CMC Markets

Initial losses in US stocks at the hands of weaker than expected retail sales growth were bought up by eager traders yesterday, keen to buy into a generally healthy set of quarterly earnings reports.

March retail sales missed expectations but it was still the best result in months so once the dust had settled; a 0.9% monthly rise was seen as the first signs of a spring rebound in the US economy.

Volatility in financial markets, especially in oil and FX, helped trading revenues at JP Morgan in the first quarter and lifted hopes that financials could be one of the saving graces of an earnings season expected to be blighted the rise in the US dollar.

The first indication of the impact of the dollar-rally on the profitability of US multinationals came from Johnson & Johnson (NYSE:JNJ), which reported an over 12% drop in international sales. The pharmaceutical and consumer products giant did still manage to beat lowered expectations, and the drop in the dollar after the retail sales report, numbed the pain across broader indices.

Shares of Intel (NASDAQ:INTC) and CSX Corp (NYSE:CSX) are expected to lead the charge to a higher open on Wednesday, after respectively meeting and beating analyst expectations for quarterly earnings. Intel forecasted flat revenue growth for the year but investors cheered a cut in capex spending that should boost the bottom line amidst a slowing PC market.

There is a flood of earnings expected from financial companies before the open with Bank of America (NYSE:BAC), US Bancorp (NYSE:USB), BlackRock Inc (NYSE:BLK), The Charles Schwab Corporation (NYSE:SCHW) and PNC Financial Services Group Inc (NYSE:PNC) all reporting alongside Delta Air Lines Inc (NYSE:DAL). After the bell, reports are expected from Netflix (NASDAQ:NFLX) and Kinder Morgan Inc (NYSE:KMI).

Futures suggest the:

S&P 500 will open 5 points higher at 2,100 with the

Dow Jones expected to open 38 points higher at 18,074 and the

Nasdaq 100 14 points higher at 4,411.

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.

Original Post