Shares of the e-commerce pioneer Amazon (NASDAQ: AMZN) bounced more than 13% in Thursday's after-hours session after the company announced better-than-expected second-quarter revenue numbers but the company posted a quarterly net loss of $2 billion, its second consecutive loss in a quarter.
The upbeat Q2 revenue was boosted by impressive revenue in Amazon Web Services and advertising. Revenue for Amazon Web Services (AWS) increased 33% to $19.7 billion in the last quarter and advertising revenue grew 18% to $8.8 billion. Amazon also provided an optimistic forecast for the third quarter, as it expects revenue between $125 billion and $130 billion, representing growth of 13% to 17%.
“Despite continued inflationary pressures in fuel, energy, and transportation costs, we’re making progress on the more controllable costs we referenced last quarter, particularly improving the productivity of our fulfilment network,” Amazon CEO, Andy Jassy said.
US futures extended the gains on Friday morning supported by better-than-expected earnings results. Moving ahead to the North American session, investors should closely monitor the release of US personal income and spending data, because the Federal Reserve views the PCE index as the best barometer of inflation trends.
Crude oil futures traded higher on Friday and the bullish momentum remained throughout this week lifted by falling US crude inventories and the weak US dollar. Both API and EIA inventory data came better than expected this week. Moving ahead, the focus shifts to the next week's Organization of the Petroleum Exporting Countries (OPEC) and allies meeting.
In the currency market, the Euro and British pound slightly reversed from their early gains. Meanwhile, the dollar index, which measures the greenback against six other major currencies slightly rebounded back to above 106 but overall momentum remained bearish after the release of weak US GDP data.
The safe-haven metal holding the previous session gains on Tuesday supported by the sharp decline in the US dollar. Overall, the momentum remains bullish throughout the European session. At the time of writing, the metal trades were above $1760.
On the data front, US GDP for Q2 showed the economy contracting for the second consecutive quarter. The GDP fell at a yearly pace of 0.9 percent in the second quarter.
Moving ahead today, the important events to watch:
US – Personal income and spending: GMT – 12.30
Canada – GDP: GMT – 12.30
Worldwide, more than 570 million people have been confirmed infected and more than 6.38 million have died. The United States has confirmed over 90.4 million cases and has had more than 1.02 million deaths from COVID-19, the highest total in the world.
Technical Outlook and Review
EURUSD: Technically the overall momentum remains bullish, the immediate support for the Euro stands near the level of 1.0180. On the flip side, the key resistance at 1.0280 any break above this level will open 1.0330/40 minimum.
The important levels to watch for today: Support- 1.0200 and 1.0170 Resistance- 1.0280 and 1.0340.
GOLD: For today as long as the metal trades above $1750 levels, the medium-term uptrend will remain in place. On the downside, $1756 is the immediate support level, followed by $1750. Further selling pressure will intensify only if the Index break below $1740 levels.
The important levels to watch for today: Support- 1750 and 1745 Resistance- 1772 and 1780.
Quote of the day - Successful investing professionals are disciplined and consistent and they think a great deal about what they do and how they do it. - Benjamin Graham.