untitled design

Market Update: US Futures, Earning Reports, Global Markets, & Commodity Prices

US stock index futures jumped overnight on Sunday as Wall Street awaits the busiest earnings week with some of the major tech companies releasing their reports. The spur was supported by the push for the $1.9 trillion stimulus program after the new president Joe Biden joined the office.

US Stock Futures

The Dow index was up 74 points, suggesting a 90-point jump at the open. The S&P futures gained 0.33% while the Nasdaq futures increased 0.56%. On Friday, the indices were mixed with the S&P 500 and Dow declining while they still posted gains for the week.

The Dow saw its fifth positive week in six while the S&P 500 registered its third positive week in four. The Nasdaq closed at a record high jumping 4.19% for the week, marking its best week since November and the fifth positive week in six thanks to the tech giants pushing the index to a new high.

Major Earnings Reports

In the upcoming week, 13 Dow companies and 111 S&P 500 companies, which represent 39% of the S&P futures by market value, will be releasing earnings. Some of the most awaited reports include:

  • Microsoft and Johnson & Johnson will announce earnings on January 26.
  • Apple, Facebook, and AT&T will be releasing their respective reports on January 27.
  • Major airlines like JetBlue, Southwest, and American will post earnings on January 28.

Bank of America has said that 73% of the S&P 500 companies which have already released earnings topped both sales and earnings expectations. The bank pointed that the trend was similar to last quarter when the number of companies exceeding estimates hit a record high.

Recently, IBM, UnitedHealth Group, United Airlines, Goldman Sachs, and Bank of America revealed earnings.

The stimulus aid brings hope for more direct checks for Americans, funding for the Covid-19 vaccines, and an increase in the minimum wage and unemployment benefits. However, the surging cases of the vaccine-resistant virus and the elevating jobless claims show that the new president has a tough task to do.

Global Markets

Asian stocks are mixed on Monday with the Nikkei 225 and Topix tiptoeing around the flat line. The Korean Kospi is up 2% while the Australian S&P/ASX 200 jumped 0.36%.

European markets have been depressed since Friday with economic activity falling to a two-month low this month. The Stoxx 600 plunged 0.57% by the close. With further strict travel guidelines announced by the EU government, travel and leisure stocks crashed 2.5%.

Oil Prices

Oil prices declined Friday with Brent crude falling 60 cents or 1.1% to $55.50 per barrel. US West Texas Intermediate (WTI) crude futures tumbled 86 cents or 1.6% at $52.27 per barrel. The depression was led by the increase in US crude inventories and anxiety that the demand from the world’s biggest oil importer, China, will fall owing to pandemic restrictions. Last week, US crude inventories unexpectedly rocketed to 4.4 million barrels as compared to estimates for a draw of 1.2 million barrels.

Late last year, the market recovered owing to increased demand by China as the US and Europe lagged. However, with the new wave of Covid-19 cases, new restrictions could be imposed that could diminish oil imports.

Gold Prices

Gold prices slipped until 1.8% Friday, still marking its first weekly gain in three by gaining 1.4% so far. Spot gold declined 1% to $1,851.5 per ounce, trimming its two-week high on Thursday. US gold futures slid 0.8% to $1,851.50.

Much of the happenings in the markets will depend upon the rollout of the coronavirus vaccines and their efficiency in controlling the ever-rising cases.

You may also like

Most popular