US stocks pulled back from record highs as traders remain cautious ahead of earnings season and as trade-war uncertainty remains high. Citigroup (NYSE:C) kicks off earnings season with a mixed earnings report that had shares go through a rollercoaster ride. Citigroup posted significant strength in the consumer division, while trading fell about 5% when you back at the gain made with the stake in Tradeweb. Tuesday we will see JPMorgan (NYSE:JPM), Goldman Sachs (NYSE:GS) and Wells Fargo (NYSE:WFC) report results and if the consumer remains strong, that could be a good sign for US equities. Citi’s results may indicate that we could see weaker FICC and equities trading from the other major banks.
Gold
Gold prices continue to consolidate ahead of $1,400 an ounce as investors await trade-war updates and to see if second-quarter earnings will see drastic cuts to guidance as trade uncertainty lingers.
Oil
Crude prices softened as oil companies returned workers to offshore platforms as the effects of Hurricane Barry subsided. With no major damage done, oil output will start coming back online and we could see crude prices pare back some of last week’s gains. Oil’s recent rally could resume this week if we continue to see strong earnings results that paint a positive picture for the US consumer and if we continue to see shrinking US stockpiles. Current expectations are for crude oil inventories to decline by 3.7 million barrels, down from last weeks near 10-million-barrel draw.
Bitcoin
Treasury Secretary Mnuchin delivered a cryptocurrency press conference that reiterated the Trump administration’s concerns over digital coins, specifically calling out Facebook’s Libra and Bitcoin (BitfinexUSD). Mnuchin noted he will discuss cryptocurrencies at the G7 meeting this week. Following the presser, Bitcoin recovered some of its earlier losses as Mnuchin did not unveil any new regulatory actions that would not severely discourage cryptocurrencies.
