US markets look set to open higher putting-aside the imposition of new EU sanctions on Russia that focus on Putin’s inner circle of advisors while awaiting consumer confidence data and earnings from eBay, Twitter and Sprint. Futures suggest the S&P500 will open 6 points higher at 1,875 with the Dow Jones expected to open 43 points higher at 16,491. Major US indices are still stuck in their ranges while earnings and economic data are digested to assess the strength of US economy and its ability to withstand the expected Federal Reserve tapering of another $10bn from monthly asset purchases on Wednesday. Today will be another important day for technology shares and the Nasdaq. So far tech companies have been guiding towards higher earnings in the rest of the year with mixed results from Q1. eBay is expected to have earned $0.67 per share on revenue of $4.23bn. Having fought off suggestions by activist investor Carl Icahn to spin off PayPal, eBay are expected to have increased revenue by 12.7% in the year. The shares didn’t participate in the large ramp up in tech shares during 2013, staying in a range between $50 and $60 and is down 11% from its high in February. Digging deeper into the earnings data, the key metric is likely to be eBay’s marketplace revenue which has been under increased competition from Amazon and other e-retailers investing heavily in their online stores. Twitter is expected to lose $0.03 per share on revenue of $241.47m Sprint is expected to have a loss of $0.06 per share 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.
Consumer confidence and earnings from eBay and Twitter ahead
19:00, 28 April 2014