Monday 17 October 2016

There's a lot that may spin US Markets in Week Ahead

Corporate earnings, economic reports and Fed speakers could all challenge markets in the week ahead, but traders will be on guard for the latest catalyst — the potential bombshells coming from the presidential election. Earnings are expected from about 80 S&P companies, including Goldman Sachs, Microsoft, McDonald's and American Express. 

 

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According to Thomson Reuters, earnings for the S&P 500 companies are expected to be nearly flat for the third quarter — down just 0.4 percent after a year of negative earnings reports. Data in the coming week includes industrial production Monday, the Fed's beige book on Wednesday, but most importantly CPI consumer inflation data on Tuesday, after producer prices perked up more than expected in September. 

 

Stocks in the past week were lower, with the S&P 500 down nearly 1 percent at 2,132, the Dow down 0.6 percent at 18.138, and the Nasdaq off 1.5 percent at 5,214. In the past week, the market became vulnerable for the first time to the idea that Donald Trump's controversial behavior and sparring with Republicans could hurt GOP Congressional candidates.

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