Financial Analyst/Content Writer, RADEX MARKETS
Lawrence J. came from a strong technical and engineering background before pivoting into a more financial role later on in his career. Always interested in international finance, Lawrence is experienced in both traditional markets as well as the emerging crypto markets. He now serves as the financial writer for RADEX MARKETS.
AZIONI
US stock indices begin the week very close to record highs, ahead of a busy quarterly earnings calendar. The S&P 500 rose 1.15% over the course of last week, while the Nasdaq-100 edged 0.24% higher after coming down from intra-week highs. The Dow Jones meanwhile gained 0.9% over the same timeframe, although the narrower index remains comparatively further removed from potential new record highs of its own. Generally speaking, markets enter the fourth quarter of the year in somewhat high spirits, as investors expect the strong growth in semiconductors to continue to do the heavy lifting. With that said, international capital appears to be withdrawing from Korean stock markets, uniquely concentrated as they are around computer memory.
Geopolitical turmoil, both in the Middle East and Russia, remains a sticking point for crude oil markets, although by and large the worst-case scenario is somewhat priced in. A shaky energy ceasefire between Russia and Ukraine is starting to emerge, after the former suffered a sustained campaign of long-range drone attacks against its oil refining capabilities. Unfortunately, such developments were offset by a Houthi strike on Riyadh airport that killed 13 people on Sunday. To complicate matters, hurricane Isaias is now ravaging the coastal United States, forcing local oil producers to halt production in the Gulf of Mexico, further restricting petroleum deliveries. Suffice to say there are many strings currently pulling oil markets in different directions, but the end result is that Brent Crude remains over $100 per barrel.
Q3 is over and US companies up and down the leaderboard are primed to publish their latest quarterly reports. Earnings season fires up this week, starting with the major players in the banking sector and followed by semiconductor giants later on. JPMorgan Chase (JPM), Goldman Sachs (GS), Wells Fargo (WFC) and Citigroup (C) are all scheduled to report before market open on Tuesday, as are Johnson & Johnson (JNJ) and UnitedHealth (UNH). Bank of America (BAC), Morgan Stanley (MS) and BlackRock (BLK) follow on Wednesday, as attentions begin to turn to the chip manufacturing industry. ASML (ASML) also reports on Wednesday, before its primary client, Taiwan Semiconductor Manufacturing Company (TSM), delivers its latest on Thursday. Both companies together represent a reliable bellwether for the global semiconductor industry and in fact TSMC has already provided a decent clue in the form of last week’s preliminary Q3 revenue figures, which hit TWD 1.49 trillion ($46.8 billion) to easily beat estimates of TWD 1.46 trillion ($45.7 billion).
Beyond the earnings schedule, the economic calendar also has a few points of order to contribute. The September CPI figures are set to hit the newswires on Wednesday, giving the latest reading on US inflation, while the producer price index follows a day later on Thursday, as do the latest retail sales numbers. On Friday, market participants will lock on to Chairman Kevin Warsh’s speech, which is expected to focus heavily on the Federal Reserve’s future interest rate path. Although the US bond market will be closed today, the NYSE and Nasdaq will remain open as usual; Canadian and Japanese stock markets will however be closed.
About the Author
Lawrence J. came from a strong technical and engineering background before pivoting into a more financial role later on in his career. Always interested in international finance, Lawrence is experienced in both traditional markets as well as the emerging crypto markets. He now serves as the financial writer for RADEX MARKETS.
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