OPEC+ is monitoring developments around the new coronavirus variant, with some exporting countries expressing concern that it may worsen the oil market outlook less than a week before a meeting to set policy. Global authorities reacted with alarm to news of the B.1.1.529 variant, with the EU, Britain and India among those announcing stricter border controls. Oil plunged more than 10%, the largest one-day drop since April 2020. OPEC delegate said it was not yet clear how significant an impact the variant would have. Oil demand has been recovering and is expected by OPEC to return to the pre-pandemic rate of 100 million bpd in 2022.
Trading recommendation: range 70.10 - 75.50.
U.S. Treasury debt yields on Friday posted their sharpest drop since the pandemic. According to CME's FedWatch tool, money market traders were pricing in a 58.5% chance of at least a 0.25% hike by the Federal Open Market Committee's June meeting, down from an 82.1% chance Wednesday before the U.S. Thanksgiving holiday, and a 67% chance a week ago before Biden renominated Powell. This is a positive signal for the stock market. The soft monetary policy of the Federal Reserve has a favorable effect on the capitalization of the stock market.
Trading recommendation: Buy 4550 and take profit 4650.
The third quarter results were strong, driven by one of best-ever quarters for new subscriptions, record subscription renewal rates, a net revenue retention rate towards the high end of our range, and a solid competitive performance. Notable milestones during the quarter included the launch of Flex consumption model and plans to combine technologies, connect processes, automate workflows, and unlock valuable insights for customers through Forge platform. Total revenue growth in the quarter accelerated to 18 percent, and 17 percent in constant currency, with subscription revenue growing by 21 percent. About three quarters of new customers to Autodesk are now generated through digital channels, reflecting the strength of simplified buying experiences. Free cash flow of $257 million during the quarter against a comparison from last year. Consistent with capital allocation strategy, management continued to repurchase shares. Year to date, management have repurchased 1.66 million shares for a total spend of $476 million dollars.
Trading recommendation: buy 252.30 and take profit 270.66.