Wall Street opens lower on corporate earnings

Friday, July 11, 2014

Markets brushed off concerns of contagion risk from Portugal’s banking sector today with benchmark European stock indices managing to push into positive territory throughout the session. London’s blue chip index managed to find support at yesterday’s close before intraday gains tested levels towards 6,700. However, these gains struggled to hold and the index slipped back below the 200 day MA. Major European equity indices displayed mixed trading throughout the session with the CAC and DAX both starting strongly before the DAX slipped lower, swinging between gains and losses in the afternoon.

Wells Fargo kicked off the financials earnings reports today, reporting net income of $1.01 per share in Q2 which matched analysts’ estimates and was up from 98 cents a year earlier. However, earnings per share fell from the $1.05 per share achieved in Q1, putting an end to the 17 quarter streak of rising earnings. Wall Street reacted as expected to this surprise slowdown in growth and at the time of writing both the S&P 500 and DJIA were trading between 0.15-0.25% lower.

Spot gold price held firm around $1,335/oz and as expected trading activity has been relatively thin in the run up to the Fed budget statement after European markets close and with today’s trading session devoid of significant macro data releases focus will switch to next week’s release of retail sales, manufacturing activity and industrial output as well as inflation and unemployment data from both sides of the Atlantic.

London's benchmark index shores up support after steep sell-off

UKX Index FTSE 100 Index Dail 2014 07 11 14 32 01

Spot gold prices hold firm above $1,335/oz

XAU Curncy Gold Spot Oz 2014 07 11 15 12 54

Topics: Equities, Gold
More from: Kash Kamal