US open Wall Street heads higher on strong earnings blowout data
After a strong start to earnings season yesterday, earnings continue to impress. US retail sales & jobless claims smash forecasts lifting stocks higher.
Share this:
US futures
Dow futures +0.4% at 33900
S&P futures +0.5% at 4150
Nasdaq futures +0.85% at 13934
In Europe
FTSE +0.6% at 6976
Dax +0.18% at 15241
Euro Stoxx +0.3% at 3990
Learn more about trading indices
US stocks charge higher
A strong start to the US earning season is set to send stocks higher on the open. Yesterday US banks reported very strong results which has been replicated by Bank of America today. Citigroup are set to report before the open.
US banks are considered proxies for the US economy, therefore strong earnings boost sentiment lifting the broader market.
Upbeat earnings from PepsiCo and Blackrock are also boosting futures.
Retail sales & jobless claims smash forecasts
In addition to earnings there has been plenty of impressive data to digest indicating that the US economy is firing up. With a strong vaccine rollout in addition to fiscal stimulus and lose monetary policy the recovery is picking up pace.
Retail sales rebounded impressively in March after a weak showing in February. Retail sales jumped 9.8% MoM, up firmly from a -2.2% decline in February and well ahead of forecasts of 5.9%. Improved weather conditions in addition to the disbursement of stimulus checks underpinned sales.
After a disappointing jobless claims report last week this week’s jobs data was a significant improvement.
Jobless claims dropped to a fresh post pandemic low of 576k, against 769k from the previous week and better than the 700k forecast.
Despite the blowout data, US treasury yields are heading lower suggesting investors have bought into the Fed’s low rates for longer mantra.
Where next for the Nasdaq?
The Nasdaq is not trading on the edge of its all time high. The trend is clearly bullish, as it trades above its 20 & 50 EMA. The RSI is not in overbought territory so there could be more upside on the cards. Given that it trades at these levels there aren't many levels to watch. 14000 being a key resistance and then 14100 and 14200 round numbers.
On the flip side, 13590 offers support the 20 EMA on the daily chart, a break below here could negate the uptrend. Beyond here the 50 EMA comes into play at 13200.
FX – US Dollar flat post data, AUD out-performs
The US Dollar is edging lower, tracing yields southwards despite strong data. The Fed’s soothing dovish calls appear to be sinking in.
Both the Pound and the Euro are trading in a muted fashion amid a lack of fresh catalysts.
German inflation data printed in line with forecasts rising 1.7% YoY in March, up from 1.4% in February. CPI rose 0.5% MoM in March, down from 0.7% as the ongoing lockdown restricts price increases.
AUD/USD is outperforming peers boosted by a strong jobs report. Australian job creation beat forecasts in March and unemployment declined to a one year low.
AUD/USD +0.44% at 0.7742
GBP/USD +0.02% at 1.3806
EUR/USD +0.1% at 1.1965
Oil consolidates after strong rally
After surging over 4% in the previous session, oil is consolidating around monthly highs.
Stronger than forecast inventory data combined with demand outlook upgrades by both the EIA and OPEC in the previous session was music to the ears of oil traders.
EIA crude oil stock revealed a 5.9 million barrel draw a significantly deeper draw than the 2.9 million barrels forecast.
Expectations of a strong economic recovery in the US and UK is helping the growth outlook picture. Meanwhile news that Germany is still aiming to have 20% of the population vaccinated by the end of April adds to the positive picture.
US crude trades -0.25% at $63.04
Brent trades -0.2% at $66.24
Learn more about trading oil here.
The complete guide to trading oil markets
Looking ahead
15:00 US business inventories Feb
03:00 China GDP
US futures
Dow futures +0.4% at 33900
S&P futures +0.5% at 4150
Nasdaq futures +0.85% at 13934
In Europe
FTSE +0.6% at 6976
Dax +0.18% at 15241
Euro Stoxx +0.3% at 3990
Learn more about trading indices
US stocks charge higher
A strong start to the US earning season is set to send stocks higher on the open. Yesterday US banks reported very strong results which has been replicated by Bank of America today. Citigroup are set to report before the open.
US banks are considered proxies for the US economy, therefore strong earnings boost sentiment lifting the broader market.
Upbeat earnings from PepsiCo and Blackrock are also boosting futures.
Retail sales & jobless claims smash forecasts
In addition to earnings there has been plenty of impressive data to digest indicating that the US economy is firing up. With a strong vaccine rollout in addition to fiscal stimulus and lose monetary policy the recovery is picking up pace.
Retail sales rebounded impressively in March after a weak showing in February. Retail sales jumped 9.8% MoM, up firmly from a -2.2% decline in February and well ahead of forecasts of 5.9%. Improved weather conditions in addition to the disbursement of stimulus checks underpinned sales.
After a disappointing jobless claims report last week this week’s jobs data was a significant improvement.
Jobless claims dropped to a fresh post pandemic low of 576k, against 769k from the previous week and better than the 700k forecast.
Despite the blowout data, US treasury yields are heading lower suggesting investors have bought into the Fed’s low rates for longer mantra.
Where next for Nasdaq?
The Nasdaq is not trading on the edge of its all time high. The trend is clearly bullish, as it trades above its 20 & 50 EMA. The RSI is not in overbought territory so there could be more upside on the cards. Given that it trades at these levels there aren't many tech levels to watch. 14000 being a key resistance and then 14100 and 14200 round numbers.
On the flip side, 13590 offers support the 20 EMA on the daily chart, a break below here could negate the uptrend. Beyond here the 50 EMA comes into play at 13200.
FX – US Dollar flat post data, AUD out-performs
The US Dollar is edging lower, tracing yields southwards despite strong data. The Fed’s soothing dovish calls appear to be sinking in.
Both the Pound and the Euro are trading in a muted fashion amid a lack of fresh catalysts.
German inflation data printed in line with forecasts rising 1.7% YoY in March, up from 1.4% in February. CPI rose 0.5% MoM in March, down from 0.7% as the ongoing lockdown restricts price increases.
AUD/USD is outperforming peers boosted by a strong jobs report. Australian job creation beat forecasts in March and unemployment declined to a one year low.
AUD/USD +0.24% at 0.7742
GBP/USD +0.02% at 1.3781
EUR/USD -0.1% at 1.1965
Oil consolidates after strong rally
After surging over 4% in the previous session, oil is consolidating around monthly highs.
Stronger than forecast inventory data combined with demand outlook upgrades by both the EIA and OPEC in the previous session was music to the ears of oil traders.
EIA crude oil stock revealed a 5.9 million barrel draw a significantly deeper draw than the 2.9 million barrels forecast.
Expectations of a strong economic recovery in the US and UK is helping the growth outlook picture. Meanwhile news that Germany is still aiming to have 20% of the population vaccinated by the end of April adds to the positive picture.
US crude trades -0.25% at $63.04
Brent trades -0.2% at $66.24
Learn more about trading oil here.
The complete guide to trading oil markets
15:00 US business inventories Feb
03:00 China GDP
The complete CFD trading experience
Award-winning platforms, competitive spreads, low commissions and dedicated support.
We live and breathe the markets and are dedicated to helping traders realise their ambitions as we continue to set the industry bar.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
EUR/USD forecast: Eurozone stagflation risks mount as dollar holds firm ahead of data
The dollar was bouncing back at the time of writing, after it had eased overnight on the back of some weaker-than-expected economic data yesterday which had prompted markets to scale back expectations of an October Fed rate hike. However, with more significant US data due today and Friday, and with oil prices continuing to remain elevated, the dollar’s broader direction remains bullish.
Treasury Yields Lose Momentum as Energy ETF Retreats
The 10-year Treasury yield is testing a resistance zone respected since the 1920s, as bearish RSI divergence signals fading upside momentum.
GBP/USD, Oil Forecast: Two trades to watch 300926
GBP/USD: Can Stronger UK Growth Offset the Dollar’s Advantage? Oil: Supply Recovery Challenges the Geopolitical Premium.
StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation.
StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.