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US Market Outlook 25 Jul 2018

Posted by Tim Sholl on 25-Jul-2018 23:26:33

Investors continue to be cautious about the outlook for the economy and future corporate earnings with trade issues the focus. Corporate earnings are coming out as or better than expected in most cases but they are also unclear on the outlook into next year and also reporting that input costs are rising because of the introduced tariffs and the rising cost of oil is pushing up transport costs. This is crimping margins and companies are struggling with either reducing profits or trying to raise prices.

Stock indices are mixed with the Dow looking to open at 25160 down 0.30% , the S&P500 at 2816 down 0.10% and the Nasdaq looking to open at 7404 flat. Today and Thursday are considered the busiest days for Q2 earnings reports. In FX markets the US dollar is looking weak with EUR at 1.1708 up 0.23% , the GBP at 1.3172 up 0.24% , and the JPY stronger at 110.97 down 0.21%. Bond yields are flat with US10 at 2.94% , UK10 at 1.27% , and GE10 at 0.39%.

ECB interest rate meeting is on Thursday with expectations for no change in policy or stimulus settings.

US GDP is due out on Friday with market looking for 3.8-4.0% y/y number.

 

 

Topics: Trading, Market News, US Market Outlook