US open: Stocks rise on upbeat earnings, tech leads the way

US stocks are set to open higher amid upbeat earnings. Tesla joins the $1 trillion club.

USA (2)

US futures

Dow futures +0.23% at 35840

S&P futures +0.3% at 4583

Nasdaq futures +0.54% at 15600

In Europe

FTSE +0.65% at 7273

Dax +0.94% at 15760

Euro Stoxx +0.85% at 44225

Learn more about trading indices

Stocks look to earnings

US stocks are set to open on the front foot with the tech heavy Nasdaq leading the charge. Upbeat earnings expected to boost the mood, in addition to Tesla making the $1 trillion milestone.

Wall Street earnings are once again sufficiently strong to overshadow any concerns over inflation ahead of a slew of central bank meetings over the coming 10 days.

After gaining over 12% in the previous session on the back of a 100,000 EV order by Hertz, the EV maker was just 0.1% lower pre-market today. Facebook is also heading higher pre-market after not only reporting solid user growth but also a buyback promise of $50 billion more in stock. This sufficiently distracted from the fact that revenue growth at the social media giant had slowed to 35%  year on year, down from 50% earlier in the year.

Big tech is likely to remain firmly in focus with earnings from Microsoft and Alphabet due after the close.

On the data front US consumer confidence could dampen upbeat spirits if the reading comes in lower than forecast. Consumer morale is expected to decline again in October which will mark the fourth straight month of deteriorating sentiment.

Where next for the Dow Jones Index?

After breaking out at the end of last week the Dow is set to climb higher. There are few signs on the chart that this move higher has run its path. Support can be seen at 35535 and 35000 – a move below here could negate the near term up trend. It would take a move below 34125 for sellers to gain momentum.

Dow chart

FX – USD pares gains GBP rallies

The US Dollar pared earlier gains as it traced US treasury yields lower. This could well be the calm before the storm as investors wait for central bank announcements from a slew of banks including the BoC, the BoJ and the ECB this week, followed by the RBA, the Fed and the BoE next week.

GBP/USD trades higher, hitting a 3 day peak above 1.38 following on from upbeat CBI retail sales distributive trends. The CBI report revealed that the sales index surged to 30, up from 11 in September and well ahead of the 13 expected. GBP jumped on the news.

GBP/USD +0.2% at 1.3793

EUR/USD +0.07% at 1.1616

Oil pares losses

After starting the session in the red, oil prices have pared earlier losses and continues to trade around multi year highs. Whilst there are some potential headwinds building the price remains under pinned by strong demand in the US, the world’s largest consumer and tight supply.

Iran and the West are entering a crucial stage in talks. However, we’ve been here before. Any agreement between Iran and the West which would see the sanctions removed on Iranian oil is unlikely to ne imminent.

API crude stock pile data is due to be released late today ahead of EIA data tomorrow.

WTI crude trades +0.18% at $83.60

Brent trades +0.12% at $85.31

Learn more about trading oil here.

 

Looking ahead

14:00 US New Home Sales

15:00 US Consumer Confidence

21:30 API Weekly Crude Stock Piles

 

 

How to trade with FOREX.com

Follow these easy steps to start trading with FOREX.com today:

  1. Open a Forex.com account, or log-in if you’re already a customer.
  2. Search for the market you want to trade in our award-winning platform.
  3. Choose your position and size, and your stop and limit levels.
  4. 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.