• English (en)
Forex Analysis
MARKET ANALYSIS: WHAT TO EXPECT FROM THE LATEST REPORTING SEASON

FXOpen

  • WSJ: Analysts expect S&P 500 companies to report lower profits. The key question is how long companies can protect profits by passing on higher costs to customers.
  • Bloomberg: S&P 500 companies are expected to record a 9% drop in earnings in the Q2, making it their worst season since 2020.

Articles were published in two leading financial publications, where the reporting season that has already begun is called a test for the stock market.

FactSet forecasts Q2 earnings for companies to fall 7.2% from the same period a year earlier. The reasons are the tightening of the Fed's monetary policy. If corporate earnings fall, the price of the S&P 500 could decline as market participants believe stocks are overvalued.


The price of the E-mini S&P 500 futures, by the way, on Friday updated the maximum of the year — perhaps the articles about the test for the stock market on the eve of the reporting season already look traditional and do not cause due concern.

What can be alarming from the point of view of technical analysis is the proximity of the price of the E-mini S&P 500 futures to the upper border of the channel built on the reference points indicated by the arrows. It is possible that during the reporting season we will be able to witness a test of this line. And if, indeed, the company data turns out to be disappointing and overshadow the current optimism, we will get more arguments to expect resistance from this line.

Bank of America, Morgan Stanley, Tesla, Netflix, IBM, Goldman Sachs, J&J, and other top companies will report this week.

Trade global forex with the Innovative Broker of 2022*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about trading forex with FXOpen.

* FXOpen International, Innovative Broker of 2022, according to the IAFT

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

Market Analysis: American Currency Rises Sharply after Fed Meeting Will Stagflation Persist in the UK? EUR/GBP Volatility May Be an Indicator Market Analysis: Commodity Currencies Find Short-term Bottom USD/CAD Analysis: How the Bank of Canada Decision Affected the National Currency Commodity Currencies, Pound and Euro in Search of Medium-term Bottom

Latest articles
Forex Analysis

Market Analysis: American Currency Rises Sharply after Fed Meeting

As expected, the decision on the interest rate had a powerful impact on the markets. Thus, the euro/US dollar pair lost more than 100 pp in just a couple of hours and updated its recent low at 1.0630,
Commodities

Oil Analysis: Finally, A Bearish Reversal?

The policy of OPEC+ countries to voluntarily reduce oil production was one of the drivers thanks to which the price of WTI oil increased by approximately 40% from its low in June. In such cases, it is appropriate to use
Commodities

Central Bank Week Shakes Up Gold Market

Yesterday, the main event of the week took place — the Federal Reserve meeting, which had a noticeable impact on the market of assets denominated in US dollars. But besides the Fed meeting, there are a number of other events this

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.