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Redler said he remained a long time on the market, but that he was covering himself because the quick wins made him riskier. "The next stop that traders are considering is 2700 to 2730 … Next week could be a good week for a break for [the market] digests the movement. Redler said next week's reports will be important, but the following week will be crucial with Apple and Amazon.
Trade headlines were positive last week, with the United States considering reducing tariffs and China proposing to boost imports.
"We will continue to see these titles until the deadline," said Cesar Rojas, global economist at Citigroup. Rojas said he hoped to see an agreement between the United States and China by the deadline of March 1, and although not all details can be resolved, he does not expect to see more tariffs.
"The goal for China is to stabilize its economy.One of the reasons we believe that an opportunity for a trade deal is the growth momentum for the US and China. We are seeing continued growth in the United States, weakening growth for the first half, but for the second half, we are witnessing a stabilization of growth in China and a moderation of growth in the United States. " he declared. He said the next talks at the end of the month could be decisive.
"I think you want to monitor the exchanges, we conduct a survey of our customers once a quarter and more than half of the investors thought we could not get a trade deal before March 1st," said Lori Calvasina, Head of US Equity Strategy at RBC. Capital markets. "I think that's one of the reasons the market has behaved better here." It's not that something has happened, but you have good news, news that is moving in a positive direction. "
The economic reports of the coming week will be limited due to the government's closure, which in itself constitutes a growing risk for the markets, economists saying it could reduce by a tenth of a point the growth of the economy. GDP every week that it continues. Regularly scheduled durable goods will not be available, but there will be existing home sales and jobless jobless claims on Thursday, among others.
For the stock market, profits will be significant, with nearly 60 S & P companies reported. This includes IBM and Johnson and Johnson on Tuesday; Procter and Gamble and United Technologies on Wednesday, and Intel and Starbucks on Thursday.
Financial companies faced various difficulties last week, with missing personalities such as Morgan Stanley and JP Morgan, who had their first defeat in 15 quarters.
According to Refinitiv, earnings growth at this stage should be 14.2%, considering companies that have already published reports.
"You have to be a little cautious at this point – it's very bumpy when you go out of the sector gate by sector," Calvasina said. "I think industries are going to become an important sector, I'm curious to see what's going to happen to them." Margin expectations have been quite high and many sales expectations are growing. Calvasina said the sector had been one of the most critical of the last quarter in terms of the impact of tariffs and could have updates on the impact.
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