Earnings season is a crucial time for investors and analysts, as it provides insights into how well companies have performed over the past quarter and gives indications of their future earnings. In 2023, expectations for US Q1 earnings were low due to economic challenges and rising interest rates. Surprisingly, many companies beat these low expectations, with 75% of S&P 500 companies surpassing forecasts.
OIL: turbulence ahead
2020-07-13 • Updated
In May-June, WTI oil price was rising almost non-stop. In July, we have an obvious consolidation. The level of $41 per barrel so far serves as an iron wall for bullish intentions. What is the likely scenario ahead?
OPEC+ is having a meeting this week. They are going to discuss the possibility of loosening the tight regime of output cuts in view of expectedly improving outlook for global oil demand. Locally, investors are already factoring in an increase in the output – last Friday, WTI dropped to $38.5
Surely, for oil prices, the period of “simply growing” is over – at least, for now. This week, we will definitely see volatility. First, the OPEC+ will make its announcements; then, the market will take its time to react, retrace, and stabilize. So we are speaking about a couple of weeks of the full cycle of market reaction getting ready to pave the way for a new period of probable growth.
Therefore, expect some turbulence ahead. Dropdowns as deep as down to $30-35 would be nothing extraordinary. But the end of the month, though, it is likely to be over, and by that time $40 will eventually convert into support level.
When I started trading stocks a few years ago, I often needed to pay more attention to my technical analysis skills and trust that the market would play fair according to my analysis. I have since discovered that the safer approach to trading stocks is to, more often than not, seek out investing opportunities - that is, catching stock commodities with a potential to rise.
The S&P 500 had a good week due to the impressive start of Q1 earnings and favorable inflation data. In March, the consumer price index rose 5%, lower than the previous month's 6%, and met economists' expectations.
The past several weeks have been a real triumph for the bulls in the oil market. The Brent spot price grew by 8.5% during the last month.
Gold prices are rising for three consecutive days ahead of the Federal Reserve (Fed) interest rate decision, which is expected to remain unchanged due to declining inflation and a positive economic outlook. Investors are keen on the Fed's interest rate guidance, fearing a hawkish stance that could trigger market risk aversion.
Amid concerns of a Chinese economic slowdown, reports of declining investment often overlook China's efficient investment strategy in emerging sectors for long-term growth. China has taken measures to stabilize foreign and private sector investments, like reducing the reserve requirement ratio to boost investor confidence.