Google Earnings Weigh on Stocks

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Google misses cloud growth expectations and shares are sharply lower, putting pressure on stock indices. Housing data comes in mixed, and yields are higher.

TRANSCRIPT

Good afternoon, traders. It’s Chris Chavez with the Blue Line Futures and it’s your daily midday market minute Google earnings are putting pressure on stock indices. But before we get to it, if you’re watching this video like it, subscribe if you’re on our website. There’s also a link to direct you to YouTube and you can subscribe that way. We’d love for you to follow us.

We’d love for you to help us build our following. So yeah, Google reported after the bell yesterday, we did see a beat. However, cloud growth slowed more than expected did. So you’re seeing a lot of selling and Google shares today and down about 9%, 9 to 10% or so, which is really inflicting pain on the Nasdaq 100 in the S&P, the Russell in negative territory as well, although the Dow Jones is relatively hanging in there.

The biggest outperformer here today, just about unchanged. So we did get some economic data here this morning. Building permits, new home sales. We also got the month over month building permit numbers and crude inventories. So looking at the building permits that came in leading indicator, we did see a little bit of a weakness there, 1.47, 1 million versus 1.473 million.

So slight, slight miss. Their new home sales for the month of September did come in a lot higher than expectations. 759,000 versus 680,000 expected and the month over month number for building permits came in at 4.5% versus 4.4 expected. Crude oil inventories did see a slight uptick, a little bit more inventories inventory than previously expected. So, you know, you initially saw a kneejerk reaction in the crude market.

We traded a little bit lower, found our footing, and now we’re just a bit higher. We got some really nice trend line support and definitely going to be a market to keep on your radar moving forward. Tomorrow, we’re going to have jobless claims, GDP, pending home sales. So a lot more economic data. We’re still in earnings season, so continuing to see a lot of earnings come through and, you know, play a role in this market here moving forward, looking at some of these major support and resistance levels.

If we’re following the S&P major three star support’s going to be 40 to 35 in three quarters to 42, 41 in three quarters. Nasdaq three star support’s going to be 15, 514 to 15 586. And crude oil, a major pivot pocket that you’re going to want to keep an eye on is 83, 74 to 84. If we get above 84, typically were trading higher, finding our footing a little bit, and then the next level, three star level, you’re going to want to keep an eye out for resistance.

85, 35 to 85, 65. However, if we trade below that 83 six, 74 level in that pivot pocket, we could head a little bit lower too. So be nimble there. Keep an eye on that pivot pocket of gold. Three star resistance is going to be 1994 and 4/10 to 1997 and 6/10. Really, we traded right up to that 1997 level here today and kind of sold off just a little bit.

So a major level to keep an eye on here moving forward. And if you have any questions, reach out to our trade desk. We’re here for you. Remember, futures trading involves substantial risk of loss is not suitable for all investors.

END TRANSCRIPT


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Futures trading involves substantial risk of loss and may not be suitable for all investors. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.

Blue Line Futures is a member of NFA and is subject to NFA’s regulatory oversight and examinations. However, you should be aware that the NFA does not have regulatory oversight authority over underlying or spot virtual currency products or transactions or virtual currency exchanges, custodians or markets. Therefore, carefully consider whether such trading is suitable for you considering your financial condition.

With Cyber-attacks on the rise, attacking firms in the healthcare, financial, energy and other state and global sectors, Blue Line Futures wants you to be safe! Blue Line Futures will never contact you via a third party application. Blue Line Futures employees use only firm authorized email addresses and phone numbers. If you are contacted by any person and want to confirm identity please reach out to us at info@bluelinefutures.com or call us at 312- 278-0500


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Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program.

One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results.

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