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
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
Oil - US Crude
Bearish
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
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
Bearish
USD/JPY
Bearish
More View more
Real Time News
  • Forex Update: As of 13:00, these are your best and worst performers based on the London trading schedule: 🇪🇺EUR: -0.06% 🇨🇭CHF: -0.11% 🇯🇵JPY: -0.29% 🇨🇦CAD: -0.59% 🇳🇿NZD: -0.62% 🇦🇺AUD: -0.70% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/ab9DM9x8QV
  • Heads Up:🇨🇦 Retail Sales MoM (NOV) due at 13:30 GMT (15min) Expected: 0.1% Previous: 0.4% https://www.dailyfx.com/economic-calendar#2021-01-22
  • #Gold has fallen this morning, now trading back around $1,840. The precious metal had hit its highest level since the early January selloff yesterday as it tested around $1,870. $XAU $GLD https://t.co/AP8aqLSvOs
  • Get your snapshot update of the of relative currency strength and exchange status from around the globe here: https://t.co/H19vRDCpUJ https://t.co/CRFKPoTOdL
  • 🇲🇽 Mid-month Inflation Rate YoY (JAN) Actual: 3.33% Expected: 3.17% Previous: 3.22% https://www.dailyfx.com/economic-calendar#2021-01-22
  • 🇲🇽 Mid-month Inflation Rate YoY (JAN) Actual: 3.33 Expected: 3.17% Previous: 3.22% https://www.dailyfx.com/economic-calendar#2021-01-22
  • 🇲🇽 Mid-month Inflation Rate MoM (JAN) Actual: 0.51% Expected: 0.34% Previous: 0.34% https://www.dailyfx.com/economic-calendar#2021-01-22
  • 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 67.05%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/RmN06yuSM0
  • Heads Up:🇲🇽 Mid-month Inflation Rate MoM (JAN) due at 12:00 GMT (15min) Expected: 0.34% Previous: 0.34% https://www.dailyfx.com/economic-calendar#2021-01-22
  • Heads Up:🇲🇽 Mid-month Inflation Rate YoY (JAN) due at 12:00 GMT (15min) Expected: 3.17% Previous: 3.22% https://www.dailyfx.com/economic-calendar#2021-01-22
Dow Jones Forecast: Retail Earnings May Weigh on Recovery Rally

Dow Jones Forecast: Retail Earnings May Weigh on Recovery Rally

Peter Hanks, Analyst

Dow Jones Price Outlook:

Dow Jones Forecast: Retail Earnings May Weigh on Recovery Rally

Bulls and bears have jostled for position on the Dow Jones this week as early strength quickly transitioned to weakness despite hopes of a coronavirus vaccine and hints of recovery in the US economy. While traders continue to search for a trend, earnings from some of the largest retailers in the country will offer key insight into the health of the US economy with the potential to extinguish hope or ignite further optimism. In turn, investors will watch the reports closely in an attempt to gauge the pace of recovery and the depth of contraction.

Upcoming Earnings in the Retail Sector

retail stocks earnings report

Source: Yahoo Finance

To be sure, the looming reports will be disseminated into an unfamiliar atmosphere as prior companies have shown poor results are not necessarily followed by an adverse reaction in stock price. Since the global economy has been upended, investors have afforded companies with poor performances a little bit more leeway than they may have in the past, instead looking to forward guidance.

Equities Forecast
Equities Forecast
Recommended by Peter Hanks
Get Your Free Equities Forecast
Get My Guide

In the case of retailers, the dynamic may be similar, but as retail giants like Walmart and Target were allowed to remain open as others – like Best Buy – were shuttered, there may be an opportunity for stock-pickers to capitalize on unique circumstances. That said, forecasting corporate results in the current climate is no easy task.

More broadly, the results will offer granular insight on specific areas of the retail sector and consumer spending trends. If results are negative across the board and reveal that consumers have shied away from purchasing during the pandemic – as is expected by many – the road to economic recovery could be longer than originally anticipated. Thus, the general trend of results may have a direct impact on the Dow Jones.

Dow Jones Alongside Retail Sector: Daily Time Frame (January 2020 – May 2020)

dow jones price chart

Chart created in TradingView

As the Industrial Average grapples with technical resistance, a dire string of corporate reports could derail an attempt higher from a price perspective. Furthermore, the retail sector has closely matched the performance of the Dow Jones in the month of May. Since a continuation higher may require broader market participation – as I noted Tuesday – weakness in a sector with a notable positive correlation does not guarantee declines, but it may make a rally more difficult to evidence. In the interim, follow @PeterHanksFX on Twitter for updates.

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

--Written by Peter Hanks, 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