US OPEN: Goldman Sachs disappoints with earnings

  • US indices set to open flat as markets await ‘Phase One’ trade deal details

  • Goldman Sach (GS.US) earnings drop on litigation provisions

  • BlackRock (BLK.US) retains world’s top asset manager position

US equity markets are set to open flat today as traders await signing of ‘Phase One’ trade deal. Signing was well communicated therefore it should not be a major market event in terms of volatility. However, Steven Mnuchin said that details of the deal will be released today and it could be a potential market mover. Goldman Sach and BlackRock are among companies whose earnings reports attracted the most attention today.

Situation on the US500 chart is unchanged against yesterday as the index continued to move sideways. Release of ‘Phase One’ details is the potential risk event for today. ATH at around 3295 pts can be considered the near-term resistance. On the other hand, shoulder line of the SHS pattern at 3250 pts is the nearest important support while the lower limit of Overbalance structure (green box) and trendline serve as final support. Source: xStation5

Goldman Sach earnings drop on litigation provisions

Goldman Sachs (GS.US) reported earnings today and those stood in contrast to the ones we saw yesterday from JP Morgan or Citigroup. EPS of Goldman Sachs came in at $4.69, much lower than analysts estimate of $6.04. The company experienced a significant drop in investment banking revenue as it declined 5.9% YoY. Most of the other revenue metrics increased so where did the earnings plunge come from? Goldman Sachs recorded provisions for litigations and regulatory proceedings related to 1MDB scandal that are said to reduce full-year EPS by $3.16.

Goldman Sachs (GS.US) finished yesterday’s trading at 17-month high. However, a lacklustre earnings report may push the stock lower today. The nearest support levels to watch in case of a deeper pullback can be found at $234.10, lower limit of the 1:1 structure, and at $225, where 50% Fibo level coincides with zone marked by previous price reactions. Source: xStation5

BlackRock retains world’s top asset manager position

BlackRock (BLK.US), the world's biggest asset manager, also reported Q4 2019 earnings ahead of the opening bell today. An adjusted EPS of $8.34 was 8.4% higher than median estimate while revenue of $3.977 marked a 3.2% beat. The company also experienced solid inflows causing its assets under management to jump to $7.43 trillion (+6.75% QoQ and +24.2% YoY). Net ETF inflows amounted to $75.2 billion in Q4 2019. The company secured its position of the world's biggest asset manager.

BlackRock (BLK.US) has been trading in a steady upward move since mid-October 2019. Company reported a stellar earnings report today and is set to open higher. Should the good moods prevail, the stock may continue climbing towards the next major resistance - price zone marked with 50% Fibo level of downward move started at the beginning of 2018 and local peak from May-June 2018. Near-term support can be found at around $500. Source: xStation5

3 markets to watch next week
Coronavirus: market update
Crypto newsletter: Crypto market slowly recovers
Economic calendar: Sales figures from Canada and US consumer sentiment data
Morning wrap
When performing transactions in the OTC Forex market, the possibility of making a profit is inextricably linked with the risk of losses.