Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

U.S. Opening Bell: Futures, Shares Resume Rally On Earnings, Stability; Oil Higher

By (Pinchas Cohen/ OverviewFeb 03, 2021 12:19
U.S. Opening Bell: Futures, Shares Resume Rally On Earnings, Stability; Oil Higher
By (Pinchas Cohen/   |  Feb 03, 2021 12:19
Saved. See Saved Items.
This article has already been saved in your Saved Items
  • Reddit-hyped stocks slump
  • Alphabet, Amazon beat on earnings
  • Tech leads reflation trade rally

Key Events

US futures contracts on the Dow, S&P, NASDAQ, and European stocks advanced for the third day in a row on Wednesday. Investors have grown confident in market stability after concerns that the volatility caused by the standoff between hedge funds and retail trader would topple the broader market. Earnings beats from Amazon and Google reinforced the positive outlook. 

However, Russell 2000 futures were trading in the red. Gold and the dollar rebounded.

Global Financial Affairs

A strong earnings announcement from Alphabet (NASDAQ:GOOGL) on Tuesday after the market closed, which included a 42% increase in revenue and a 45% increase in earnings, was driven by its search engine and YouTube, as well as Google Cloud gaining momentum.

The Amazon (NASDAQ:AMZN) results earnings call included the news that founder and CEO, Jeff Bezos is stepping down, and Amazon Web Services CEO Andy Jassy, will be elevated to the top job in Q3.

The move suggests the world’s largest retailer might set its sight on overtaking Microsoft (NASDAQ:MSFT) as the world’s top cloud services provider. However, Bezos said he was stepping down to focus on new products and push along new initiatives, boasting that they have “things in the pipeline that will continue to astonish.” 

The current narrative is that the reflation trade is driving the market. Reflation trades typically comprise companies sensitive to economic cycles, which have underperformed during coronavirus lockdowns, that would benefit from economic stimulus. This group includes small caps, as well as energy and financials firms. However, the tech sector, which includes stocks that have excelled amid social restrictions, is actually leading the current reflation rally. 

Futures on the NASDAQ, up 0.6%, more than doubled the 0.3% advance of S&P 500 contracts, while contracts on the Russell 2000 were 0.3% in the red.

NDX Daily
NDX Daily

Yesterday, the NASDAQ 100 provided an upside breakout, completing a falling flag, targeting 14,000.

In Europe, the STOXX 600 Index climbed 0.9%, with all the major sectors in the green. Germany’s DAX gained 0.8% with Siemens (DE:SIEGn) jumping 1.8% after it surpassed first-quarter expectations and increased its outlook for 2021. The company recovered from the pandemic more quickly than anticipated.

Sales growth and positive guidance pushed Novo Nordisk (CSE:NOVOb) 3.2% higher. Volvo (ST:VOLVb) climbed 0.7% after beating its fourth-quarter estimates, brightening its outlook. The company also rolled out a large shareholder payout.

South Korea’s KOSPI was up 1.1% after regulators extended a ban on short selling to May 2, following the country’s Reddit version rebellion in which retail traders bought up the most shorted shares, including biopharmaceutical Celltrion (KS:068270). China’s Shanghai Composite fell 0.5% on profit taking of highly valued tech stocks, offsetting strong guidance for Chongqing Changan Automobile Co Ltd (SZ:000625).

US shares posted back-to-back gains on Tuesday as the retail trading hype ebbed away. Every sector was in positive territory, with financial and industrial firms driving the index higher, making the case for the cyclical trade.

United Parcel Service (NYSE:UPS) rose after reporting a surge in profits, and Exxon Mobile (NYSE:XOM) climbed on its promise to safeguard dividends. GameStop (NYSE:GME) and AMC Entertainment (NYSE:AMC) crashed over 41% as speculative trading dissipated. Silver also fell from its eight year high.

Yields, including on the 10-year Treasury note were higher.

10-year Treasuries Daily
10-year Treasuries Daily

The move extended the upside breakout of a falling flag within a rising channel.

The dollar recovered from a dip.

Dollar Index Daily
Dollar Index Daily

The greenback simultaneously completed a H&S bottom and a bullish wedge.

Gold rebounded from the bottom of a rising flag, despite dollar strength.

Gold Daily
Gold Daily

The yellow metal struggled within a confluence of technical pressures —Death Cross amid the bearish flag, after it fell back into its falling channel, while it still might step up to a H&S bottom.

Silver completed a powerful, bearish evening star at the resistance of the August highs, while still within a rising channel since the December bottom.

Silver Daily
Silver Daily

A fall between the September and November low would complete a double top for the white metal.

Bitcoin formed an intraday shooting star on its third straight rise.

Bitcoin Daily
Bitcoin Daily

The cryptocurrency will complete a bullish flag, once the price clears the Jan. 29, much longer shooting star.

Oil extended an advance to the third day, completing a falling flag, like bitcoin. 

Up Ahead

Market Moves



  • The Dollar Index was little changed at 91.16
  • The British pound was little changed at $1.3669.
  • The euro was little changed at $1.2039.
  • The onshore yuan was little changed at 6.458 per dollar.
  • The Japanese yen weakened 0.1% to 105.05 per dollar.


  • Britain’s 10-year yield advanced two basis points to 0.373%.
  • The yield on 10-year Treasuries gained two basis points to 1.12%.
  • The yield on two-year Treasuries climbed less than one basis point to 0.12%.
  • Germany’s 10-year yield jumped three basis points to -0.46%.
  • Japan’s 10-year yield increased less than one basis point to 0.058%.


  • West Texas Intermediate crude gained 0.8% to $55.20 a barrel.
  • Brent crude gained 1% to $58.05 a barrel.
  • Gold weakened 0.1% to $1,835.88 an ounce.
  • Silver rose 0.8% to $26.91 an ounce.
U.S. Opening Bell: Futures, Shares Resume Rally On Earnings, Stability; Oil Higher

Related Articles

Ryan Anderson
PREVIEW: ECB Policy Announcement By Ryan Anderson - Oct 28, 2021 2

ECB policy announcement due Thursday 28th October; rate decision at 12:45BST/07:45EDT, press conference from 13:30BST/08:30EDT A decision on the future of PEPP is not expected to...

U.S. Opening Bell: Futures, Shares Resume Rally On Earnings, Stability; Oil Higher

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email