US markets look set to open higher today as another taper by the Fed and almost no growth in the US for the first quarter is brushed aside to bring about a record close for the Dow yesterday. Today we look ahead to the ISM manufacturing PMI survey results and earnings from Exxon Mobil, MasterCard, Viacom and Kraft foods. Futures suggest the S&P500 will open 1 point higher at 1,885 with the Dow Jones expected to open 8 points higher at 16,588. With yesterday’s Chicago PMI coming in better than expected, extra emphasis will be on the ISM result today to reinforce the theory that the second quarter will see a strong rebound from the lowly 0.1% GDP growth seen in the first. With poor results from Twitter and eBay the Nasdaq continues to be a laggard. The record close for the Dow is tantamount to the rotation out of technology and momentum shares and into more established value names. With bond yields in Europe at record lows, dividend-paying stocks are increasingly in demand. Exxon Mobil is expected to report first quarter earnings at $1.88 per share on revenue of $109.76bn. The oil major raised its dividend alongside competitor Chevron yesterday and the stock price broke above its high around 102 this week. The energy sector has been one of the best performing this year and with raised dividends and new price highs, evidence suggests the company is performing well. Mastercard is expected to report earnings of $0 72 per share on revenue of $2.14bn. With Visa having reported very strong earnings this season, odds on MasterCard will have benefited from the same strong consumer spending environment, particularly as card payments continue to outpace cash as the payment method of choice. Viacom quarterly earnings are expected to show $1.05 per share on revenue of $3.20bn Kraft’s earnings for the quarter are expected to be $0.76 per share on revenue of $4.45bn 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 hold steady after Dow’s record close
11:00, 01 May 2014