US open: Wall Street opens higher ahead of Facebook earnings, oil jumps
Fiona Cincotta October 25, 2021 9:41 AM
US stocks look set to open higher ahead of a busy week for earnings with Facebook due to release earnings after the close. Inflation concerns will remain in focus as oil prices jump.
Dow futures +0.13% at 35715
S&P futures +0.2% at 4555
Nasdaq futures +0.4% at 15416
FTSE +0.15% at 7226
Dax +0.3% at 15600
Euro Stoxx +0.15% at 4196
Stocks look to earnings
US stocks are set for a mildly higher open on Monday as investors readied themselves for a slew of big earnings releases this week. Big tech heavy weights are set to report this week kicking off with Facebook after the close today.
Even before big tech earnings get under the tech sector is in focus with PayPal up over 5%. Investors breathed a sigh of relief on the news that the payments company has ruled out pursuing Pinterest at this time. Meanwhile the latter slumped 15% on the prospect of the deal not going ahead.
Inflation concerns will continue to linger particularly with oil prices on the rise at multi year highs and following Jerome Powell’s comments on Friday. So far share prices have remained resilient in the face of rising price pressures with the S&P and the Dow hitting record highs. However, signs of rising cost pressures hurting guidance could put the brakes on further moves higher.
Where next for the S&P?
The S&P is bracing for fresh record highs above 4550. The 50 sma crossed above the 100 sma on the 4 hour chart. However, the RSI is in overbought territory so there could be some consolidation at these levels or an easing back before fresh record highs. A move below 4500 could negate the near-term uptrend.
FX – USD rebounds, EUR falls as German business sentiment deteriorates
The US Dollar is rebounding at the start of the week after dropping to a monthly low on Friday. Fed Chair Jerome Powell had all but confirmed the tapering of bond purchases but pushed back on the prospect of a rate hike. The pickup in the US Dollar is receiving a helping had from the weaker Euro.
EUR/USD is heading lower, paring gains from the previous week. German business sentiment in October as supply chain bottlenecks clouded the near-term outlook. The IFO index fell to 97.7 from 98.9 in September, marking the 4th straight month of declines.
GBP/USD +0.09% at 1.3770
EUR/USD -0.21% at 1.1620
Oil eases, uptrend remains intact
Oil prices are rising higher, adding to gains from the previous week and hitting multi year highs. Tight supply keeps oil prices buoyant as demand continues to rise as economies reopen. According to Goldman Sachs oil demand is back up at 99 million bpd where it was pre-pandemic. The investment bank still sees oil trading above $90 sooner rather than later. Analyst as Goldman’s consider that the switch from oil to gas amid ongoing energy crisis is boosting demand by around $1 million barrels per day.
WTI crude trades +0.9% at $84.37
Brent trades +0.7% at $85.41
14:45 Dallas Fed Manufacturing Business Index
How to trade with FOREX.com
Follow these easy steps to start trading with FOREX.com today:
- Open a Forex.com account, or log-in if you’re already a customer.
- Search for the market you want to trade in our award-winning platform.
- Choose your position and size, and your stop and limit levels.
- Place the trade.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.