US open: Dow and S&P open flat despite optimism over Greece and solid earnings
US equities struggled for direction early on Monday, despite optimism over Greece’s crisis and strong earnings reports.
Halliburton Co.
$38.54
10:59 26/04/24
INTERNATIONAL BUSINESS MACHINES CORPORATION COM STK USD0.20 (CDI)
$118.95
17:14 26/04/24
Morgan Stanley
$92.83
10:59 26/04/24
Nasdaq 100
17,718.30
12:15 26/04/24
Prospect Japan Fund Ltd.
$1.30
15:24 27/07/17
Software & Computer Services
2,441.17
16:59 26/04/24
Just after 1500 BST, the Dow Jones Industrial Average was four points lower to 18,082.50, while the S&P 500 lost less than a point and the Nasdaq was three points higher.
Greece banks reopen
European equity markets rose, with investors shifting their focus back to earnings as worries about Greece subsided, as the country’s banks reopened after three weeks.
Meanwhile, Athens has reportedly begun paying back the €4.2bn it owes the European Central Bank, thanks to the €7.16bn bridge loan that was approved last week by the European Union
“With Greece set to make its debt payment to the ECB on Monday and accommodative monetary policy from the ECB for the foreseeable future, optimism is picking up in Europe again,” said CMC Markets’ analyst Jasper Lawler.
“US stocks are near record peaks but the direction of interest rates in the United States is higher according to Fed Chair Janet Yellen.”
Earnings in focus
With no major economic reports out on Monday, investors will focus on the earnings season, with a number of big firms set to report.
Banking giants Morgan Stanley 0.82% in pre-market trading after its second quarter earnings and revenue beat expectations.
Oil and gas services provider Halliburton jumped 3.05% ahead of the bell after its second quarter earnings and revenue declined less than expected.
Toy-maker Hasbro surged 5.12% after its quarterly revenue and profits topped expectations, while IBM will publish its quarterly earnings after the close.
With Microsoft and Apple slated to report later this week, the earning season will play a key role in determining the path US equities will follow in the short-term future.
“The US reporting season looks to kick it up another gear this week with some of the bigger names all revealing their numbers within the first two days alone,” said IG’s analyst Alastair McCaig.
“Analytical expectations for this latest reporting season have been so low that the bar looks to have been set for limbo dancing rather than hurdling.”
Gold tumbles
Elsewhere, Asian indices started the week on a mixed note due to a weaker commodities market, with gold slumping to a five-year low, losing 1.98% to $1,109.50.
The dollar was broadly flat against the euro but gained 0.30 and 0.17%% against the pound and the yen respectively, while oil prices slid, with West Texas Intermediate losing 0.41% to $50.68 a barrel, while Brent fell 0.67% to $56.72 a barrel.