Tuesday, October 20, 2015

US data ahead: Focus on earnings - Scotiabank

FXStreet (Córdoba) - According to Derek Holt, economist at Scotiabank, during the week domestic influences on the US market tone will be largely confined to a heavy week for earnings releases.

Key Quotes:

“No fewer than 119 companies listed on the S&P release earnings over the next week. Some of the key names will include Morgan Stanley, IBM, BoNYM, Yahoo, Boeing, Coca-Cola, GM, eBay, Dow, Eli Lilly, 3M, McDonald’s, Capital One, Microsoft, Amazon.com, AT&T, P&G and State Street.”

“Data risk will be small and confined to housing indicators with housing starts (Tuesday) and existing home sales (Thursday) ahead. Homes newly placed under construction are trending around the highest level since 2007 but remain a far cry from the 2005-06 peak of the cycle. There is a similar story to be told in the resale market, although resale volumes recently retreated from a high point.”

“Three Fed speakers, and probably Richard Fisher, will take to the stage. Not that it will help much since top Fed officials are delivering widely disparate assessments of Fed hike prospects this year.”

“The Fed will monitor some key domestic data into year-end (like jobs, inflation prints, and GDP), watch market developments, and be mindful toward international developments before reaching a decision. At the moment, we characterize our forecast for a hike in December as accompanied by fairly soft conviction that trades off uncertainty against forecast noise and volatility.”
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