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.

0

Notifications

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

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bullish
Oil - US Crude
Bullish
Wall Street
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Bearish
More View more
Real Time News
  • The London trading session accounts for around 35% of total average forex turnover*, the largest amount relative to its peers. The London forex session overlaps with the New York session. Learn about trading the London forex session here: https://t.co/dWaWQ0MK1V https://t.co/GIR5NQK5G7
  • Italian PM Conte confirms to cabinet that he is resigning - government source https://t.co/tYi5sjp79w
  • BoJ's Kuroda says monetary policy does have some limits in trying to achieve inflation target $JPY
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 100.00%, while traders in EUR/JPY are at opposite extremes with 66.22%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/RaCg87Zqau
  • Yen, Dollar May Extend Rise as Stocks Fall After China Drains Liquidity - https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/euro_open/2021/01/26/US-Dollar-May-Extend-Rise-as-Stocks-Fall-After-China-Drains-Liquidity.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Spivak&utm_campaign=twr #Dollar #jpy #China #PBOC https://t.co/l14R7r65XH
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePTpzSI https://t.co/YPng7ACJtV
  • Commodities Update: As of 08:00, these are your best and worst performers based on the London trading schedule: Silver: 0.13% Gold: 0.05% Oil - US Crude: -0.36% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/EPww5cFVWS
  • 'We're going on bear hunt....' https://t.co/ejyyLFmhj8
  • Forex Update: As of 08:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: -0.02% 🇨🇭CHF: -0.08% 🇪🇺EUR: -0.10% 🇳🇿NZD: -0.22% 🇦🇺AUD: -0.33% 🇬🇧GBP: -0.38% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/A3NmWO1BdA
  • Indices Update: As of 08:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.24% FTSE 100: 0.16% France 40: -0.05% Wall Street: -0.46% US 500: -0.54% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/HpRrB8QiTm
S&P 500 Price Outlook: Sentiment to be Bolstered by Strong Earnings

S&P 500 Price Outlook: Sentiment to be Bolstered by Strong Earnings

Peter Hanks, Analyst

S&P 500 Forecast:

S&P 500 Price Outlook: Sentiment to be Bolstered by Strong Earnings

The S&P 500 closed modestly off intraday highs on Wednesday, but managed to climb more than 2.6% in the session following a Federal Reserve rate decision and subsequent remarks from Chairman Jerome Powell. In his comments, Mr. Powell conceded economic hardship would continue as financial metrics lag real-time conditions, but assured the central bank would provide further assistance which likely helped to overrule the pessimistic outlook.

Either way, risk appetite may continue as the week progresses following a string of strong earnings reports from some of the largest publicly traded companies. Looking to pick up where Chairman Powell left off, Microsoft, Facebook and Tesla offered their own quarterly findings – further helping to flesh out the current economic landscape. Encouragingly, the three technology companies – a classification which is not always afforded to Tesla – reported strong results across the board.

Traits of Successful Traders
Traits of Successful Traders
Recommended by Peter Hanks
Traits of Successful Traders
Get My Guide

As a result, their share prices rose in after-hours trading and their influence on the broader indices may translate to renewed strength for the Dow Jones, Nasdaq 100 and S&P 500. Still, forthcoming earnings from Apple and Amazon on Thursday afternoon could spark apprehension and look to keep gains contained for the time being. Regardless, the quarterly results help to justify the outperformance the top five stocks in the S&P 500 have recently enjoyed. As both Facebook and Microsoft displayed, not even coronavirus can keep the mega-cap corporations down, as both firms reported earnings and revenue above expectations.

In the case of Facebook and Tesla, however, management teams were quick to highlight their concerns moving into the next quarter. Despite strong revenue and daily active user figures, Facebook announced it will spend $14 billion to $16 billion in 2020, notably beneath prior expectations of $17 billion to $19 billion. Tesla on the other hand, outlined significant “global operational challenges” in their route to recording record production and deliveries in a first quarter.

All in all, the three companies echoed much of what Chairman Powell had voiced earlier, as each sought to temper expectations moving forward despite seemingly acceptable data figures at present. Nevertheless, boisterous sentiment has allowed bulls to retain control which may translate to further S&P 500 strength in the near term even as the indices climb ever-closer to their pre-crash levels.

How to Use IG Client Sentiment in Your Trading
How to Use IG Client Sentiment in Your Trading
Recommended by Peter Hanks
Improve your trading with IG Client Sentiment Data
Get My Guide

So, while price may look to be tilted higher in the days ahead, concerns have been laid out and fundamentally it would be hard to argue indices should have a value equal to that of early February. At the previous valuation, many economies were still untouched by the coronavirus and its required containment procedures – an important factor to keep in mind should stocks continue to melt higher. In the meantime, follow @PeterHanksFX on Twitter for updates and analysis.

--Written by Peter Hanks, Junior Analyst for DailyFX.com

Contact and follow Peter on Twitter @PeterHanksFX

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

DISCLOSURES