U.S. Stocks 

Fundamental Analysis: 

The U.S. stock market S&P 500 and Nasdaq closed lower on Thursday, 27th October 2022 as investors digested strong economic data and mixed corporate results.

The Dow Jones industrials closed higher, led by industrials, while weakness in technology-weighted and tech-related large-cap stocks weighed on the S&P 500 and Nasdaq, which were weighed down by discouraging quarterly results and gloomy earnings estimates.

Facebook’s parent company MetaPlatforms tumbled 24.6% after the company followed in the footsteps of Microsoft and Alphabet Inc and issued gloomy forecasts.

But heavy equipment maker Caterpillar reported a better-than-expected quarterly profit, sending its shares jumping 7.7% and providing the biggest impetus for the Dow’s gains.

Third-quarter GDP data showed the U.S. economy returned to growth in the third quarter, and quarterly core inflation held steady, helping to take the sting out of corporate results.

Investors continue to monitor economic conditions, looking for evidence that the Fed’s string of aggressive rate hikes from March had the desired effect of cooling the economy.

Fast-food chain McDonald’s rose 3.3% after reporting quarterly same-store sales that beat estimates.

Southwest Airlines rose 2.75% after the company reported a quarterly profit that beat estimates.

Amazon plunged more than 19% in after-hours trading after the company gave a disappointing sales forecast.

Apple plunged more than 5% in after-hours trading after the company reported revenue and profit that beat estimates but reported tepid iPhone sales.

Intel jumped 7% in after-hours trading before narrowing its gains, even after the company lowered its annual revenue forecast.

Technical Analysis:

(Dow 30, 1-hour chart) 

Execution Insight: 

The Dow focuses on the 32363-line today. If the Dow runs steadily above the 32363-line, it will pay attention to the suppression strength of the 32681 and 32975 positions. If the Dow runs steadily below the 32363-line, it will pay attention to the support strength of the 32038 and 31590 positions.

Hong Kong Stocks 

Fundamental Analysis: 

Hang Seng Index (HSI) opened 0.02% lower at 15424.94 points, Hang Seng TECH Index (HSTECH) opened 0.38% lower at 2977.91 points, and the Hang Seng China Enterprises Index (HSCEI) opened 0.18% lower at 5233.44 points.

Technology stocks weakened, Tencent Holdings Limited (0700.HK), Bilibili Inc. (9626.HK), Baidu, Inc. (9888.HK) fell 1%, GDS Holdings Limited (9698.HK) fell nearly 6%.

Overnight, U.S. stocks in the probable new energy vehicle stocks fell in general, auto stocks fell collectively, XPeng Inc. (9868.HK) fell 5%, and NIO Inc. (9866.HK) fell more than 2%.

Biotechnology, education sector were higher. In the third quarter, operating income increased by 22.46% year-on-year, and COSCO SHIPPING Ports Limited (1199.HK) opened nearly 3% higher.

Technical Analysis: 

(HK50, 1-hour chart) 

Execution Insight: 

HK50 focuses on the 15995-line today. If HK50 can run stably above the 15995-line, then focus on the suppression strength of the 16964 and 17535 positions. If the HK50 runs below the 15995-line, then pay attention to the support strength of the 15136 and 14309 positions.

FTSE China A50 Index 

Technical Analysis: 

(FTSE China A50, 1-hour chart) 

Execution Insight: 

FTSE China A50 focuses on the 11665-line today. If the A50 runs stably below the 11665-line, pay attention to the support strength of the two positions of 11447 and 11220. If the A50 runs above the 11665-line, it will open up further upward space. At that time, pay attention to the two positions of 11955 and 12135.

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