Analytics, News, and Forecasts for CFD Markets: stock news — 02-02-2021.

U.S. stock-index futures rose on Tuesday, as hopes increased for more U.S. stimulus, progress was made on vaccinations and concerns about a speculative retail trading frenzy eased.

Global Stocks:

(company / ticker / price / change ($/%) / volume)

Pfizer (PFE) reported Q4 FY 2020 earnings of $0.42 per share (versus $0.55 per share in Q4 FY 2019), missing analysts’ consensus estimate of $0.46 per share.

The company’s quarterly revenues amounted to $11.684 bln (+11.8% y/y), beating analysts’ consensus estimate of $11.322 bln.

The company also issued upside guidance for FY 2021, projecting EPS of $3.10-3.20 versus analysts’ consensus estimate of $2.97 and its prior guidance of $3.00-3.10 and revenues of $59.4-61.4 bln versus analysts’ consensus estimate of $48.51 bln.

PFE rose to $36.00 (+0.56%) in pre-market trading.

Alibaba (BABA) reported Q3 FY 2021 earnings of RMB22.03 per share (versus RMB18.19 per share in Q3 FY 2020), beating analysts’ consensus estimate of RMB20.94 per share.

The company’s quarterly revenues amounted to RMB221.084 bln (+36.9% y/y), beating analysts’ consensus estimate of RMB214.393 bln.

BABA fell to $263.40 (-0.49%) in pre-market trading.

Exxon Mobil (XOM) reported Q4 FY 2020 earnings of $0.03 per share (versus $1.33 per share in Q4 FY 2019), beating analysts’ consensus estimate of $0.02 per share.

The company’s quarterly revenues amounted to $46.540 bln (-30.7% y/y), missing analysts’ consensus estimate of $48.756 bln.

XOM rose to $45.88 (+2.14%) in pre-market trading.

EUR fell against most of its major rivals in the European session on Tuesday as dismal EU's GDP data raised expectations that the European Central Bank (ECB) might be forced to extend stimulus to help the block's struggling economy to overcome its pandemic-triggered downturn.

Eurostat reported its preliminary estimate showed that Eurozone's GDP shrank by 0.7% q-o-q and by 5.1% y-o-y in the fourth quarter of 2020. Economists had forecast a 1.0% q-o-q decline and a 5.4% annual drop after a sharp rebound (+12.4% q-o-q) in the third quarter when the countries of the region eased coronavirus containment measures after the first wave of the COVID-19 pandemic.

In the whole year of 2020, the Eurozone's economy fell 6.8%. This marked the sharpest annual contraction since the series started in 1995.

Moreover, it is expected that the block's economy will show another decline for the first quarter of 2021 as many member states reinforced restrictions and imposed lockdowns to combat a resurgence of the coronavirus outbreak in Europe. 

FXStreet notes that although last week's market correction was long overdue (and perhaps not finished), two differences separate the tech bubble of 1999-2000 and the present. The similarities are there with respect to elevated prices for many tech stocks, however, economists at Morgan Stanley think the fundamental backdrop is very different. 

“2000 was a classic late cycle period: unemployment was very low and the Fed was beginning to tighten policy to stave off excesses in the real economy. Today, we are in a very early cycle, and still in the nascent stages of a recovery from a recession. Unemployment remains elevated and the Fed continues to provide very stimulative policy. In fact, many parts of the economy are still very much in a recession and haven't even begun to recover yet.”

“Our advice continues to recommend patience in the near-term, and try to take advantage of this correction by buying stocks with the most upside to an improving economic backdrop, as the vaccines are distributed and things fully reopen. These would include stocks in the pro cyclical sectors like banks, materials, industrials and consumer. Buy such stocks during this much needed correction that likely isn't finished.”

UPS (UPS) reported Q4 FY 2020 earnings of $2.66 per share (versus $2.11 per share in Q4 FY 2019), beating analysts’ consensus estimate of $2.14 per share.

The company’s quarterly revenues amounted to $24.896 bln (+21.0% y/y), beating analysts’ consensus estimate of $22.855 bln.

Given continued economic uncertainty due to the global pandemic, the company did not provide FY 2021 revenue/EPS guidance.

UPS rose to $161.50 (+3.35%) in pre-market trading.