Western leaders are pointing the blame at Russia for Thursday’s dreadful plane crash so the likelihood of stronger sanctions as well as the increasing death toll in Gaza has sent European markets sharply lower with US markets looking set to follow suit. It will be left to earnings from the likes of Netflix, Allergan and Halliburton to lift investor confidence in the profitability of corporate America Futures suggest the Dow Jones will open 40 points lower at 17,060 with the S&P500 expected to open 5 points lower at 1,973 and the Nasdaq 8 points lower at 3,931. Allergan’s management need solid earnings to justify to shareholders that Allergan as a standalone entity as opposed to one merged into Valeant Pharmaceuticals can produce the most value. The company is expected to earn $1.44 per share on revenue of $1.77bn before the market open today. Halliburton has unsurprisingly been trading at a premium given the current global unrest. The defence contractor is expected to report earnings of 91c per share on revenue of $7.88bn before today’s open. Netflix will release earnings after today’s close. The company announced a price hike for monthly users last quarter, has been expanding in Europe and has won critical acclaim for its original content. The price hike will have boosted the bottom line but its influence on new customer sign-up will also be a key metric to watch. The online streaming company is expected to earn $1.16 per share on revenue of $1.33bn. CMC Markets is an execution only provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
Can corporate earnings trump geopolitics today? Allergan, Halliburton to watch
19:00, 20 July 2014