US markets weren’t celebrating in Columbus Day holiday trading yesterday when the Dow dropped over 200 points; all major US stock indices are looking lower on today’s open thanks to a disappointing German investor confidence report that helped continue the pattern of selling on any attempted rally as investors head to the hills before banking and blue chip earnings reports today. Futures suggest: Dow Jones will open 16 points lower at 16,305 with the S&P 500 expected to open 2 points lower at 1,872 and the Nasdaq 1 point lower at 3,820. The banking sector will be the focus of attention today with opinions divided as to whether the end of quantitative easing and the gradual increase in interest rates will benefit the large money-centre banks or not. JP Morgan Chase have released quarterly earnings a few hours early, the bank has beaten revenue estimates but missed on profits earning $1.36 on revenue of $25.2bn, shares are down in pre-market trading. If JP Morgan’s numbers are replicated by Citigroup and Wells Fargo, stock markets could be in trouble particularly given Wells Fargo is the largest mortgage provider in the US which wouldn’t speak well for the US housing recovery and the boost it has given the US economy. Citigroup is expected to report an increase in earnings per share over the same period last year of $1.14 on higher revenue of $19bn. Wells Fargo is expected to earn $1.02 per share on revenue of $21.2bn. Whether the Dow Jones can hold above August lows having touched 16,300 yesterday will likely be largely impacted by reports from blue chip heavyweights Intel and Johnson & Johnson. Intel is projected to earn 65c per share on revenue of $14.44bn Johnson and Johnson is expected to earn $1.44 per share of revenue of $18.38bn 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 at the lows before open, JPM early report
20:00, 13 October 2014