U.S stock market refocus on earnings

At the beginning of this week, the market overshadowed by partial government shutdown which quickly resolved. The result of the event leads Dow Jones Industrial Averages and other major indices up. DJIA print new record high above 26,000. However, it looks like the bullish momentum might put on hold as companies ready to report earnings.

Corporate report

Netflix (NASDAQ: NFLX) popped more than 10% in pre-market after the company reported higher subscriber than expected. The company expected 6.4 million subscriptions in the fourth quarter, and the result shows 8.3 million subscriptions.

Verizon (NYSE: VZ) reported earnings per share of $0.86 vs. $0.88 expectation. Revenue comes out at $34.00 billion vs. $33.2 billion consensuses. Share prices up more than 3% in pre-market.

Procter & Gamble (NYSE: PG) down 1% in pre-market. The company reported eps of $1.19 vs. $1.14 expectation. Revenue comes out at $17.40 billion vs. $17.39 billion.

Asian & European Stock market

Asian stock market mostly up today. Nikkei up 307.82 points (+1.29%) to 24,124.15, Shang Hai Composite up 45.62 points (+1.30%) to 3,546.98 and Australia ASX 200 up 45.10 points (+0.75%) to 6,037.00. European stock market also creeps higher. DAX Germany up 0.70%, FTSE UK up 0.31%, and Euro STOXX 600 up 0.17%.

Technical Analysis

Dow Jones Industrial Average (INDU)

The upward movement of DJIA index shows no hesitation yet as the index move past 26,000 handles. Previously government shutdown is an issue which shadows the sentiment, but as the issue resolved, DJIA might continue to next milestone.

Eli Lilly & Co (LLY)

LLY is in a triangle formation, and the share prices broke down yesterday before closing up again. The decline caused by the downgrade by Credit Suisse. Although the news is bearish, overall the trend of LLY is bullish which suggest no sell yet. Traders could use the moment to trade the range with upside bias and stop below daily SMA 200.

Western Digital Corp (WDC)

In December, we mention about the bearish setup in WDC. The share prices currently hit the daily SMA 200 and waiting either for a bounce or breakout. The situation favor for more weakness as the share prices traded below the averages. Traders could look for a short position with a stop above the SMA 200.