US open: Futures point to a mixed start ahead of Tesla earnings
Fiona Cincotta April 26, 2021 8:42 PM
US futures point to a quietly mixed start ahead of a very busy week for earnings.
Dow futures +0.1% at 34099
S&P futures +0.04% at 4180
Nasdaq futures -0.02% at 13929
FTSE +0.4% at 6960
Dax -0.06% at 15286
Euro Stoxx +0.1% at 4019
US stocks point to a mixed open
US futures are pointing to a relatively quiet open ahead of a very busy week, which sees a slew of earning releases and the Fed’s rate decision.
The Nasdaq is just coming under a bit of pressure heading towards the open as treasury yields tick slightly higher, undermining growth stocks and supporting the cyclicals on the Dow.
Europe to allow US tourists
Covid news has been a little more upbeat with EC President Ursula von der Leyen saying that fully vaccinated Americans will be allowed into Europe this summer. European travel stocks have rallied on the back od the news, with a similar reaction expected in the US market.
Commodities in focus
Commodity prices are surging higher. Copper hit its highest level in a decade. Copper prices have been on the rise in recent weeks, not just on the back of reopening optimism but also in anticipation of strong demand from the car industry, amid an acceleration towards electric vehicles. Furthermore the front runner in the Peruvian elections is threatening to nationalise mining.
Tesla to report
Tesla is due to report after the close. Tesla is expected to report EPS od $0.77c on revenue of $10.42 billion, up 66% from a year ago. The earnings come after the stock surged 740% in 2020 but is up just 3% so far this year amid a series of PR issues in both China and Texas and as competition from other automobile firms heats up.
Where next for the S&P 500?
After briefly touching a fresh all time high time high on Friday the S&P 500 eased back. It trades marginally higher on the open. The technical picture remains bullish for the index with the 4200 potentially being hit in the near term, ahead of 4250. Support can be seen at 4150 the 50 EMA.
FX – Euro stumbles on weaker German IFO data
The greenback trades under 91.00 at around an 8-week low ahead of the FOMC later this week.
GBP/USD is capitalising on the weaker US Dollar, edging higher amid hopes of a vaccine led recovery. BoE policymakers’ optimism is adding to the upbeat mood surrounding the sterling.
EUR/USD trades lower after disappointing German IFO business sentiment data with 96.8. This was a slight improvement from March’s 96.6 but was short of the 97.8 forecast. Business morale slipped amid the resurgence of covid and supply issues of industrial components.
GBP/USD +0.05% at 1.3880
EUR/USD -0.1% at 1.2083
Oil extends last week’s losses on covid fears
Both oil benchmarks lost ground in the previous week and are seen extending declines on Monday amid a worsening covid crisis in India and Japan. The world’s third and fourth largest importers of oil have both seen lockdown restrictions tighten which is softening the demand outlook for oil.
On Sunday, Japan announced a state of emergency in Tokyo, Osaka and two other regions. India recorded surging covid numbers, which reached record levels for a fifth straight day. Covid cases hit 350,000 and the lockdown in New Delhi has been extended. Oil buyers will want to see some floor under the covid crisis in order to move meaningfully higher.
US crude trades -1.3% at $61.32
Brent trades -1.4% at $64.58
14:00 ECB’s Lane speech
15:30 US Dallas Fed manufacturing business index
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.