Oil prices have declined only slightly, and it's all the fault of Federal Reserve Chairman Jerome Powell's statement that interest rates will rise higher than previously forecast. West Texas Intermediate futures fell below $89 per barrel after rising 4% compared to the previous two sessions. Powell said it was "premature to think about suspending the rate hike cycle" after the Fed raised rates again by 75 basis points.
All major central banks are currently trying to curb rampant inflation, which puts pressure on demand and energy. The bearish sentiment caused by the increase in rates offset the rise in gasoline prices in the United States, but this was not enough to seriously affect the situation.
Growing concerns about the slowdown in the global economy will inevitably affect the oil demand, which will limit the upward potential of the trading instrument. However, the battle between the bearish demand forecast and the bullish supply forecast continues to be waged in full. It is difficult to say how energy carriers will behave in winter since they are largely tied to geopolitical risks and factors.
Premarket:
Qualcomm shares lost 6% after the company reported weak earnings. Forecasts and targets also fell short of analysts' expectations, as demand was lower than expected due to China. According to Refinitiv, the technology company reported adjusted earnings per share of $3.13. Revenue for the quarter was $11.39 billion, compared with an estimated $11.37 billion.
Shares of the Roku streaming TV platform fell nearly 20% after the company said fourth-quarter revenue would be lower than Wall Street expects. The company reported third-quarter results that beat analysts' forecasts: a loss per share of 88 cents compared with a loss of $1.28. Revenue was $761 million, more than the estimated $694 million. However, forecasts for the future have ruined everything.
Etsy securities jumped more than 10% after the company reported quarterly profit that exceeded expectations. The online store reported revenue of $594.47 million against the expected $564.48 million. The company also expects continued sales growth in the fourth quarter, leading to a share increase.
Zillow shares rose 2.7% after reporting earnings that beat analysts' expectations. The company reported adjusted earnings per share of 38 cents, above the forecast of 11 cents. Revenue was $483 million, while Wall Street expected $456 million.
As for the technical picture of the S&P500, after yesterday's decline, demand for the index remains rather sluggish. The main task for buyers now is to protect the support of $3,735. As long as trading is conducted above this level, we can expect a return in demand for risky assets - especially if the US data disappoints. This will create good prerequisites for strengthening the trading instrument and returning $3,773 under control, just above which the level of $3,808 is located. A breakthrough in this area will strengthen the hope for an upward correction with an exit to the resistance of $3,835. The farthest target will be the $3,861 area. In a downward movement, buyers must declare themselves in the $3,735. A breakdown of this range will quickly push the trading instrument to $3,699 and open up the possibility of updating the support of $3,661.
Relevance up to 12:00 2022-11-04 UTC+1 Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
