Settles, IBM and Netflix Tomorrow
Equity markets saw early Asian trade strength, which led to a waffling European session, which gave way to the NY open which led to the hammer drop! We warned last week of the 3504 area importance and now the 3411 0.618Fib is in play and slammed the door shut on the sellers late in the day today:
IBM came out with disappointing earnings today as Q3 as quarterly sales numbers fell below even Q12020 Covid and slowing Cloud growth as there are many new entrants into that field and will see how IBM can respond in the coming quarters, as for the numbers:
$17.560BN total revenue, (exp. $17.6BN)
Cloud and cognitive software revenue $5.55 billion, (Exp. $5.41 BN)
Global business services revenue $3.97 billion, (Exp. $3.93 BN)
Global technology services revenue $6.46 billion, (Exp. $6.33 BN)
Systems revenue $1.26 billion, (Exp. $1.46 BN)
Global Financing revenue $273 million, (Exp. $280.6 MN)
After hours IBM down 2.8% to $122.00
Tomorrow earnings highlight is NETFLIX, subscriber growth still a problem with deceleration continuing, guidance is for 2.5m subscribers which is a low guidance and hoping for a beat no doubt. Wednesday is TESLA we know how strong that stock has been so this will be an interesting earnings reaction. Here is a quick look at Netflix:
Alright as for the futures settles:
Bonds, Equities all lower, FX was mixed as was Energy, but Metals all higher on the day. Expect volatility to continue, expect position parings and bets over the next two weeks as the election looms closer. Stay quick and nimble and don’t get married to anything here, positions have to be flexible and you have to adapt. We know equities have backed off our target/reversal area and this is a sign sellers have control, but rest assure, stimulus news will lead to a sharp rebound if we get it.
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