Kaohoon Morning Brief – 28 October 2022


1) FSS expects negative sentiment from weak tech stocks outlook to weight markets down

Finansia Syrus Securities (FSS) expected SET Index to move in sideways trends within 1,595-1,610 points in a mixed sentiment even after the U.S. GDP for 3Q22 beat expectations, but the market showed concerns on the earnings of tech stocks after firms such as Amazon, Apple and Meta issued weaker 4Q22 outlook.

FSS recommended investors to monitor the US inflation data later today.


2) US economy expands more than expected in 3Q22 with 2.6% growth

U.S. economic growth bounced back in the third quarter of 2022, a first positive output this year after two consecutive declines in the first two quarters of this year.

The world’s second-largest economy expanded by an annualized of 2.6% in the third quarter, beating economists expectations of 2.4% growth.

The economy declined 1.6% and 0.6% in the first two quarters of this year.


3) European Central Bank raises rate by 75bps to 1.5%, highest level since 2009

The European Central Bank maintained its effort to curb inflation as the central bank raised interest rate again on Thursday by three quarters of a percentage point, a fastest pace on record.

A 75 basis point hike had put borrowing costs of the central bank for the 19 countries that use the euro to 1.50%, the highest level since 2009. The rate for the European Central Bank had been in negative territory for eight years until it decided to raise the rate in July this year.


4) Amazon falls 13% in after hours on weak 4Q22 sales guidance

The share price of Amazon fell 13% in after hours trading on Thursday on weak fourth quarter guidance. The company published a forecast for the revenue in the fourth quarter between $140 billion and $148 billion, which would represent a 2-8% growth on a yearly basis. However, that would be lower than analysts’ consensus of $155.15 billion from Refinitiv.


5) Apple beats expectations for FY4Q22

Apple beats estimates for its FY4Q22 earnings with earnings per share of $1.29 vs. $1.27 expected. Revenue was $90.15 billion vs. $88.90 billion estimated. However, iPhone revenue slightly missed expectations, reporting at $42.63 billion vs. $43.21 billion estimated, but representing an increase by 9.67% on a yearly basis. Meanwhile, gross margin was 42.3% vs. 42.1% estimated.


6) Elon Musk completes a $44 billion deal to acquire Twitter

On Thursday, following months of legal fighting between the world’s richest man and the social media platform, Elon Musk completed his $44bn deal and became Twitter Inc.’s new owner, ending one of the most high-profile and dramatic buyout sagas in recent years.