(CercleFinance.com) – Wall Street should start a week in the green on Monday which will mark the real kick-off of the results season, with always the hope of pleasant surprises.
A few minutes after the opening, the Dow Jones rose by 0.7% to 33,909.7 points while the Nasdaq Composite gained almost 0.7% to 13,499.9 points.
In the absence of catalysts, the rise in indices should, however, remain limited and insufficient to imprint an upward trend on indices which have not advanced since this summer.
Recent events in the Middle East risk making the results season even more unpredictable, even fraught with threats.
The Israeli-Palestinian conflict has boosted oil prices, further increasing the energy bills of households and businesses while the economic environment was already uncertain.
The markets have already started to factor in the scenario of an upcoming recession in the more or less short term and investors will analyze company announcements in this sense, but especially their prospects.
In the event of good surprises, the financial markets could say that they may have gone a little strong given the 7% decline recorded by the Dow Jones index over the last six months.
In total, the results of 55 companies in the S&P 500 index are expected this week, including those of five components of the Dow Jones, including Goldman Sachs, J&J and American Express, not to mention those of the technological heavyweights.
On the energy market, oil is consolidating after its sudden 6% rise last week at the end of a weekend marked by a lack of escalation, which results in a decline of 0.2% of WTI at 87.5 dollars per barrel.
On the bond side, the stabilization of long-term rates is helping to calm sellers, even if yields on ten-year Treasuries at 4.68% do not really reflect a shift to ‘risk-off’.
Published this morning, the Empire State index which measures manufacturing activity in the New York region deteriorated by seven points, to -4.6, in October, which reflects a decline in the general situation in the sector.
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