It’s that time of year again where all eyes are on major corporations across the US, releasing their latest earnings. So far, stocks have maintained a bullish bias with strong expectations that earnings will remain strong.
US equities moved higher for the most part with the Nasdaq composite gaining 0.8% while the S&P 500 closed 0.3% higher. The Dow Jones Industrial Average was not as lucky and ended the session with modest losses of 0.1%, to close at 35,258.61.
Some of the biggest names set to release earnings this week include Netflix, Johnson & Johnson, United Airlines, Procter & Gamble, Tesla, Verizon and IBM with others also in the lineup.
Last week saw strong earnings from major banks, further supporting the firmness of indices. The Dow Jones is only 1% away from its record highs while the Nasdaq stands at 2.5% and the S&P 500 at 1.3%. Analysts are seeing a quick move higher if this week remains promising.
Nonetheless, there has been some sentiment interrupters. US industrial production dropped during September following supply concerns while China’s GDP disappointed at 4.9% versus 5.2%. While GDP figures remain strong, some signs of a slowdown exist, according to traders.
Other concerns go back to the topics of inflation, labor data, and the future actions of the Fed. The latest jobs report came in at 194K versus a forecast of 500K, a relatively weak number despite a major improvement in the unemployment rate at 4.8%. It remains to be seen what the next FOMC will hold and how it will relate to the markets.
It’s worth noting that 41 S&P 500 components reported earnings so far with 80% of them topping EPS forecasts.
On a different note, cryptocurrencies are on the move again with Bitcoin pushing above $60,000 and altcoins also taking some spotlight. Ethereum is in focus as well as it approaches $4,000.
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