|Day's Range||3,318.86 - 3,329.88|
|52 Week Range||2,612.86 - 3,329.88|
(Bloomberg) -- The U.S. dollar pared earlier gains on Monday after French President Emmanuel Macron and Donald Trump agreed not to impose tariffs in their digital tax dispoute untiul at least the end of this year. Crude oil rose following supply disruptions in Libya and Iraq.European stocks edged lower and U.S. equity futures drifted on Monday as investors awaited a fresh batch of corporate earnings and some key central bank meetings this week. Activity was muted across most major markets because of a U.S. holiday. Contracts on the main American equity benchmarks trimmed earlier declines to trade little changed, while the Stoxx Europe 600 closed modestly down as losses in retailers offset gains for telecommunications companies. Shares advanced in most of Asia, but slumped in both Hong Kong and India. Most European bonds edged higher, while the pound was slightly weaker ahead of U.K. jobs data due tomorrow.The Bloomberg dollar index fell back to little-changed on the report Macron and Trump had agreed not to impose punitive tariffs. The two countries will continue talks, while the Organization for Economic Cooperation and Development, of which both France and the U.S. are members works on a framework for taxing tech companies. The euro reverted an earlier decline.Brent crude jumped back above $65 a barrel as unrest hit key production regions. Iraq temporarily stopped output at an oil field on Sunday, while Libyan production almost ground to a halt after armed forces shut down a pipeline.Jitters in the oil market seem to be tempering investor confidence after the signing of the initial Sino-American trade deal and positive economic readings from China and the U.S. helped lift sentiment last week. The IMF’s latest outlook gives traders more to mull over, with the Fund predicting the world economy will strengthen in 2020, albeit at a slightly slower pace than previously anticipated.Investors now turn their attention back to corporate earnings after solid results from the biggest banks on Wall Street. Key central bank meetings in Europe and Japan are also on the agenda.“We are entering 2020 on a more stable footing with economies globally stabilizing and looking like they’re turning up, and the phase one trade deal,” Anne Anderson, head of fixed income for Australia at UBS Asset Management, told Bloomberg TV in Sydney. “So it’s a bit more positive with regard to the economic fundamentals.”Here are some events to watch out for this week:Companies including Netflix, IBM, UBS, Procter & Gamble and Hyundai will post results.Policy decisions are due from central banks including Japan, Canada, Indonesia and the European Central Bank.The World Economic Forum, the annual gathering of global leaders in politics, business and culture, opens in Davos, Switzerland.These are the main moves in markets:StocksFutures on the S&P 500 Index were little changed at 2:24 p.m. New York time.The Stoxx Europe 600 Index decreased 0.1%.The MSCI Asia Pacific Index was little changed.The MSCI Emerging Market Index dipped 0.2%.CurrenciesThe Bloomberg Dollar Spot Index was little changed.The euro was little changed.The British pound sank 0.1% to $1.3001.The onshore yuan dipped 0.1% to 6.867 per dollar.The Japanese yen was little changed at 110.17 per dollar.BondsGermany’s 10-year yield declined less than one basis point to -0.221%.Britain’s 10-year yield climbed two basis points to 0.648%.Japan’s 10-year yield advanced one basis point to 0.004%.CommoditiesWest Texas Intermediate crude climbed 0.2% to $58.66 a barrel.Iron ore decreased 0.4% to $94.15 per metric ton.Gold gained 0.2% to $1,560.77 an ounce.\--With assistance from Cormac Mullen, Haidi Lun, Adam Haigh and Sebastian Boyd.To contact the reporter on this story: Yakob Peterseil in London at firstname.lastname@example.orgTo contact the editor responsible for this story: Sam Potter at email@example.comFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Futures: Earnings season is the the next test for the hot stock market rally. Netflix and Texas Instruments earnings are due Tuesday night.
Lofty equity valuations of companies like Apple Inc were dangerous, Bernard, whose investments include Saudi Arabian gyms and Indian shoe maker Relaxo Footwears Ltd, said in an interview in the Reuters Global Markets Forum. Although the trend towards passive investing threatens the process of price discovery, it creates opportunities for investors willing to bet on overlooked stocks, Bernard said on the eve of the annual meeting of the World Economic Forum in the Swiss ski resort of Davos.
What if investors have earnings season all wrong? Rather than being too optimistic, they are too pessimistic, argue strategists at investment bank JP Morgan.
Where is this stock market head in the coming days and weeks? That is the trillion-dollar question some nervous strategists, analysts and traders are wrestling with, following a relatively brisk rally for equities to kick off 2020.
While I spend many hours a day scouring through Forex charts, the charts related to these two markets have caught my eye.
The U.S. stock market has enjoyed a nearly uninterrupted assault on records, highlighted by the Dow Jones Industrial Average (DJIA) closing at a milestone above 29,000 for the first time and the S&P 500 (SPX) achieving its own landmark close above the psychological round-number at 3,300, while investors in the Nasdaq Composite Index (COMP) may have their sights trained on 10,000.
AT&T stock topped the S&P 500 in 2019, but Tocqueville Asset Management sees even more upside, buying more than a quarter million more shares in aggregate in the fourth quarter. Apple, Microsoft and Amazon are “much less contrarian” now.
(Bloomberg) -- JPMorgan Chase & Co. strategists believe analysts are starting 2020 with an overly negative outlook on earnings and say positive surprises will give a boost to global equities.Forecasts for the S&P 500’s earnings growth over the next two reporting seasons are below those seen in the second and third quarters of last year and are likely “too low,” JPMorgan strategists led by Mislav Matejka wrote in a note on Monday. Typically, fourth-quarter earnings are 3% to 4% higher than in the second quarter, instead of lower, they said.“As the year progresses, the optimistic earnings growth forecasts by the sell-side analysts would tend to be downgraded, but crucially without an adverse effect on stocks performance,” the strategists wrote. “What is much more unusual is that the EPS projections for the next two reporting seasons might be too low.”Global profit downgrades have been outpacing upgrades every week since April, according to Citigroup Inc.’s global earnings revision index, reflecting analysts’ concerns about the impact of trade wars and slower economic growth. This failed to derail a powerful rally in both U.S. and global equities last year thanks to the continuation of monetary easing by central banks and appealing valuations.One year ago, JPMorgan’s Matejka recommended being overweight U.S. equities within developed markets, citing better earnings growth relative to the rest of the world. His call turned out to be prescient as the S&P 500 soared 29% in 2019, beating a 25% jump in the MSCI World Index. At the end of September, Matejka reduced his preference for U.S. stocks in favor of euro-area equities.Although U.S. companies have just started reporting earnings, results so far are “encouraging,” with 28 S&P 500 firms posting 3% profit growth from a year earlier, according to JPMorgan. Looking back at the last three reporting seasons, which saw $1 to $2 upgrades coincide with a rally in equities, the strategists believe a similar scenario will play out again.Corporate earnings are likely to benefit from a potential peak in the dollar and a subsequent gain in commodity prices, they said. Macro data is also key to the success of profit reports, and the deceleration in global Purchasing Managers’ Index momentum is likely to stop and turn into an acceleration in the coming months, boosting earnings, according to JPMorgan.Among sectors, the strategists say commodity and luxury firms as well as semiconductors could beat earnings expectations, while staples may lag.To contact the reporter on this story: Ksenia Galouchko in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Blaise Robinson at email@example.com, Paul JarvisFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
It's a shortened trading week, but that doesn't mean there's any less going on over the next four days. Between impeachment, the World Economic Forum, economic data and earnings season investors will have their hands full.
Martin Luther King Jr. Day honors the civil rights movement figure who gave the famous “I Have a Dream” speech. Wondering if the stock market is open today? U.S. stock markets won’t be open normal hours for MLK Day.
The streaming service will give investors their first look at how its subscriber trends fared in a more competitive environment when it reports fourth-quarter earnings after the bell on Tuesday.
The tailwind from better than expected data continues to support equity markets as US stocks traded at record levels, and those in Europe notched new highs on Friday after Chinese growth data reassured investors over the health of the world’s second-largest economy.
In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.25% on Monday after rising to its highest since June 2018. Japan's Nikkei gained 0.2% to near its highest in 15 months. U.S. corporate earnings this week include Netflix, Intel Corp and Texas Instruments, while the European Central Bank, Bank of Canada and Bank of Japan hold policy meetings.
Make no mistake, this market move is not normal, and is not something which should be able to continue technically into and through February without a major hiccup, according to technical analyst Mark Newton
The U.S. stock market seems risky now because valuations are rich, as sentiment marches higher. Usually at such extremes, value stocks enter a sustained phase of outperformance — and that’s likely about to happen. “Ignore value at your peril,” says John Linehan, chief investment officer of equity at mutual-fund giant T. Rowe Price Group.
Reports from Netflix, Intel and Texas Instruments next week may hint at what is to come in the December quarterly earnings season, with some investors wary of possible danger signs that could knock Wall Street after its latest surge to record highs. The S&P 500 has gotten off to a strong start in January, up 3% so far this year, fueled by a truce in the U.S.-China trade war, low interest rates and signs the economy remains healthy. Analysts on average expect reports to show S&P 500 earnings per share fell 0.8% in the fourth quarter, with technology earnings seen up 0.6%, according to IBES data from Refinitiv.
DnB nearly tripled its investment in Intel stock in the fourth quarter. The bank also sold nearly half of its stake in AMD stock.
Given the current chart pattern and the close at 3325.00, the direction of the March E-mini S&P; 500 Index on Monday is likely to be determined by trader reaction to Friday’s close. Taking out 3330.25 then closing lower for the session will form a closing price reversal top.
The search engine joined technology peers Apple, Amazon and Microsoft in crossing the prized market threshold, driven up by investors’ appetite for their shares. The broader stock market too has hit a record as valuations responded to the truce between the US and China on trade and surging profits from Wall Street banks.
Despite a holiday-shortened week in the US, next week’s calendar is jam packed as the Trump impeachment trial gets under way in earnest, Davos 2020 kicks off and earnings season continues. The World Economic Forum in Davos, Switzerland, kicks off next week and the theme this time round is, “Stakeholders for a Cohesive and Sustainable World”. Climate change, healthcare challenges, reducing inequality and ethics in technology are among the major themes at this year’s gathering of business and political leaders from around the world.