US STOCKS: Late Equities Roundup: Holding Gains, Energy & Chips Stocks Leading
- Stocks continue to extend late session highs as concerns moderate over the Trump administration's trade policy, China tariff tit-for-tat notwithstanding. Currently, the DJIA trades up 153.9 points (0.35%) at 44573.8, S&P E-Minis up 41.5 points (0.69%) at 6063.75, Nasdaq up 241.9 points (1.2%) at 19633.39.
- Energy and Information Technology sectors continued to lead gainers in late trade, oil and gas stocks supporting the former: Marathon Petroleum gaining 6.75% after beating earnings estimates while lowering capacity to 85% to improve margins. Meanwhile, Valero +4.66%, APA Corp +4.47% and Phillips 66 +4.02%.
- After trading weaker the last few sessions, the Information Technology sector gained on support from semiconductor makers: Monolithic Power +4.13%, Advanced Micro Devices +3.96%, Enphase +3.93% and Nvidia +2.06%. Of note, software solutions heavyweight Palantir surged 22.63% on strong earnings and guidance.
- On the flipside, Utilities and Consumer Staples sectors continued to underperform in the second half, multi energy producers weighing on the former: Dominion Energy -4.21%, Edison Int -1.3% and NextEra Energy -1.25%. On Consumer Staples, Estee Lauder fell nearly 17% after announcing 7,000 job cuts and to book charges of $1.2 billion to $1.6 billion before tax. Elsewhere, Clorox declined 6.78%, PepsiCo -4.67% and Archer-Daniels-Midland -3.44%.
- Additional earnings announcements expected after the close: Snap, Alphabet Inc, Match Group, Amgen, Advanced Micro Devices, Lumen Technologies, Simon Property Group, Enphase Energy, Electronic Arts, Omnicom Group and Juniper Networks Inc.
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JGB TECHS: (H5) Returns Lower
- RES 3: 149.55 - High Mar 22 (cont)
- RES 2: 147.74 - High Jan 15 and bull trigger (cont)
- RES 1: 144.48/146.53 - High Nov 11 / High Aug 6
- PRICE: 142.12 @ 15:01 GMT Jan 03
- SUP 1: 141.65 - Low Dec 30
- SUP 2: 141.56 - 1.764 proj of the Aug 6 - Sep 3 - 9 price swing
- SUP 3: 141.05 - 2.000 proj of the Aug 6 - Sep 3 - 9 price swing
Markets slipped on the hawkish Fed and are yet to fully recover, touching 141.65 on the way lower. Medium-term trend signals on the continuation chart continue to point south. A resumption of the trend would pave the way for a move towards 141.56, a Fibonacci projection point on the continuation chart. A stronger recovery would open 144.48, the Nov 11 high. Further out, key resistance is at 146.53, the Aug 6 high (cont).
USDCAD TECHS: Bull Flag Highlights A Clear Uptrend
- RES 4: 1.4669 2.0% 10-dma envelope
- RES 3: 1.4539 3.382 proj of the Oct 17 - Nov 1 - 6 price swing
- RES 2: 1.4508 3.236 proj of the Oct 17 - Nov 1 - 6 price swing
- RES 1: 1.4467 High Dec 19
- PRICE: 1.4392 @ 15:50 GMT Jan 3
- SUP 1: 1.4336 Low Dec 20
- SUP 2: 1.4307/4232 20-day EMA / Low Dec 17
- SUP 3: 1.4136 50-day EMA
- SUP 4: 1.4011 Low Dec 5
USDCAD is unchanged and bulls remain in the driver’s seat. The latest pause appears to be a flag formation - a bullish continuation signal. Note too that moving average studies are in a bull-mode position, highlighting a dominant uptrend. Sights are on 1.4508 next, a Fibonacci projection level. Initial firm support to watch lies at 1.4307, the 20-day EMA. A pullback would be considered corrective.
AUDUSD TECHS: Southbound
- RES 4: 0.6471 High Dec 9
- RES 3: 0.6408 50-day EMA
- RES 2: 0.6341 High Dec 18
- RES 1: 0.6247/6282 High Dec 30 / 20-day EMA
- PRICE: 0.6204 @ 15:21 GMT Jan 3
- SUP 1: 0.6179 Low Dec 31
- SUP 3: 0.6158 1.236 proj of the Sep 30 - Nov 6 - 7 price swing
- SUP 3: 0.6100 Round number support
- SUP 4: 0.6045 1.500 proj of the Sep 30 - Nov 6 - 7 price swing
A bearish trend condition in AUDUSD remains intact and the pair continues to trade closer to latest lows. Recent weakness maintains the price sequence of lower lows and lower highs. Note that moving average studies are in a bear-mode position too, highlighting a dominant downtrend. Scope is seen for an extension towards 0.6158 next, a Fibonacci projection. Initial firm resistance to monitor is 0.6282, the 20-day EMA.
