Daily Market Newsletter: February 7, 2024

DAILY MARKET NEWSLETTER

February 7, 2024

Here are today's directional views from the global research desks of Trading Central! These are starting points for your research to identify opportunities that make sense for you.

MARKET WRAP

MARKET WRAP: STOCKS, BONDS, COMMODITIES

On Tuesday, U.S. stocks pared most losses seen earlier in the session. The Dow Jones Industrial Average closed 141.24 points higher (+0.37%) at 38,521, the S&P 500 climbed 11 points (+0.23%) to 4,954, while the Nasdaq 100 slipped 40 points (-0.23%) to 17,572.

Several officials of the U.S. Federal Reserve echoed Fed Chair Jerome Powell's saying that the central bank is prudent in deciding when to cut interest rates.

The U.S. 10-year yield declined 7.4 basis points to 4.090%.

Materials, real estate, and healthcare stock sectors performed the best in the trading session, while technology, communication services, and financial sectors underperformed the market.

• Tesla (TSLA) rebounded 2.23% to $185.10, while Nvidia (NVDA) retreated 1.60% to $682.23.

• Palantir Technologies (PLTR) soared 30.80% to $21.87, as the data-mining specialist's 2024 earnings guidance surpassed expectations.

• GE Healthcare Technologies (GEHC) rose 11.65%, as the medical technology firm reported better-than-expected quarterly earnings.

• In after-market hours, Ford Motor (F) jumped over 6%. The automobile giant posted upbeat quarterly earnings, adding it will return more cash to shareholders.

• Meanwhile, Snap Inc (SNAP) tumbled 31% as its quarterly revenue missed expectations.

European stocks closed higher, with the DAX 40 rising 0.76%, the CAC 40 up 0.65%, and the FTSE 100 up 0.90%.

Much earlier on Tuesday, China's blue-chip CSI 300 Index climbed 3.48%, and Hong Kong's Hang Seng Index jumped 4.04%. Chinese stock market regulators announced further curbs on short-selling, and state investors revealed plans to expand stock-buying.

U.S. WTI crude oil futures added $0.72 (+0.99%) to $73.50 a barrel.

Gold price rose $10 (+0.52%) to $2,035 an ounce.

MARKET WRAP: FOREX

The U.S. dollar index dipped to 104.17.

• EUR/USD added 11 pips to 1.0752. The Eurozone's retail sales dropped 1.1% on month in December (vs -1.0% expected).

• Germany's factory orders unexpectedly increased 8.9% on month in December (vs -0.1% expected).

• USD/JPY retreated 79 pips to 147.88.

• GBP/USD rose 61 pips to 1.2593. In the U.K., the S&P Global Construction Purchasing Managers index posted at 48.8 in January (vs 48.2 expected).

• AUD/USD climbed 39 pips to 0.6521. The Reserve Bank of Australia kept its key interest rate unchanged at 4.35% but said it could still hike rates.

• USD/CHF dipped 9 pips to 0.8696.

• USD/CAD fell 53 pips to 1.3485. In Canada, the Ivey purchasing managers index rose to 56.5 in January (vs 55.8 expected). Building permits dropped 14.0% on month in December (vs +2.5% expected).

Bitcoin advanced over 1% to $43,180.

GBP/USD Intraday: the upside prevails.

Pivot: 1.2575

Our preference: Long positions above 1.2575 with targets at 1.2625 & 1.2645 in extension.

Alternative scenario: Below 1.2575 look for further downside with 1.2555 & 1.2535 as targets.

Comment: Technically the RSI is above its neutrality area at 50.

USD/JPY Intraday: under pressure.

Pivot: 148.40

Our preference: Short positions below 148.40 with targets at 147.40 & 147.10 in extension.

Alternative scenario: Above 148.40 look for further upside with 148.80 & 149.10 as targets.

Comment: As long as 148.40 is resistance, look for choppy price action with a bearish bias.

EUR/USD Intraday: the upside prevails.

Pivot: 1.0740

Our preference: Long positions above 1.0740 with targets at 1.0770 & 1.0785 in extension.

Alternative scenario: Below 1.0740 look for further downside with 1.0720 & 1.0700 as targets.

Comment: Technically the RSI is above its neutrality area at 50.

Dow Jones (CME)‎ (H4)‎ Intraday: continuation of the rebound.

Pivot: 38480.00

Our preference: Long positions above 38480.00 with targets at 38780.00 & 38880.00 in extension.

Alternative scenario: Below 38480.00 look for further downside with 38380.00 & 38320.00 as targets.

Comment: The RSI is bullish and calls for further advance.