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The significant events that happened in the past week made the markets move upwards - Weekly Review, November 9-13

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Miguel A. Rodriguez
Miguel A. Rodriguez
16 November 2020
The earnings season is in full bloom

Monday: Joe Biden was declared president-elect of the United States, beating the incumbent Donald Trump.  After the news, the American benchmarks closed the session higher. USA30 went up 2.95%, and USA500 gained 1.15%.

Crude oil traded 8.5% higher at $40.29 per barrel.

Pfizer's data showed that the vaccine developed alongside BioNTech is 90% effective in preventing COVID-19 infection. The percentage is high, given that experts were looking for a high of 75%.

McDonald's stock price went up 5% after the company posted quarterly earnings, which topped estimates. In Q3 2020,the company reported a revenue of $5.42 billion, with an EPS of $2.22.

Tuesday: Mr. Suga, the Japanese prime minister urged the cabinet to put together a new stimulus package to kick-start the economy. After the announcement, Japan225 went up 0.66%.

Beyond Meat stock price slipped 29% after the company posted Q3 2020 figures below the expectations. The revenue came in at $94.4 million, while the market was looking for $132.8 million. Its sales from restaurants and catering services dropped 11% in the quarter.

Microsoft released the "world's most powerful console" – Xbox Series X. Along with it was launched Series S. Their prices are set at $499.99 and $299.99, respectively.  After the announcement, Microsoft stock price inched down 1.6%.

Adidas had a 3% fall in Q3 2020 sales, the figures coming in at €5.96 billion. The decrease was caused by the new wave of COVID-19, which forced it to close stores. After the report, the company's stock price plunged more than 5%.

Wednesday: After gaining 0.56%, Germany30 hit a one-month high, being moved by Pfizer's potential COVID-19 vaccine.

EUR/USD went up 0.1% at 1.1827.

Big day for Apple as it launched the first computers with in-house designed chips – M1. The moment represents a transition from the Intel chips. After the news hit the wire, the company's share price gained 0.2%.

Lyft's stock closed 6% higher after it posted Q3 2020 figures that came in higher than consensus. The market was expecting $486.6 million in revenues, but the actual numbers were $499.7 million. In the quarter, the number of active users reached 12.5 million.

Alibaba stock price went down 8% even though the company reported sales of $56.42 billion for Singles' Day, topping last year's record of $38 million.

Thursday: HongKong45 fell 0.43% even after one of the country's largest companies –Tencent posted higher-than-expected quarterly earnings.

Deutsche Telekom's revenue increased 31.9% to €26.4 billion from the same quarter last year. The numbers came in ahead of the €25.8 billion forecasted. Following the report, the company's stock price inched 0.79% higher.

The pandemic's effects are starting to wear off from the UK's economy. In the quarter, the country's GDP expanded 15.5%. UK100 traded down 0.90% after the news.

The number of unemployment claims decreased for the fourth consecutive week, the figures coming in at 709,000. However, it didn't match the 730,000 expected.

Friday: One of the companies that went public this year, Palantir posted its first quarterly report. It had revenues of $289 million, which came ahead of the $279.3 million forecasted. Compared to the same quarter last year, the revenue increased by 52%. After the news hit the wire, Palantir's stock price gained 2.3%.

After its earnings report, Disney stock price went up 3.4%. In fiscal Q4 2020, the company had revenues of $14.71 billion, the figures coming in higher than the $14.34 billion forecasted. The losses per share were of $0.20, lower than the $0.68 estimated.

Cisco stock price closed 9% higher after it reported the financial figures for the fiscal Q1 2021. The company's revenue topped the $11.85 billion forecasted, coming in at $11.93 billion. The EPS was of $0.76.

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Sources: investing.com, reuters.com, forexfactory.com

This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.