Stock Market
The enthusiasm from last week is being carried over into this week, with US stock futures and European markets trading higher.
As a number of US banks announce earnings, bank earnings remain a hot topic. Traders will be most interested in how much these banks are lending and how much they are tightening their lending requirements throughout the next few quarters. Remember that interest rates in the United States are at a multi-decade high, and financing isn’t as simple as it once was.
Furthermore, these institutions are aware that inflation remains considerably above the Fed’s objective, implying that the Fed is likely to raise interest rates by 25 basis points a couple of times, posing a danger to the US economy. This is because rising interest rates are limiting economic growth in the United States. However, not everyone is pessimistic about the US economy, as the Treasury Secretary recently said that she continues to forecast modest growth.
In terms of trading, the general consensus is that traders dislike the banking industry, but considering that the top US banks had excellent results last week, traders believe it may be worth the risk.
Earnings: Netflix
Investors and traders will be paying special attention to the quarterly reports that will be released this week by a number of prominent companies, including Netflix and Tesla. Tomorrow, Netflix will reveal its quarterly earnings, and once again, user growth and customer loyalty will be interesting metrics to watch. Consumers are under pressure, and the amount of money available for discretionary spending continues to be extremely low, which causes them to reduce their spending. Because of this, it is possible that we will have fewer clients who are prepared to renew their membership. Traders are also going to take into consideration how the company has been able to increase its membership by promoting password sharing. This is an important factor.
Tesla and Its Price
On Wednesday, Tesla will make public its quarterly financial report. There is no doubt that the completion of electric vehicles has reached an all-time high, and there is no longer any debate that Tesla does not have the same distinctive position it formerly had. Its automobiles continue to be sold at a price that is quite high, despite the fact that its competitors have closed the performance gap. As a direct consequence of this, more price reductions are still a possibility, and investors are worried about margins. Another essential aspect to take into account is delivery and any potential issues with the supply chain.
Gold Price: More Optimism
The price of gold got off to a strong start this week, maintaining its position above the key support level of $2,000 throughout the day. Traders are keeping a close eye on US economic figures as well as the next move in monetary policy that will be made by the Federal Reserve, all of which have a significant influence on the decision that they make.
We feel that the path of least resistance continues to be biassed to the upward direction, and traders would prefer a chance to purchase on the dip. The dollar index is anticipated to decline further since speculators are already aware that there will be one more extraordinary increase in the coming days, and any more increases would be very detrimental to the economy of the United States.
