US open: Stocks steady as corporate earnings move to centre stage

US futures

Dow futures -0.01 % at 34580

S&P futures -0.02% at 4437

Nasdaq futures -0.08% at 13906

In Europe

FTSE -0.24% at 7594

Dax +0.11% at 14077

Euro Stoxx -0.25% at 3822

Learn more about trading indices

Corporate earnings and housing data

US stocks are set for a muted start to trade with earnings in focus and a quiet economic calendar after a quiet session on Monday.

US indices have been on the back foot across recent weeks amid rising expectations of a more hawkish Federal Reserve and amid uncertainty surrounding the Ukraine war, which appears to have entered a new phase with Russia attacking hard in the east.

Investors will now focus on corporate earnings to see whether the concerns in the market are being translated into weakness in quarterly results.

On the economic calendar, US housing data suggested that the US housing market remained solid with building permits rising to 1.873 million, ahead of forecasts and housing starts rose 1.793 million, also ahead of expectations.

In corporate news:

Earnings seasons ramp up a gear today with Johnson & Johnson, Hasbro, and the Travelers Companies reporting earnings ahead of the open.

Netflix is due to report after the close and comes after weak subscriber growth forecasts last quarter and as attention shifts to content spending as competition heats up. Data released today in the UK showed that streaming subscription cancellations were rising as the squeeze on disposable income mounts.

Where next for the S&P500?

The S&P500 ran into resistance at 4623 and rebounded lower falling below the 50 & 100 sma. The losses appear to have run out of steam and the price is consolidating between 4360 last week’s low and 4410 the 50 sma. The RSI is also just south of 50 suggesting consolidation. Buyers will want to see a move over 4410 to expose the 100 sma and round number at 4500. Sellers will look for a move below 4360 to open the door to 4285.

FX markets USD pares gains, JPY crumbles

USD is holding steady, paring earlier gains. US dollar index had rallied earlier extending gains from yesterday after Fed James Bullard talked of a rate hike of 75 bp as a possibility for May but not a base case scenario.

USD/JPY rose to a 20-year high above 128.00 on central bank divergence as the BoJ remains firmly dovish. Rising energy costs are also hurting the outlook for Japan.

EUR/USD is edging higher back towards 1.08 in quiet trade. The USD is driving the pair in otherwise quiet trade with not high-impacting EZ data.

GBP/USD +0.03% at 1.3011

EUR/USD -0.14% at 1.0874

Oil remains volatile

Oil prices edge lower after gains yesterday as volatility in the oil market shows no signs of easing. Concerns over Russian supply remain, and the outage in Libya are keeping prices supported above $100 per barrel. China remains in lockdown, with some signs of easing in restrictions.

However, the GDP downward revision from the World Bank by almost 1% and expectations that the IMF will follow suit is hurting the demand outlook today, dragging on prices. Weak global growth would mean weaker demand.

WTI crude trades -2.27% at $104.98

Brent trades -2.5% at $109.74

Learn more about trading oil here.

From time to time, StoneX Financial Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. 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. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.

City Index is a trading name of StoneX Financial Pty Ltd.

The material provided herein is general in nature and does not take into account your objectives, financial situation or needs.

While every care has been taken in preparing this material, we do not provide any representation or warranty (express or implied) with respect to its completeness or accuracy. This is not an invitation or an offer to invest nor is it a recommendation to buy or sell investments.

StoneX recommends you to seek independent financial and legal advice before making any financial investment decision. Trading CFDs and FX on margin carries a higher level of risk, and may not be suitable for all investors. The possibility exists that you could lose more than your initial investment further CFD investors do not own or have any rights to the underlying assets.

It is important you consider our Financial Services Guide and Product Disclosure Statement (PDS) available at www.cityindex.com/en-au/terms-and-policies/, before deciding to acquire or hold our products. As a part of our market risk management, we may take the opposite side of your trade. Our Target Market Determination (TMD) is also available at www.cityindex.com/en-au/terms-and-policies/.

StoneX Financial Pty Ltd, Suite 28.01, 264 George Street, Sydney, NSW 2000 (ACN 141 774 727, AFSL 345646) is the CFD issuer and our products are traded off exchange.