The stock market continue in an uptrend
Several stock indices had a relief rally, taking S&P 500 15.5% higher and Nasdaq 12.5% up from their local bottoms. The upcoming Christmas suggests the uptrend may continue due to the historic “Santa Claus Rally.” This could take S&P 500 above 4,100 and Nasdaq above 12,200 if history repeats itself. However, dangerous levels are in the way.
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After rising 3.7% on Thursday, Apple stock dived 3.2% after the earnings report. This is because Apple recorded the biggest quarterly sales decline since 2016: $117.2 billion vs. the expected $121.88 billion. The EPS is 1.88 instead of the forecasted 1.94.
Meta stock jumped 20% in after-hours trading after the earnings report. This is despite the fact that the forecasted 2.26 EPS was actually 1.76. However, revenue exceeded expectations of $31.53 billion with $32.17 billion. Meta also announced a $40 billion stock buyback.
Despite meeting the market forecast, Snapchat fell 15% in after-hours trading, dropping below $10. The company delivered $1.3 billion in revenue as projected, and exceeded 0.11 EPS expectations with 0.14.
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The Reserve Bank of Australia increased interest rates by 25 bps from 3.1% to 3.35%. The interest rates were raised for the ninth time in a row, bringing borrowing costs to a level not seen more than a decade.
“I envision a scenario in which inflation is dropping significantly and the economy is continuing to be strong,” Treasury Secretary Janet Yellen has remarked. “Having the lowest unemployment rate in more than 50 years and creating 500,000 new jobs doesn’t seem like a recession to me,” she added.
After almost falling to 100, the dollar index (DXY) surged above 103. This is for the first time since early January on rising hopes that the Fed will continue to hike interest rates. It was affected by the better-than-expected US jobs report.