U.S. Stock Market Looks To Extend Gains, As Microsoft Earnings Are In Focus

Major US stock futures traded around a flat line in late Monday’s session as many market participants hoped to continue their strong start to the week as more earnings are expected. , futures tied to the Dow Jones Industrial Average rose a slight 0.1%, while futures for the S&P 500 and Nasdaq 100 fell less than 0.1%. Somewhat quiet futures trading followed a strong start on Wall Street, with the Nasdaq Composite up 2.01%, the SandP 500 up around 1.19% and the Dow up 0.76%, extending its winning streak to a second session. The market additions came after a somewhat disappointing start to the earnings season and more signs of a slowdown in the US economy. The gains came despite a poor start to the earnings season and more signs of a slowdown in the US economy. “Maybe we could see some positive surprises in this quarter, the fourth, because the economy has held up well,” said Angelo Kourkafas, investment strategist at Edward Jones. “However, the focus is on all kinds of guidance and outlook, and the leading economic indicators and market indicators, we are all looking at the same thing a slowing and weakening economy.” On Tuesday, General Electric and Johnson & Johnson will report results before the market opens, while after the bell, tech giant Microsoft is expected to publish its earnings report. The Window maker announced last week that it will lay off 10,000 workers, joining other tech companies such as Amazon and Alphabet that have recently announced job cuts. However, Microsoft on Monday announced a multi-billion dollar investment in OpenAI, creator of the ChatGPT artificial intelligence platform. In the oil market, prices were slightly higher in early Asia as optimism about growing Chinese energy demand remained, but gains were limited by worries about a US economic slowdown. Brent crude traded at $88.1 a barrel by 0 36 GMT, having risen to $88.36, while US West Texas Intermediate (WTI) was near $81.6 a barrel. According to analysts at Goldman Sachs, commodities such as crude oil, refined petroleum products and liquefied natural gas will benefit from the increase in Chinese demand. Crude oil prices in the physical market had a strong start to the year as China abandoned its zero-covid-19 policy and showed signs of further purchases, and many market participants worried that sanctions against Russia could affect supplies. . . “In addition, oil prices are supported by the dollar hovering at its lowest level in several months,” says oil market expert Sugandha Sachdeva. The dollar hit a near nine-month low against the euro and gave up most of its gains against the Japanese yen as many market participants continued to weigh the possibility of a US recession and future interest rate hikes by the US Federal Reserve. In general, a weaker US dollar makes dollar-denominated goods, such as oil, cheaper for holders of other currencies. , in the US “However, the economy could turn sharply, and some energy traders remain skeptical about how quickly Chinese crude demand will recover this quarter,” noted OANDA analyst Edward Moya. The US dollar index, which links the US dollar to six other currencies including the euro and yen, was down about 0.12% to close at 101.89. . The euro gained about 0.08% to trade near $1.0880, close to Monday’s high of $1.0927, one of the highest levels since April. “The US is no longer the cleanest shirt in the global economy,” says Ray Attrill, headache strategist at National Australia Bank, as he sees the US dollar index drop to close to 100 by the end of March and the euro rises around. $1.10. dollars “Crucial to our bearish view of the US dollar is that the US is not the leader in global growth.” Many market participants expect two more 25 basis point increases from the Fed in June and an increase in benchmark interest rates to around 5%, but they also see two 25 basis point rate hikes by the end of the year. , According to the Federal Reserve, however, a scenario of 75 basis points or more is possible. The adoption of the European common currency was supported by comments from members of the European Central Bank, which show further increases in interest rates. ECB president Christine Lagarde reiterated on Monday that the central bank will continue to rapidly raise interest rates to curb the acceleration of inflation. “President Lagarde was among the hawks, so we are comfortable with our call to raise 50 basis pairs in the next two meetings,” Commonwealth Bank of Australia strategist Joseph Capurso said in a note to clients.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s