Investing.com - pressure on short positions on shares and silver decreases; RobinHood has attracted another $ 2.4 billion from shareholders to fulfill the requirements for the provision; Amazon (NASDAQ: AMZN) and Alphabet (NASDAQ: GOOGL) will report after the closing of the market, while Exxon (NYSE: XOM) and BP (NYSE: BP) are reported earlier; The dollar is growing as progress in the negotiations in the incentive of the US economy, and the eurozone economy is reduced; OPEC technical experts carefully study data from the oil market. This is what you need to know about the stock market on Tuesday, February 2.
1. The grip of traders weakens
Shortskvis in several shares, preferred retail investors, continues to weaken at the premark, while the data indicate a further decrease in net short positions on the shares of many companies that have redeemed retail traders.
By 06:30 in the morning East time (11:30 GRINVICHI) Gamestop Corp (NYSE: GME) shares fell by 24% at a premium after falling on Monday by 31%. Thus, the shares have already fallen by more than 50% of their peak, and their price is now such a fair "bulls", which make long-term rates, such as GMedd.com, in the conditions of the "bullish" market.
AMC Entertainment shares (NYSE: AMC) also fell at a 22% premark, and BlackBerry shares (NYSE: BB) - by 6.8%, while silver futures that have reached on Monday of an eight-year-old maximum fell by 5, 7% to $ 27.83 per ounce. The online brokerage company Robinhood said that she attracted another $ 2.4 billion from shareholders to thus financing the collateral to which the increased demands of the clearing chamber are imposed.
2. The dollar is growing against the background of stimulating negotiations
US President Joe Biden stated that he would continue to insist on its economic support plan for $ 1.9 trillion after unsuccessful, but "constructive" meeting with Republican senators who want to cut the package. These negotiations gave rise to hope that, with the support of both parties, the draft law could be adopted, which suggests more solid financing of the economy, and weakened concerns that the package would be postponed for a long time or reduced due to the resistance of the Republican Party.
The budget management of the Congress said on Monday, after renewed its forecasts, taking into account the package of the cost of the new administration, which expects the return of US GDP to his peak, which was observed before the pandemic, by the middle of this year.
In the meantime, the dollar index reached a seminary maximum, since investors revised the relative short-term prospects for the economic growth of the United States compared with the market of Europe and other developed markets after a very soft statement of the Central Bank of Australia. The Eurozone GDP fell in the fourth quarter by 0.7% due to the resumption of quarantine, which hit the region. In annual terms, GDP fell by 5.1%, which is more expected to 4.3%.
3. The US market will open with growth
The US stock market will grow at the opening in connection with the revision of the forecasts of the US economy in the direction of increasing and confidently in the success of the implementation of the expense administration plans.
By 06:30 in the morning East time (11:30 GRINVICHI), Dow Jones futures increased by 266 points, or 0.9%, while futures on S & P 500 increased by a similar amount, and futures on NASDAQ Composite, Which rose on Monday by more than 2%, rose by 0.8%.
Today, when there will be little important economic data from the United States, income reports are likely to dominate the news flow. Exxon Mobil (NYSE: XOM) must be reported for the first time after information on its preliminary merger negotiations has been disclosed with Chevron (NYSE: CVX), while BP (LON: BP) reported that in the fourth quarter its basic profit fell to $ 115 million
Pfizer (NYSE: PFE), United Parcel Service (NYSE: UPS), ConocoPhillips (NYSE: COP), McKesson (NYSE: MCK) and Harley-Davidson (NYSE: HOG) - other loud brands that should report their results before opening .
4. Alphabet and Amazon will demonstrate the rapid growth of cloud technologies
However, the most expected investors quarterly results will be released after the closure of the market. Amazon is expected (NASDAQ: AMZN), which may become the largest beneficiary of a pandemic as a result of accelerating the tendencies to online shopping and remote work, reporting incomes by 37% to $ 116 billion due to its cloud hosting AWS and sharp increases Sales in the USA via the Internet. Its operating costs that grew as the company hired more employees to meet higher demand, will also be carefully studied.
Alphabet will also be to report (NASDAQ: GOOG), which is expected to demonstrate in the fourth quarter a confident growth of its cloud hosting and YouTube. Analysts are expected to increase revenue by 15% to $ 52.9 billion, however, only a moderate increase in profits per share in the amount of 2.3%.
5. Meeting OPEC experts and API data for oil reserves
Technical experts from the organization of oil exporters will meet to consider the situation in the global oil market. They must submit to the Ministers recommendations on whether the blocks of the block should adjust the production volumes. Not expected to be expected, given that Saudi Arabia is the largest oil producer - has already made an obligation to unilaterally reduce production by 1 million barrels per day for the next two months.
However, it is possible that the Group will recommend some changes in quotas for individual members of the block. OPEC ministers, as well as ministers of the Union of the Union of the Block, including Russia and Kazakhstan, should approve the policy for the next month on Wednesday.
On Tuesday, the American Oil Institute (API) publishes its weekly assessment of oil reserves in the United States. Analysts expect stocks will increase by about 367 thousand barrels, which will be offset by a slightly large reduction in distillates.
Futures for crude US WTI oil increased by 2.4% to $ 54.83, which is a strong indicator, given the growth of the dollar's course, while Brent Oil futures rose 2.3% to $ 57.62 per barrel.
Author Jeffrey Smith
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