US equity futures remained flat as earnings from Bank of America and Goldman Sachs exceeded expectations, while megacap tech stocks showed modest movements. As of 8:00am ET, S&P futures were unchanged after closing at a 46th record high on Monday, while Nasdaq futures dipped 0.1%. Bond yields are lower and the USD is weaker. Oil tumbled as much as -5% from yesterday's close after reports that Israel may avoid targeting Iran’s crude infrastructure, although Israel later denied the claim.
In premarket trading, Bank of America climbed 2% after its Wall Street operations performed better than expected. Goldman rose more than 3.3%, after it also reported earnings that beat across the board. Nvidia and AMD dell after reports that the Biden administration discussed capping sales of advanced AI chips to some countries.
Energy shares fell premarket trading, as oil prices plunged below $75 a barrel after a report that Israel will hold off attacking Iranian oil facilities. Israel later denied this, saying "it is listening to US misgivings about its planned counter-strike against Iran but will act based on its own assessments".
Elsewhere, Citigroup, Goldman and Bank of America are among the companies reporting Tuesday, while Netflix and JB Hunt will also present results later this week. Investors appear undeterred by reduced profit forecasts and are instead betting on positive surprises. Nathan Thooft, chief investment officer and senior portfolio manager at Manulife Investment Management, expects earnings season to be pretty good, but mostly because expectations have been lowered.
Oil’s drop fed through to energy stocks, which dragged European stocks lower. Europe's Stoxx 600 index slipped 0.2%, dragged down by declines in energy shares such as TotalEnergies SE and BP Plc.
Earlier in the session, Asian stocks reversed gains of as much as 0.7%, driven by sharp losses in Chinese and Hong Kong stocks. The MSCI Asia Pacific Index declined as much as 0.4%, reversing a 0.7% climb, with Chinese technology stocks including Meituan, Tencent and Alibaba the top laggards.
Bottom Line
The stock market continues to show resilience in the face of various global challenges. The earnings season is expected to be pretty good, but mostly because expectations have been lowered. It's interesting to see how investors are betting on positive surprises despite reduced profit forecasts. What are your thoughts on this? Do you think the market can sustain its current momentum? Share this article with your friends and let's get the conversation started. Don't forget to sign up for the Daily Briefing which is everyday at 6pm.
US equity futures remained flat as earnings from Bank of America and Goldman Sachs exceeded expectations, while megacap tech stocks showed modest movements. As of 8:00am ET, S&P futures were unchanged after closing at a 46th record high on Monday, while Nasdaq futures dipped 0.1%. Bond yields are lower and the USD is weaker. Oil tumbled as much as -5% from yesterday's close after reports that Israel may avoid targeting Iran’s crude infrastructure, although Israel later denied the claim.
In premarket trading, Bank of America climbed 2% after its Wall Street operations performed better than expected. Goldman rose more than 3.3%, after it also reported earnings that beat across the board. Nvidia and AMD dell after reports that the Biden administration discussed capping sales of advanced AI chips to some countries.
Energy shares fell premarket trading, as oil prices plunged below $75 a barrel after a report that Israel will hold off attacking Iranian oil facilities. Israel later denied this, saying "it is listening to US misgivings about its planned counter-strike against Iran but will act based on its own assessments".
Elsewhere, Citigroup, Goldman and Bank of America are among the companies reporting Tuesday, while Netflix and JB Hunt will also present results later this week. Investors appear undeterred by reduced profit forecasts and are instead betting on positive surprises. Nathan Thooft, chief investment officer and senior portfolio manager at Manulife Investment Management, expects earnings season to be pretty good, but mostly because expectations have been lowered.
Oil’s drop fed through to energy stocks, which dragged European stocks lower. Europe's Stoxx 600 index slipped 0.2%, dragged down by declines in energy shares such as TotalEnergies SE and BP Plc.
Earlier in the session, Asian stocks reversed gains of as much as 0.7%, driven by sharp losses in Chinese and Hong Kong stocks. The MSCI Asia Pacific Index declined as much as 0.4%, reversing a 0.7% climb, with Chinese technology stocks including Meituan, Tencent and Alibaba the top laggards.
Bottom Line
The stock market continues to show resilience in the face of various global challenges. The earnings season is expected to be pretty good, but mostly because expectations have been lowered. It's interesting to see how investors are betting on positive surprises despite reduced profit forecasts. What are your thoughts on this? Do you think the market can sustain its current momentum? Share this article with your friends and let's get the conversation started. Don't forget to sign up for the Daily Briefing which is everyday at 6pm.
