US markets look set to open higher today unperturbed by military action in eastern Ukraine and slightly weaker Chinese GDP growth with shares in Yahoo! shooting higher overnight as Alibaba whom they have a 24% stake, doubled earnings in the 4th quarter. Futures suggest the S&P500 will open 12 points higher at 1,855 with the Dow Jones expected to open 89 points higher/lower at 16,351. All major US indices had reached critical price levels with the Dow touching 16,000 and 3,420 having capped losses twice since November for the Nasdaq. It’s at these kind of levels that tests the resilience of bulls and bears, the bulls won out yesterday boosted by positive earnings from Coca-Cola and Johnson & Johnson. Yahoo! Shares shot higher in afterhours trading as net income for Alibaba more than doubled to $1.35bn in the fourth quarter. With Alibaba’s IPO expected soon this has boosted valuations for the company from averaging $150bn to more like $200bn. In a sign of the times, there now appears to be a good chance that the largest IPO in American history will be from a Chinese company. As superstar of the US internet technology industry and fresh on the back of having acquired drone-maker Titan Aerospace, all eyes will be on results from Google. The internet search behemoth is expected to show earnings of $6.40 per share on revenue of $15.52bn. Expectations are high for continued good results so any deviation would definitely not bode well for the already weakened tech sector. Bank of America report first quarter earnings today expected to show $0.05 earnings per share on revenue of $22.33bn. American Express is expected to show an EPS of $1.30 with revenue of $8.36bn. US Bancorp is estimated to report $0.73 per share on revenue of $4.8bn 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.
US markets higher - Yahoo! Waiting for Google
19:00, 15 April 2014