Good start to a big week for earnings
Although violence in Ukraine has continued at the street level, the street has taken a diplomatic breakthrough reached last week as a sign tensions are unlikely to spiral out of control. This has sent gold, oil and wheat sharply lower to start the week as the last of their political risk premiums evaporate.
Many markets overseas have remained closed today and return to trading overnight tonight, but North American markets are open today and appear to be off to a positive start with traders turning their focus toward corporate earnings reports.
This is the busiest week of the quarter for earnings led by many of the most active technology companies like Apple and Facebook. We could see some positioning in Netflix today ahead of this afternoon’s earnings report. This morning’s main reports all beat the street with Hasbro potentially the most interesting since its stock had been knocked down last week when competitor Mattel disappointed.
Hasbro $0.14 vs street $0.10
SunTrust Banks $0.73 vs street $0.66
Halliburton $0.73 vs street $0.72
Reports have been circulating over the weekend that merger negotiations between Barrick Gold and Newmont Mining fell apart last week but could go back on again, so who knows?
Economic reports released overnight and this morning include:
Japan trade balance (¥1,446B) vs street (¥1,080B)
Economic reports due later today include:
10:00 am EDT US leading index street 0.7%