Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

US Profit Reporting Season Now Front And Centre

Published 14/07/2017, 10:36 am
AUD/USD
-
DXY
-
TIOc1
-

Originally published by CMC Markets

Recent stock market action has seen increased volatility in some market sectors and this was in evidence over the past 24 hours. After suffering brief bouts of profit taking, the US info tech and Australian healthcare sectors have proven difficult to resist for trigger happy investors in search of relative value.

The US profit reporting season looks likely to be a key market driver over the next couple of weeks. Full valuations suggest that the market is yet again going into this reporting season anticipating results to outperform consensus analyst expectations.

Another good US profit reporting season will be very supportive for stock markets and continue the current bias against being too trigger happy in response to potential risk events. However, full valuations mean there’s not a lot of margin for error. Stocks that underperform are likely to be dealt with harshly

Three major US banks will report profits tonight and may set the tone for the international finance sector following a rally by financial sector stocks in US trading last night.

Iron ore stocks are getting good news in terms of both price and volume. The spot iron ore price rose again yesterday while China’s imports for the 6 months to June were up 9.3% on last year. The question for investors is whether this will be about as good as it gets, given the strong gains in share prices over recent weeks.

Good news on iron ore helped a strong session for the Australian dollar which rallied against most major currencies. Against US dollar it is pushing through trend line resistance that has contained it since April last year and into a resistance zone that extends up to about .7835. This means next week could be a key week for Aussie dollar, with a lot of news and data releases on the calendar. Key amongst these could be the employment data. Despite signs of ongoing strength and good employment conditions in business indicators like NAB’s Business Conditions Index, Australia’s notoriously volatile employment data is due a bit of mean reversion.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.