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    US earnings seasons off to a solid start as focus shifts to tech giants

    By Kyle Rodda

    14:31, 17 October 2024

    Despite downward revisions for aggregate earnings growth for the S&P 500 for the quarter, the week’s corporate results boosted market sentiment. The banks soundly beat market expectations, with main street banks, such as Wells Fargo, showing resilient net interest income and only moderate provisions for bad debts. Meanwhile, the investment banks, such as Goldman Sachs and Morgan Stanley, revealed strong activity across their investment banking and trading divisions.

    Investors will shift their focus to the results of some of Wall Street’s biggest tech companies, with several of the “Magnificent 7” reporting. The major themes for the sector this quarter will be the scale of investments in artificial intelligence; whether previous capital expenditure in the technology is beginning to deliver returns; and the strength of consumer activity, especially as it relates to advertising spending and e-commerce.

    Source: FactSet

    Key companies to watch in the week ahead

    Friday, October 18

    • Procter & Gamble Company (PG), Est. EPS $1.90
    • American Express Company (AXP), Est. EPS $3.27

    Tuesday, October 22

    Alphabet Inc. (GOOG), Est. EPS $1.83

    Wednesday, October 23

    Tesla, Inc (TSLA), Est. EPS $0.46

    GBP/USD

    1.30 Price
    +0.250% 1D Chg, %
    Long position overnight fee -0.0040%
    Short position overnight fee -0.0043%
    Overnight fee time 21:00 (UTC)
    Spread 0.00013

    AUD/USD_zero

    0.67 Price
    +0.600% 1D Chg, %
    Long position overnight fee -0.0056%
    Short position overnight fee -0.0026%
    Overnight fee time 21:00 (UTC)
    Spread 0.00006

    EUR/USD

    1.08 Price
    -0.210% 1D Chg, %
    Long position overnight fee -0.0080%
    Short position overnight fee -0.0002%
    Overnight fee time 21:00 (UTC)
    Spread 0.00006

    USD/JPY

    149.96 Price
    +0.230% 1D Chg, %
    Long position overnight fee 0.0091%
    Short position overnight fee -0.0174%
    Overnight fee time 21:00 (UTC)
    Spread 0.010

    Thursday, October 24

    • Amazon.com Inc (AMZN), Est. EPS $1.14
    • Mastercard Incorporated (MA), Est. EPS $3.69

    S&P 500 tests new record highs, supported by the earnings story

    The S&P 500 continues to scale fresh record highs, primarily due to data showing resilient economic growth, the prospect of progressive interest rate cuts, and the higher odds of a Donald Trump victory in the Presidential election and subsequent deficit funded tax cuts. The earnings story is also contributing marginally to positive sentiment amid expectations of strong earnings growth in upcoming quarters.

    From a technical perspective, the S&P 500 remains in an uptrend, with the index probing fresh record highs this week. The most immediate level of resistance will be the markets recent all time high at 5860. Meanwhile, on the down side, 5800 is a psychologically significant level, with another short-term support/resistance level at 5766.

    Source: Trading View

    Past performance is not a reliable indicator of future results

    References

    Related topics

    #Dollar (USD) #S&P 500 (US500) #Economic news

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    The difference between trading assets and CFDs
    The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
    You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
    CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
    CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
    Capital Com is an execution-only service provider. The material provided in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents and has not been prepared in accordance with the legal requirements designed to promote investment research independence. While the information in this communication, or on which this communication is based, has been obtained from sources that Capital.com believes to be reliable and accurate, it has not undergone independent verification. No representation or warranty, whether expressed or implied, is made as to the accuracy or completeness of any information obtained from third parties. If you rely on the information on this page, then you do so entirely at your own risk.

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