Markets don’t appear to be too concerned with the upcoming bank stress tests that will be revealed after the bell today at 17:00 GMT as futures are trading higher.
What To Watch For In The US Session
• Bank Stress Tests Ahead
• Cisco Positive Outlook Could Lift Tech Stocks
• Initial Jobless Claims Fall
Improvement From ADP Employment Report Turns Futures Positive, Offsetting Banking Concerns
Markets don’t appear to be too concerned with the upcoming bank stress tests that will be revealed after the bell today at 17:00 GMT as futures are trading higher. Yesterday we saw the status of several of the major banks leaked ahead of the results with Goldman Sachs, JP Morgan and Wells Fargo deemed adequately capitalized and Bank of America and Citigroup required to raise capital. We saw financials rise on the reports as traders appeared confident that the liquidity needs of the under capitalized banks would be met by issuing common shares. Initial jobless claims falling to 610K reinforced yesterday’s ADP report that the labor market is improving and the data could raise hopes for future domestic demand.
Dow Jones 8512.28
The DJIA futures have remained in positive territory as the concerns over the banking system continue to ease. Additionally, BoE announcing additional liquidity measures and the ECB cutting their benchmark rate to a record low 1.00% has raised optimism for the global economy.
NASDAQ 1759.10
The Nasdaq could receive a significant boost from the better than expected earnings from Cisco and the fact that it sees sales stabilizing. The positive labor data will also add to the bullish outlook.
S&P 500 919.53
The S&P 500 may also find support from the improved labor market but if banking concerns reemerge then the broader index could end the day lower as we get closer to the results of the bank stress tests.
