Apple & Amazon’s earnings result to weigh on the market

Apple’s and Amazon’s both disappoint the market by missing the earnings result. Both companies also provide a weaker than expected future outlook which puts more pressure on the share prices. Meanwhile, inflation numbers continue to creep up in Europe. Eurozone reported 4.1% inflation in October which is a new 13-year high.

Traders will continue to observe the earnings releases and the market reaction nearing the FOMC meeting. We might see the market turn bearish before the meeting and set the next direction after the outlook provided by the Fed.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index printed a bearish close two days ago but there is no bearish continuation. The index made a bullish close instead yesterday and looking to add more gain. However, the index will trade lower today as the futures lower more than 100 points on market bearish reaction toward Apple’s and Amazon’s future outlook

Embraer SA ADR (ERJ)

ERJ share prices made a bearish correction and reached the daily SMA 100. There is a support trendline present near the current level which will provide support. If the share prices could bounce from both levels then the bullish trend is set to continue with the expectation of a higher swing high printed.