US Futures Higher as Attention Shifts to Earnings

There’s been no shortage of catalysts for the markets over the last few weeks, with the Federal Reserve and Donald Trump in particular keeping things interesting, and now we can add corporate earnings season to the mix as the Dow continues to struggle to break the psychological 20,000 barrier.

OANDA fxTrade Advanced Charting Platform

Earnings season has possibly come just at the right time as the Trump trade appears to have been exhausted in the absence of any details on his stimulus plans. The Dow has come extremely close to breaking above 20,000 on a number of occasions but it would appear just the idea of ambitious spending and tax cutting plans is not quite enough to take us to the next level. Perfect time then for earnings season, an opportunity for corporates to convince us that these levels are built on strong foundations, not just the prospect of fiscal stimulus.

EUR/USD – Euro Edges Up Ahead of US Retail Sales, Consumer Confidence

Earnings season gets underway today with a number of banks reporting on the fourth quarter. Among these are JP Morgan, Wells Fargo and Bank of America which should offer great insight into how the financials are expected to perform in the coming weeks.

Dollar sell off abates

We’ll also get some economic data from the US today with retail sales for December being released. This continues to be a massively important month for retailers and could tell us a lot about just how much consumer spending habits are actually improving now that wage growth is improving, albeit gradually. The consumer is a hugely important part of the US economy and good numbers here will be extremely welcome as the new administration enters the White House and investors brace for what could be a wild ride.

For a look at all of today’s economic events, check out our economic calendar.

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.