Quarterly updates from Caterpillar and Nvidia yesterday served a fresh blow to sentiment, with equities selling off as a result. The decline was admittedly measured, but the risk is that it’s starting to set the tone for a busy few days of earnings announcements especially amongst industrial heavyweights with the likes of 3M and Xerox amongst today’s highlights. Hopes are also running high that some progress can be seen in the US China trade talks his week – that profit warning from Apple laid bare the fact that the impasse is proving damaging on both sides of the Pacific but again the latest update from Treasury Secretary Mnuchin showed there were still some considerable gaps to bridge.
The US consumer confidence reading for January is set for release shortly after the opening bell so again this could offer some fresh insight. The market is expecting to see a meaningful decline here, but anything more dramatic could again give traders reason to reach for the sell button.
Ahead of the open we’re calling the DOW down 34 at 24494 and the S&P down 3 at 2641.
The information provided here has been produced by third parties and does not reflect the opinion of AxiTrader. AxiTrader has reproduced the information without alteration or verification and does not represent that this material is accurate, current, or complete and it should not be relied upon as such. The Information is not to be construed as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product, or instrument; or to participate in any particular trading strategy. Readers should seek their own advice. Reproduction or redistribution of this information is not permitted.
Soaring US yields trigger the wrecking ball effect as yields become a source of volatility for risk, rather than a source of support