Breaking News
Black Friday SALE: Up to 54% off InvestingPro! Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Opening Bell: Earnings Boost Futures But Equities Remain Choppy; Dollar Firms

By Investing.com (Pinchas Cohen/Investing.com)Market OverviewOct 28, 2021 08:41AM ET
www.investing.com/analysis/opening-bell-earnings-boost-futures-but-equities-remain-choppy-dollar-firms-200606626
Opening Bell: Earnings Boost Futures But Equities Remain Choppy; Dollar Firms
By Investing.com (Pinchas Cohen/Investing.com)   |  Oct 28, 2021 08:41AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
  • Positive earnings offset ongoing market risks
  • Long-dated U.S. bonds rise more than short-dated notes on inflation concerns
  • Crude oil fluctuates

Key Events

US futures contracts for the Dow Jones Futures, S&P 500, NASDAQ and Russell 2000 inched higher on Thursday, with European shares marginally in the green after Wednesday's choppy US session. Markets are pricing in earnings reports as a gauge for the sustainability of the economic recovery, even as such threats as inflation, shrinking stimulus, COVID and China risks hover in the background.

Though all four contracts on the major US indices were up, growth sectors were leading, as NASDAQ 100 futures outperformed. Contracts on the Russell 2000 were the underperformers. 

The dollar gained and oil's slump continued.

Global Financial Affairs

This morning, the STOXX Europe 600 Index rose slightly, but remains relatively flat. Belgium-based multinational brewer and beverage maker Anheuser Busch Inbev (BR:ABI)  and Swiss travel retailer Dufry (SIX:DUFN), showed that despite inflation, some companies continue to beat expectations.

On the other hand, Royal Dutch Shell (LON:RDSa) missed expectations as the company accelerated its pace to cut carbon emissions. Shares of the oil major dropped 3%.

During the Asia session, most regional benchmarks closed lower. China's Shanghai Composite was the biggest laggard, down 1.25% as worries about the country's troubled property development sector pressured markets, ahead of a looming debt payment deadline for Evergrande (HK:3333). On the other side of the regional market spectrum, South Korea's KOSPI and Hong Kong's Hang Seng outperformed, both down only 0.5%

On Wednesday, stocks on Wall Street retreated from all-time highs. The S&P 500 Index and Dow Jones Industrial Average fell while the NASDAQ Composite closed flat after posting all-time highs on Tuesday.

The NASDAQ 100 hit an all-time intraday high but barely managed to finish with a gain. Still, it was the only major index to finish in positive territory, as Alphabet (NASDAQ:GOOGL) and Microsoft (NASDAQ:MSFT) rose to records after beating quarterly earnings estimates.

Electric vehicle maker Tesla (NASDAQ:TSLA) locked in the highest closing price in its history, presumably still benefitting from the excitement surrounding its deal with Hertz (OTC:HTZZ).

The Russell 2000 was the session underperformer, -1.9%, the sharpest downturn for the small cap index since September.

Long-term Treasuries, including the 10-year note resumed outperforming shorter-dated notes as investors continued searching for protection against inflation.

10Y-2Y Spread Daily
10Y-2Y Spread Daily

As can be seen by the yield curve on US Treasuries, 2-year yields have surged compared to rates on the 10-year benchmark, indicating that investors have been moving their capital from shorter-dated bonds to longer-term instruments for safety.

Still, global shares remain near all-time highs thanks to solid earnings this quarter, as profit margins widened despite rampant inflation. It's now up to policymakers to maintain calm in markets and avoid a loss of investor confidence.

All eyes are now on today's ECB policy meeting as well as the US's economic growth via the upcoming GDP print, which is predicted to show economic expansion has slowed. Earlier, the Bank of Japan kept its policy intact.

After earlier declining, the dollar firmed.

Dollar Daily
Dollar Daily

Nevertheless, it's still trapped in congestion, making the current move insignificant.

Gold advanced for a third straight day.

Gold Daily
Gold Daily

Technically, the yellow metal is climbing within a daily rising channel while confronting the resistance of a weekly H&S continuation pattern.

Bitcoin rebounded after a two-day drop, making up for yesterday's losses.

BTC/USD Daily
BTC/USD Daily

This rise may be part of a return move. The price tested the neckline of an H&S top, which pushed the digital coin out of its rising channel. 

Oil gapped down on the daily chart, then pared most of its losses.

Oil 4-Hour Chart
Oil 4-Hour Chart

 On the 4-hour chart, above, WTI may be developing an H&S top.

Up Ahead

  • Germany's Q3 GDP data is released on Friday
  • US PCE Price Index figures are published on Friday as well

Market Moves

Stocks

  • The Stoxx Europe 600 was little changed
  • Futures on the S&P 500 rose 0.2%
  • Futures on the NASDAQ 100 rose 0.2%
  • Futures on the Dow Jones Industrial Average rose 0.2%
  • The MSCI Asia Pacific fell 0.4%
  • The MSCI Emerging Markets Index fell 0.3%

Currencies

  • The Dollar Index was little changed
  • The euro was little changed at $1.1611
  • The Japanese yen rose 0.2% to 113.61 per dollar
  • The offshore yuan was little changed at 6.3931 per dollar
  • The British pound rose 0.2% to $1.3766

Bonds

  • The yield on 10-year Treasuries advanced one basis point to 1.56%
  • Germany's 10-year yield increased three basis points to -0.15%
  • Britain's 10-year yield rose three basis points to 1.01%

Commodities

Opening Bell: Earnings Boost Futures But Equities Remain Choppy; Dollar Firms
 

Related Articles

Jeffrey Halley
B.1.1.529 Infects Asian Markets By Jeffrey Halley - Nov 26, 2021 1

Asian stock markets were under heavy selling pressure with investors spooked by the emergence of a heavily mutated variant of Covid-19 in South Africa, lovingly called...

Opening Bell: Earnings Boost Futures But Equities Remain Choppy; Dollar Firms

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (6)
Richie Pounds
Richie Pounds Oct 31, 2021 2:15PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
hello
Aung Khant
Aung Khant Oct 29, 2021 2:28AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
hello
Tobby Olumba
Tobby Olumba Oct 28, 2021 8:31AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Seems to me that treasury notes need to find higher standards.
Rob Whalen
Rob Whalen Oct 28, 2021 8:12AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
SHIB 🚀
SHADRACK NDONI
SHADRACK NDONI Oct 28, 2021 8:09AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
can this platform help me achieve my goals
SHADRACK NDONI
SHADRACK NDONI Oct 28, 2021 8:09AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
want to be a shareholder in one of the companies
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email