Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Top 5 Things to Know in the Market on Tuesday

EconomyOct 15, 2019 06:22AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

Investing.com -- Earnings season kicks into gear with JPMorgan, Goldman Sachs, Citi and Wells Fargo all reporting before the bell. Meanwhile, Asian and European markets get a boost from some more positive sounds out of Beijing and Brussels, while Turkey's financial markets shrug off "obliteration" from President Trump's sanctions. Here's what you need to know in financial markets on Tuesday, 15th October.

1. A barrage of bank earnings

The third-quarter earnings season swings into gear big time as Wall Street’s big banks report their numbers. JPMorgan Chase (NYSE:JPM), Citigroup (NYSE:C), Wells Fargo (NYSE:WFC) and Goldman Sachs (NYSE:GS) are all expected to report before the bell.

Charles Schwab (NYSE:SCHW) and Blackrock (NYSE:BLK), meanwhile, will also report, only a week after the U.S.’s biggest retail brokerages all joined a race to the bottom by cutting commissions on most trades in U.S. financial instruments to zero.

Johnson & Johnson (NYSE:JNJ) is also due to report, while UnitedHealth (NYSE:UNH) got the ball rolling with revenue and earnings slightly ahead of expectations.

2. Chinese, European economies stutter

China’s economy continued to struggle, with fresh data showing producer prices dropping 1.2% on the year in September. That’s the biggest drop since 2016 and a further indication of factories being hit by the country’s trade dispute with the U.S. Consumer prices, meanwhile, rose at their highest rate in six years, thanks largely to the continued scarcity of pork due to the Asian swine flu epidemic.

Beijing has instructed its central bank to keep credit to companies flowing to cope with the slowdown. Total social financing, the country’s broadest measure of credit, rose much faster than expectations in September, while yuan lending rose 12.5% on the year.

In Europe, meanwhile, Brexit concerns finally caught up with the U.K.’s labor market, causing employment to fall by 56,000 in the three months through August. Average earnings growth (including bonuses) also slowed from a multi-year high. Germany’s ZEW index, the first big sentiment indicator of the month out of Europe, fell by less than expected, although the current conditions subindex hit its lowest level since 2010.

3. Stocks set to open higher

U.S. stock markets are indicated higher ahead of the opening shots of an earnings season which is expected to see the majority of companies report declining profits in year-on-year terms.

By 6:15 AM ET (1015 GMT), Dow futures were up 89 points or 0.3%, while S&P 500 Futures and Nasdaq 100 futures were also up 0.3%.

Asian and European markets were supported by a confirmation from China that the U.S.’s account of Friday’s handshake deal on trade was accurate, while European markets also benefited from comments by the EU’s top Brexit negotiator Michel Barnier, who said that a deal to avoid a disorderly Brexit at this week’s summit with the U.K. was still possible, if difficult.

4. Turkish markets recover after mild sanctions

Turkey’s currency and stock and bond markets bounced after President Donald Trump failed to follow through on threats to “obliterate” its economy with sanctions if it stepped out of line in Syria.

The U.S. doubled tariffs on imports of steel from Turkey to 50%, and applied sanctions to several Turkish officials, including the defense, energy and interior ministers, as well as the Turkish government’s defence and energy departments.

The lira strengthened as much as 1% before paring gains to 0.2%, trading at 5.9142 per dollar as of 11:48 a.m. in Istanbul. Turkey’s main stock index climbed 1.5%. The gains only partly unwound losses made in anticipation of the U.S.’s measures, however.

The U.S. administration is calling for a ceasefire in Syria, given the heightened risk of direct clashes between Turkish forces and those of President Assad, who has temporarily reconciled himself with the Kurdish rebels targeted by Ankara.

5. Warren's chance to stake her claim

Democratic presidential hopefuls hold their latest televised debate at 8 PM ET (2200 GMT). It's an opportunity for Sen. Elizabeth Warren to cement her recent gains in the polls at the expense of former vice-president Joe Biden and Bernie Sanders, her most formidable rival on the left of the party.

Biden has reportedly warned other candidates against taking up President Trump's accusations of wrong-doing by his son Hunter Biden, who this week said he would no longer serve on the boards of any foreign company.

According to the New York Times, Biden's lead over Warren has shrunk to 3 points. Warren has now leapfrogged Sanders into 2nd place polling an average 23%, compared to Biden's 26% and Sanders' 16%.

Top 5 Things to Know in the Market on Tuesday
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with 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
  • 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.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. 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 (2)
Spd Dem
TradingFutures Oct 15, 2019 8:18AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Great sense of humor.
Lucas Atilano
Lucas Atilano Oct 15, 2019 6:29AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Warren is the capitalist we need!
dhdh bdbd
dhdh bdbd Oct 15, 2019 6:29AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
what are you drinking??
Che Tran
Che Tran Oct 15, 2019 6:29AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
dhdh not the kool-aid like you are
 
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