News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Oil - US Crude
Wall Street
More View more
Real Time News
  • USD/MXN pushes higher as a long-awaited correction in the US Dollar gets underway. Get your #currencies update from @HathornSabin here:
  • Emotions are often a key driving force behind #FOMO. If left unchecked, they can lead traders to neglect trading plans and exceed comfortable levels of risk. Read on and get your emotions in check here:
  • Join analyst @DavidJSong at 6:30 PM ET/10:30 PM GMT for your weekly update on key news trading events. Register here:
  • *Reminder: Weekly Strategy Webinar tomorrow morning at 8:30am EDT on DailyFX!
  • EUR/USD fell sharply last week and there are few signs yet that the selling is over. However, a bounce is likely before the decline resumes. Get your #currencies update from @MartinSEssex here:
  • The week ahead has many systemic issues that take control of the markets, but scheduled data is heavily skewed to the Dollar. Here is my video for the week ahead:
  • GBP turbulence persists as investors eye the next round of EU-UK Brexit negotiations. Cautious optimism signals a deal is near. Get your #currencies update from @PaulRobinsonFX here:
  • The AB=CD pattern is simple once you know how to spot it and draw the proper Fibonacci retracements. Make your trading strategy as simple as ABCD here:
  • BoE’s Tenreyro says evidence on negative rates are “encouraging” Meanwhile, STOXX Europe Banks Index resides at all time lows
  • What is the outlook for financial markets ahead of the first presidential debate and how are Democratic nominee Joe Biden and President Donald Trump doing in the polls? Find out from @ZabelinDimitri here:
S&P 500 to Enjoy Boost from Dovish Fed, MSFT Stock After Earnings

S&P 500 to Enjoy Boost from Dovish Fed, MSFT Stock After Earnings

2019-07-18 21:00:00
Peter Hanks, Analyst

S&P 500 Price Outlook:

S&P 500 to Enjoy Boost from Dovish Fed, MSFT Stock After Earnings

The S&P 500 rallied into the close after a series of dovish comments were able to undo the damage dealt by disappointing earnings out of Netflix the day prior which sent the stock diving and the Nasdaq 100 lower. That disappointment will be further curtailed by strong earnings from the world’s largest publicly traded company, Microsoft (MSFT). A bullish reaction from the largest weighted member in both the S&P 500 and Nasdaq 100 indices will work to undo any short-term concerns and could spur a continuation rally into the weekend.

Microsoft Earnings Impress

Microsoft impressed Street analysts, reporting earnings of $1.37 a share on $33.72 billion in revenue compared to expectations of $1.21 and $32.78 billion respectively. The results were enough to send MSFT shares over 1% higher in after-hours trading – while remaining within the options-implied price range I outlined yesterday. Boasting a 37% climb in the year-to-date, the robust results could solidify MSFT as the world’s largest publicly traded company for the time being – especially if the other contestants disappoint when it comes time for their quarterly reports.

Microsoft (MSFT) Stock Price Chart: Daily Time Frame (January – July) (Chart 1)

msft stock price after earnings

Fed Remarks Send Stocks Soaring

Federal Reserve Vice Chairman John Williams took to the stage to talk monetary policy Thursday afternoon and a series of dovish remarks sent stocks and gold ripping alongside a painful decline in the US Dollar. Consequently, the odds of a 50-basis point rate cut at the July meeting surged to 66.5% from 33.5% before Williams began to speak.

S&P 500 to Enjoy Boost from Dovish Fed, MSFT Stock After Earnings

Chart prepared by Thomas Westwater with data from Bloomberg

The increased likelihood - or expectation - that the Fed will materially fulfil its dovish lean combined with strong earnings from Microsoft will likely carry the S&P 500 into the weekend on a high note. Next week is a blackout week for Federal Reserve commentary, so the market will have little to digest on the monetary policy front, instead looking to a slew of critically important earnings from some of the largest tech companies. In the meantime, follow @PeterHanksFXon Twitter for updates and analysis on key themes and price action as earnings season unfolds.

--Written by Peter Hanks, Junior Analyst for

Contact and follow Peter on Twitter @PeterHanksFX

Read more:Dow Jones, Nasdaq 100, S&P 500, DAX 30 Fundamental Forecast

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.