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Home / Business / Stock markets are set for higher volatility as investors digest new profits

Stock markets are set for higher volatility as investors digest new profits



Stock index futures indicated a mixed start on Wall Street on Wednesday morning. They recovered from the early weakness as new earnings numbers boosted confidence and overshadowed concerns over rising interest rates and signs of a global economic slowdown.

Positive results from Boeing Co. have been credited with lifting Dow futures into positive territory.

Volatility is expected to remain as Wall Street is ready to process additional earnings data in a busy week for quarterly corporate earnings.

How did important benchmarks evolve?

Futures for the Dow Jones Industrial Average

YMZ8, + 0.11%

climbed 66 points, or 0.3%, to 25,305, those for the S & P 500 Index

ESZ8, -0.21%

were 2 points at 2,744.5, while the Nasdaq-100 futures

NQZ8, -0.18%

were 3.5 points to 7,143.

On Tuesday, the Dow

DJIA, -0.50%

closed down 125.98 points, down 0.5% to 25,191.43 after losing nearly 550 points at its low. The S & P 500

SPX, -0.55%

fell 15.19 points or 0.6% to 2,740.69, while the Nasdaq Composite Index

COMP, -0.42%

slipped 31.09 points, or 0.4%, to 7,437.54

The S & P 500 has dropped five consecutive episodes in October nearly 6%, the Dow hopes to reverse a two-day hurling, and this month has fallen by 4.8%. Meanwhile, the Nasdaq, which has experienced a particularly volatile track below its peer benchmarks, fell 7.6% in October and continues to flirt with the correction area, defined as a 10% decline from a recent high. The Technology and Internet Index fell 8.3% from its all-time high of 29th August.

DJIA, -0.50%

Do not miss : Watch out for "dead cat jumps" in stocks says Morgan Stanley Wilson

What drove the market?

Around 150 companies will report in a busy week, including several megacap companies. Investors are looking for the degree to which higher interest rates will hurt the economy as the Federal Reserve pointed out that it will tighten monetary policy further by the end of the year.

China's recent stock market crisis and political drama in Europe surrounding Italy's budget deficit, as well as the efforts of the European Union and the UK to exit this trading bloc, have also hurt investor sentiment.

The early decline in futures on Wednesday even came when the skin color in Europe looked a little better and the Beijing stock showed subdued actions, but a profit round is likely to give more clarity to investors worried about the US economic outlook gain.

Read: Italy is "Risk Factor No. 1 in the Fourth Quarter" for European Investment

What do analysts say?

"US Markets are likely to ease slightly after lows from their lows, with corporate earnings again leading the way, with yesterday's sell off on the Caterpillar's outlook likely to be a bit overblown as it merely explained the obvious," said Michael Hewson, senior market analyst at CMC Markets UK, in a statement on Wednesday.

Today's focus will be on the latest figures from Ford, Microsoft and Visa.

Reads: The stock market faces an unlimited downside risk, warns the veteran trader

Which data and Fed spokespersons are in focus?
  • Markit flash measurements for October's production and services are due each at 9 o'clock: 45 o'clock Eastern time
  • A report on new home sales for September at an annualized rate of 620.00 new homes is expected by 10 o'clock
  • Federal Reserve Beige Book due at 2 pm
  • Speakers at the Fed will present Cleveland Fed President Loretta Mester in a discussion at 1 pm while Governor Lael Brainard will speak at 7 pm.
Which stocks were the focus?

Dow Futures stages a recovery from the bell Wednesday, after Boeing Co .

BA, -1.67%

reported on Street's expectations. The shares rose 4.9% in the premarket action, an increase that would add 101 points to the blue-chip benchmark.

Texas Instruments Inc. . & # 39; s stock

TXN, + 0.53%

was 6.9% lower in the advance market than after the third quarter after the close on Tuesday.

Shares in United Parcel Service Inc.

UPS, -1.21%

declined by 2.9% on Wednesday after the parcel delivery service slipped earnings expectations for the Third quarter had a bit shy on revenue.

Shares of AT & T Inc .

T, + 1.07%

slid prematurely on Wednesday after telecoms and media outperformed expectations in the third quarter, but outperformed sales.

Visa Inc. .

V, -1.08%

and Ford Motor Co .

F, + 2.14%

will be in the limelight and submit quarterly results before the opening ceremony. Microsoft Corp. .

MSFT, -1,40%

should report after graduation.

Read: Microsoft Profit: The Silent Drive for $ 1 Trillion Market Capitalization

What did other markets do?

The Shanghai Composite Index

SHCOMP, + 0.33%

rose 0.3% on Wednesday, a day after falling 2.3% on Tuesday, while Shenzhen Composite Index

399106, -0.24%

fell by 0.2%.

European stocks were more modest with the FTSE 100

FTSE, + 1.61%

by 0.4% and the Stoxx Europe 600 Index

SXXP, + 1.18%

gain 0.4%. Both indices fell sharply on Tuesday.

Gold Prices

GCZ8, -0.45%

declined by about 0.1% after settling higher in the previous session, while they were oil futures

USA: CLX8

edged lower.

Read: The Real Reason Why Marijuana Stocks Fall Off a Cliff – and What to Do Now

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