No rebound for ASX as big tech faceplants

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The Australian dollar is a little bid this morning, as it nearly always is in Asian time, but there is no mistaking the bearish descending triangle. A break of 70 cents opens the way for big downside:

The bond curve is steeping as inflation disappears. Go figure:

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No bounce for XJO:

As big tech misses lead futures lower:

Twittersinks in late trading after user growth expectations were off. The company added 20 million new users in Q2.It added just 1 million new users in Q3. Expectations were that Twitter would report growth of 9 million new users in the quarter so this is a definite miss. The company also said there will be a delay in its MAP direct response ad product.

Facebook’sshares are modestly lower. Revenue blew past estimates as the company weathered the ad boycott from big advertisers. Also, user growth over overall exceeded expectations, but the company lost traction in the U.S. and Canada. Also, Facebook said it will be investing heavily on employees and new technology.

Amazonshares are down despite reporting profit and net sales that beat quarterly estimates. The retailer sees up to $121 billion in fourth-quarter sales. Bezos expects an “unprecedented” holiday season. CFO says Covid-related expenses will go up to $4 billion.

Applesales plunge 29% in China, grow in other regions. IPhone revenue falls short of analysts’ estimates. Lack of revenue forecast dissapoints some observers. Shares fall, dragging suppliers down in late trading.

Alphabetreturned to growth in the third quarter after a decline in the previous period, fueled by digital advertising that has rebounded along with the American economy. The shares rose about 6% in extended trading.

Big Iron is happy. It has new year restocking ahead. But Vale is back so any buy now is a short term trade:

Big Gas is up a bit. More downside ahead for mine:

Big Gold has bounced too:

Big Banks have a minor bid as the yield curve steepens again:

The local tech bubble has barely begun to burst:

Still utterly beholden to Wall St.

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.