Market Analysis: What to Expect from the Upcoming Reporting Season

FXOpen

This week, the reporting season of US companies for the Q2 will begin. Traditionally, the first to report on the results of their activities are large banks:

→ July 14: JPMorgan, Citi and Wells Fargo
→ July 18: BofA and Morgan Stanley
→ July 19: Goldman Sachs

FT analysts suggest that banks will show a large increase in loan losses due to rising interest rates. Disappointing figures in the reports may give rise to talk about a recession again.

Incidentally, Treasury Secretary Yellen said in an interview with CBS's Face the Nation on Sunday that she doesn't completely rule out the risk of a recession. And analysts at Bloomberg Economics believe that the baseline scenario for a US recession will begin towards the end of 2023.

It seems that the market is already winning back fears about reports in the banking sector, as the dynamics of the XLF (fund based on shares of banks) this month noticeably lags behind the broad S&P 500 index, as the chart shows. So far, the price of the S&P 500 is moving within an ascending channel (shown in blue), but the reporting season may change the mood.

Trade global index CFDs with zero commission and tight spreads. Open your FXOpen account now or learn more about trading index CFDs with FXOpen.

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 Financial Market News

Weekly Market Wrap With Gary Thomson: S&P500, US Dollar, Gold Price, PEP Stocks Weekly Market Wrap With Gary Thomson: UK100, Hang Seng Index, AUD/JPY, GBP/USD, USD/CAD Japanese Yen Goes on Volatility Drive after US Economic Uncertainty Surfaces Weekly Market Wrap With Gary Thomson: FTSE100, US Dollar, USD/JPY, BTC/USD Weekly Market Wrap With Gary Thomson: UK100, USD, GOLD, OIL

Latest articles

Indices

Tech Stocks Back in Vogue as Nasdaq 100 Rallies to Record High

The tech-heavy Nasdaq 100 index (US Tech 100 mini on FXOpen’s TickTrader platform) reached a new all-time high on Monday, closing the trading session at 18,684.2 according to FXOpen pricing, fueled by renewed investor enthusiasm for technology

Commodities

Gold Price Reaches Historic High

According to confirmed information, Iranian President Ebrahim Raisi, considered a potential successor to the country's supreme leader, Ayatollah Ali Khamenei, died in a helicopter crash in a mountainous area near the border with Azerbaijan. The helicopter also carried Foreign Minister

Forex Analysis

Commodity Currencies Retreat from Local Highs

Despite the cooling labour market in the US and declining inflation, the American currency continues to move towards new highs. For instance, the USD/JPY currency pair might update the current month's high at 156.70, the NZD/USD sharply

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.