Monday, 13 April 2009 12:39:54 GMT
Written by John Rivera, Analyst
What To Watch For In The US Session
• Futures Trading Lower
• Bank Earnings Ahead
U.S. Stock Futures Point Toward Lower Open, Bank Earnings Ahead
U.S. futures are pointing toward a lower open today following the Easter Holiday,and with many trading desks half manned, it could lead to a light volume trading day. Therefore, we could see some volatility like we did on Thursday before the holiday started. The economic calendar is empty and won’t provide any event risk. However, we could se trades start to hedge against tomorrow’s advance retail sales report which is expected to show a 0.3% increase. Earnings season is under way and with Goldman Sachs, JP Morgan and Citigroup set to report financials will come under focus again. The sector has been receiving support as the government continues to take measures to free up credit markets. However, large losses from the leaders in the sector will raise concerns that we may see several banks fail the government’s stress test which could lea to more bankruptcies.
Dow Jones 8083.38
The DJIA futures have remained in negative territory and if banking concerns mount then we could see the blue chip index trade lower. However, a increase in industrial output in China could raise optimism that the global downturn is ending and lift multinational names.
The Nasdaq could trade lower today if we start to see profit taking as the index has erased its losses for the year for a second time. Yet, breaking through the technical level could lead to a continuation of bullish momentum.
S&P 500 856.56
The broader index may also be susceptible to growing banking concerns as the sector still accounts for nearly 13%.