Will AMZN Rise or Fall To Close April Trading High?
Today, 28 April 2023 (Fri) is the :
last trading day of week.
last trading day of April 2023.
end of one-third of Q2 2023.
Will the US market be able to close off Apr 2023 in positive territory again?
This time riding on the tailcoat of $Amazon.com(AMZN)$ “positive” quarterly earnings released only after market closed ?
Both DJIA and S&P 500 ended strongly on Thu, 27 Apr with +1.57% and +1.96% gain respectively - thanks to $Meta Platforms, Inc.(META)$ quarterly earnings announced after Wed’s closing.
Nasdaq movement was negligible. The “only” consolidation is at least index is above its key support 12,000 mark.
Was yesterday’s US market performance due to official reporting that US economy grew by an annualized 1.1% in Q1 2023 vs market expected 2.0% ?
Comparatively speaking, US GDP has slowed considerably from Q4 2022’s expansion growth of +2.6%.
Like to think that this is what the Fed would like to witness.
Wasn’t it Mr Powell who warned that central bank would continue to raise interest rates in a way that will cause “some pain” to the US economy back in 26 Aug 2022 ?
Finally, after 9 interest hikes, it is evident that US economy is responding to the stimuli finally. Agree ?
Coupled with FOMC meeting scheduled for beginning next week, this might just be the reasons the Fed require to justify:
one more interest hike of 0.25%.
no more interest hike for remaining 2023.
maintain interest rate at current “high” in immediate term while observing if it warrants interest reduction.
Amazon was the 4th FAANG to release its quarterly earnings after market closed.
It reported stronger-than-expected revenue and profits for Q1 2023, sending its stock price higher in after-hours trading.
However, the euphoria proved to be short-lived.
Prices dipped later in the evening due to an unwarranted concern (I feel) about a continued slowdown in Amazon’s profitable cloud computing unit Amazon Web Services (AWS).
Isn’t this to be expected given that the costs of doing business has “compounded” many times over due to rising interest rates?
As a result, a lot of companies are cutting expenses and halting projects and expansion plans until things improved.
Couldn’t the wall street analysts and experts figure this out for themselves ?
After a good night rest, I hope all traders are sufficiently clear minded and realized that $Alphabet(GOOG)$ , Meta Platform Inc and Amazon have handed in glowing report cards; sending a clear signal that Tech is back!
And this calls for a celebration!
Do you think Amazon stock price will continue to rise today ?
Do you think US market will end on a high note today ?
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Amzn is too honest on earnings calls just lost 175 bil gain after market gain. Need better PR people to spin bad earnings like MSFT and NVDA.
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Amazon turned only small profit skyrocketing. Everything's a beat when they low ball earnings.