Account

New to ADSS? Open an
account now to get started.

OR

Already have an account?

Add funds to your ADSS account

Account

New to ADSS? Open an
account now to get started.

Add funds to your ADSS account

Trends & Analysis
News

Goldman Sachs shares surge after earnings beat

News

Keep an eye on these key S&P 500 levels

News

US big banks report better-than-expected earnings

News

Crude oil declines on profit taking

News

Delta Air Lines shares crash despite earnings beat

News

GBP spikes ahead of major economic data

Trends & Analysis
News

Goldman Sachs shares surge after earnings beat

News

Keep an eye on these key S&P 500 levels

News

US big banks report better-than-expected earnings

News

Crude oil declines on profit taking

News

Delta Air Lines shares crash despite earnings beat

News

GBP spikes ahead of major economic data

News

Oracle shares spike on upbeat FQ3 profits

 

Tuesday, March 12, 2024

Today’s headlines

What’s happening: Shares of Oracle Corp surged in after-hours trading on Monday, following the release of the company’s results for the fiscal third quarter.

What happened: The database giant reported stronger-than-expected profits for the latest quarter amid a surge in demand for GenAI (generative artificial intelligence).

Oracle’s sales came in slightly below market expectations and the company issued a weak sales outlook.

How were the results: The Austin, Texas-based company reported a single-digit increase in sales for the three months ended February 29.

  • Revenues grew by 7% year-over-year to $13.28 billion, missing the consensus estimates of $13.30 billion.
  • Adjusted earnings surged 16% to $1.41 per share, which topped Wall Street expectations of $1.38 per share.

Why it matters: Oracle has been looking to expand its cloud infrastructure business by offering cheaper services than its peers like Amazon. However, the company has lately been facing headwinds, with a slowdown in growth rates. Oracle managed to grow its sales almost at the same pace as the previous quarter, showing some signs of stabilisation.

The company said its remaining performance obligations, which is a measure of booked revenue, surged 29% year-over-year during the quarter.

Oracle’s total cloud revenues jumped 25%, while cloud infrastructure revenues surged 49%. Cloud application revenues gained 14%, Fusion cloud revenues rose 18% and NetSuite Cloud ERP revenues climbed 20%.

“We expect to continue receiving large contracts reserving cloud infrastructure capacity because the demand for our Gen2 AI infrastructure substantially exceeds supply – despite the fact we are opening new and expanding existing cloud datacenters very, very rapidly,” CEO Safra Catz said during the earnings call.

The board announced a quarterly cash dividend of 40 cents per share. Management guided to total revenue growth of 4%-6%, below market expectations of around 6.5%.

How shares responded: Oracle’s shares jumped 14.3% to $130.50 in the extended trading hours following the release of quarterly results on Monday. The stock has gained around 10% year to date.

What to watch: Investors will continue monitoring demand for GenAI and competition from other infrastructure providers.

The markets today

The British pound will be in focus today, ahead of jobs data from UK

Context: The GBP/USD forex pair fell on Monday, as investors assessed the latest recruitment report.

Details: Data released on Monday showed UK’s labour market cooling sharply during February.

The Recruitment and Employment Confederation trade body and accountants KPMG reported that their monthly index of demand for staff declined to a reading of 46.9 in February, from 49.4 in January. This also marked the weakest reading since January 2021.

The sterling had surged around 1.6% against the US dollar last week, with traders expecting the Bank of England to be slower than the US Federal Reserve and European Central Bank in slashing interest rates.

Traders expect the BoE to announce its first rate cut in August, while the Fed and the ECB are widely expected to cut rates in June.

Strength in the US dollar also exerted pressure on the GBP/USD forex pair on Monday. The US dollar index, which measures the greenback’s performance versus a basket of major peers, gained around 0.2% to 102.87.

The GBP/USD forex pair fell more than 0.3% to 1.2813 on Monday. The EUR/GBP gained around 0.2% to reach 0.8527, after recording a weekly loss of 0.6% last week.

London’s FTSE 100 gained 0.12% to 7,669.23 on Monday, despite remaining lower for most of the day. The index had declined by around 0.4% in the prior session.

What to watch: Investors await the release of economic reports on unemployment rate, average weekly earnings, and employment change from the UK today. The UK’s unemployment rate is expected to remain unchanged at 3.8%, while average weekly earnings, including bonuses, are projected to increase 5.7% year-over-year in the three months to January. Analysts expect the number of employed people in the UK to increase by 10,000.

Other Markets: US trading indices closed mixed on Monday, with the S&P 500 and Nasdaq 100 down by 0.11% and 0.37%, respectively, and the Dow Jones index up by 0.12%.

The news shaping the markets

The Director of National Intelligence, Avril Haines, asked US lawmakers to announce further military funding for Ukraine. The news sent the RUB/USD slightly lower in forex trading this morning.


Australia’s building permits declined by 1% to 12,850 units in January. This marked a significant improvement from the 10.1% plunge in the previous month and lent support to the AUD/USD forex pair.


Japan’s producer prices increased by 0.6% year-over-year in February, faster than the 0.2% increase recorded in the earlier month, sending the JPY/USD pair lower in forex trading this morning.


The Philippines said its trade deficit shrank to $4.22 billion in January, from $5.56 billion in the year-ago month. However, the PHP/USD fell in forex trading this morning.


Argentina’s central bank lowered its benchmark interest rate from 100% to 80%, which sent the ARS/USD forex pair higher this morning.

What else to watch today

Germany’s inflation rate, Turkey’s industrial production and current account, UK’s claimant count change and HMRC payrolls change, US NFIB small business optimism index, consumer prices, Redbook index and API crude oil stock change, India’s Industrial production, retail inflation, manufacturing production and total passenger vehicle sales, Mexico’s industrial production, Brazil’s inflation rate, industrial entrepreneur confidence index and Central Bank of Brazil focus market readout, China’s new yuan loans, money supply M2, value of outstanding loans and loans to private sector, as well as Argentina’s inflation rate.


Site by Pink Green
© ADSS 2024


Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.

ADS Securities LLC (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates as a trading broker for Over the Counter (“OTC”) Derivatives contracts and foreign exchange spot markets. ADSS is a limited liability company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.

The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.

ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.