US open: Stocks rise on upbeat earnings, tech leads the way

US stocks are set to open higher amid upbeat earnings. Tesla joins the $1 trillion club.

USA (2)

US futures

Dow futures +0.23% at 35840

S&P futures +0.3% at 4583

Nasdaq futures +0.54% at 15600

In Europe

FTSE +0.65% at 7273

Dax +0.94% at 15760

Euro Stoxx +0.85% at 44225

Learn more about trading indices

Stocks look to earnings

US stocks are set to open on the front foot with the tech heavy Nasdaq leading the charge. Upbeat earnings expected to boost the mood, in addition to Tesla making the $1 trillion milestone.

Wall Street earnings are once again sufficiently strong to overshadow any concerns over inflation ahead of a slew of central bank meetings over the coming 10 days.

After gaining over 12% in the previous session on the back of a 100,000 EV order by Hertz, the EV maker was just 0.1% lower pre-market today. Facebook is also heading higher pre-market after not only reporting solid user growth but also a buyback promise of $50 billion more in stock. This sufficiently distracted from the fact that revenue growth at the social media giant had slowed to 35%  year on year, down from 50% earlier in the year.

Big tech is likely to remain firmly in focus with earnings from Microsoft and Alphabet due after the close.

On the data front US consumer confidence could dampen upbeat spirits if the reading comes in lower than forecast. Consumer morale is expected to decline again in October which will mark the fourth straight month of deteriorating sentiment.

Where next for the Dow Jones Index?

After breaking out at the end of last week the Dow is set to climb higher. There are few signs on the chart that this move higher has run its path. Support can be seen at 35535 and 35000 – a move below here could negate the near term up trend. It would take a move below 34125 for sellers to gain momentum.

Dow chart

FX – USD pares gains GBP rallies

The US Dollar pared earlier gains as it traced US treasury yields lower. This could well be the calm before the storm as investors wait for central bank announcements from a slew of banks including the BoC, the BoJ and the ECB this week, followed by the RBA, the Fed and the BoE next week.

GBP/USD trades higher, hitting a 3 day peak above 1.38 following on from upbeat CBI retail sales distributive trends. The CBI report revealed that the sales index surged to 30, up from 11 in September and well ahead of the 13 expected. GBP jumped on the news.

GBP/USD +0.2% at 1.3793

EUR/USD +0.07% at 1.1616

Oil pares losses

After starting the session in the red, oil prices have pared earlier losses and continues to trade around multi year highs. Whilst there are some potential headwinds building the price remains under pinned by strong demand in the US, the world’s largest consumer and tight supply.

Iran and the West are entering a crucial stage in talks. However, we’ve been here before. Any agreement between Iran and the West which would see the sanctions removed on Iranian oil is unlikely to ne imminent.

API crude stock pile data is due to be released late today ahead of EIA data tomorrow.

WTI crude trades +0.18% at $83.60

Brent trades +0.12% at $85.31

Learn more about trading oil here.


Looking ahead

14:00 US New Home Sales

15:00 US Consumer Confidence

21:30 API Weekly Crude Stock Piles



How to trade with City Index

Follow these easy steps to start trading with City Index today:

  1. Open a City Index account, or log-in if you’re already a customer.
  2. Search for the market you want to trade in our award-winning platform.
  3. Choose your position and size, and your stop and limit levels
  4. Place the trade.



From time to time, StoneX Financial Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.