US Stock Futures Remain Flat as Investors Brace for Earnings Week
US stock futures were mostly unchanged on Monday morning, with investors gearing up for an eventful week of corporate earnings and economic reports. On Friday, the S&P 500 and Dow Jones Industrial Average reached record highs, thanks to strong results from major Wall Street banks JPMorgan Chase (NYSE: JPM) and Wells Fargo (NYSE: WFC), as well as asset manager BlackRock (NYSE: BLK), which reported an all-time high in assets under management.
These better-than-expected earnings helped bolster confidence in a “soft landing” scenario, where high interest rates successfully curb inflation without triggering a major economic downturn. Analysts at Vital Knowledge noted that these returns have reassured investors that the US economy could be on a stable path.
Earnings Season Ramps Up
This week, more financial giants are set to report earnings, including Bank of America and Citigroup on Tuesday. Netflix will also release its highly anticipated earnings report after the market closes on Thursday. Investors will pay close attention to Netflix’s subscriber numbers, looking for insights into consumer spending trends.
Analysts at UBS highlighted that corporate profit growth for large-cap companies has remained solid, a key factor in supporting stock valuations that are currently above historical averages. With the Federal Reserve beginning its rate-cutting cycle, lower interest rates should provide additional support for the economy through reduced credit costs for consumers and businesses.
Boeing Job Cuts on the Horizon
Boeing is expected to provide more details on its plan to cut around 17,000 jobs globally, representing about 10% of its workforce. Reports suggest that the cuts will affect executives, managers, and staff across various divisions. Boeing is also expected to delay deliveries of its 777X plane and incur losses of $5 billion in the third quarter.
Boeing CEO Kelly Ortberg stated that these “tough decisions” are necessary to improve the company’s performance and maintain long-term competitiveness, especially as it grapples with a prolonged strike and rising costs. Analysts predict the company will need to secure $10 billion in financing to stabilize its financial position.
Chinese Stocks Rise Amid Weak Stimulus and Inflation Data
Chinese stock markets shrugged off initial volatility, with the Shanghai Shenzhen CSI 300 and Shanghai Compositeindexes closing higher by 1.9% and 2.1%, respectively. This came despite underwhelming government stimulus measures and weaker-than-expected inflation data. In contrast, Hong Kong’s Hang Seng index fell 0.1%, recovering from a steeper decline earlier in the day.
China’s finance ministry announced new fiscal stimulus plans but provided limited details on their scope and timing. Meanwhile, weaker consumer and factory price inflation data further intensified calls for additional economic support from Beijing.
Oil Prices Decline Amid China Concerns
Oil prices dropped significantly on Monday due to concerns about the health of China’s economy. By early morning, Brent crude fell 1.6% to $77.78 per barrel, while WTI futures dropped 1.7% to $74.30 per barrel. The release of weak inflation data from China, the world’s largest oil importer, sparked doubts about future demand.
Traders will also be watching for the OPEC monthly report, due later in the day, for further insights on global oil supply, as well as monitoring developments in the Middle East conflict.
PLTR
ER is 11/4
All indicators are Very Bullish
AAPL
ER is 10/31
$225 Support / $231 Resistance
Overall NEUTRAL (chop)
DOCU
ER is 12/5
All indicators Bullish but may be turning
Bearish Harami on 10/11
DKNG
ER is 10/31
All indicators Bullish
$37.40 Support/ $39.80 Resistance
Bullish Engulfing on 10/11
TSLA
ER is 10/23
All indicators were Neutral
Should gap up Monday
$215.60 Support / $225 Resistance
BA
ER is 10/23
All indicators Bearish
$149 Support/ $153.40 Resistance
NFLX
ER is 10/17
Mixed Signals from Indicators
$720 is Support/ $736 is Resistance
Upward trend is still in tact
NQ Analysis- Last week we stated how 20,255 continues to be the main level to monitor. If buyers can show strength through this level, price can target 20500, 20800, and 21000.”Price managed to finally resolve from the 20,255 weekly pivot consolidation, though the first weekly upside level at 20500 kept a lid on price.
For this coming week, the main focus will be whether buyers can show a continuation move up and through the 20500/530 level of interest, which marks the high of the intermediate-term structure. If buyers can trigger a breakout and show acceptance above 20500, price can target 20800, 21000, and the all-time high near 21200. If sellers continue to defend the 20500/530 zone, price can retest 20255, 19850 (intermediate-term range low), and 19550 where buyers can be expected to step in.
Upside levels of interest: 20800, 21000, 21200 (ATH)
Downside levels of interest: 20255, 19850, 19550
Notable Economic Data
- Thursday: Jobless Claims
Notable Earnings
- Tuesday: BAC, C
- Thursday: TSM, NFLX
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