After a receiving a bruising yesterday, US markets look to open mixed with investors on edge before the Fed minutes and a number of corporate earnings reports as concern builds over slowing global growth alongside the likelihood of the Federal Reserve hiking rates in the not too distant future.
Futures suggest:
The Dow Jones will open 4 points lower at 16,715
S&P 500 expected to open 1 point lower at 1,934
NASDAQ Composite 2 points higher at 3,960
US markets have not had a sizeable correction all year and investors have been climbing the wall of worry over geopolitics, global growth and Fed policy.
The improving US economy means the Fed should really be edging towards a rate hike in the not too distant future. The worry for investors is that while the Fed has to raise rate in the US based on the performance of the US economy, increasingly international US corporations need global growth to maintain the same rate of growth in profits. The IMF downgrade to global growth forecasts yesterday just served to highlight what was already known.
Aluminium producer Alcoa Inc (NYSE:AA) is expected to more than double earnings from the year ago period to 23c per share on revenue of $5.85bn, this is in part thanks to increased aluminium demand from carmakers.
Big box discounter Costco (NASDAQ:COST) has beaten earnings estimates of $1.52 per share earning $1.58 per share on revenue of $35.52bn, same-store sales rose 6%.
Monsanto Company (NYSE:MON) is expected to report a loss of -$0.24c per share on revenue of $2.42bn
CMC Markets is an execution only provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed.
No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.