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Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:
1. Earnings
Earnings season continues with Disney (DIS), DirecTV (DTV) and Kellogg (K) due to report ahead of the open. Papa John's (PZZA) and Fossil (FOSL) release results after the close.
2. Economics
On the economic front, U.S. March trade figures are due out at 8.30 ET.
3. International markets
European markets are moving higher in early trading, supported by strong earnings reports. Germany's DAX is leading the pack with a gain of about one percent. London's FTSE added 0.8% as trading resumed after a holiday and investors look ahead to the U.K. general election on Thursday.
Shares in UBS (UBS) were on the rise, jumping 5% after the Swiss bank impressed with its first quarter earnings. Sportswear maker Adidas (ADDYY) put on nearly 3% in German trading after reporting a rise in first-quarter profit.
Asian markets mostly retreated and Japan's Nikkei index was closed for a holiday. Australian shares closed flat after the central bank cut rates to a record low of 2% in an effort to spur growth.
4. Monday market recap
It was a firm finish across major U.S. indexes. The Dow Jones industrial average gained 46 points, while the S&P 500 rose 0.3% and the Nasdaq climbed 0.2%.
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Japanese markets are closed till Thursday due to public holidays, however Chinese stocks traded lower following negative data. The China HSBC Manufacturing PMI for April showed a reading of 48.9, this figure indicates that the manufacturing economy is declining, and has continued to decline for a second consecutive month. The Hang Seng Index was down by 0.03% and the Shanghai Composite was down 0.21% by the close of the Asian session. Following the release of positive data from Australia, the AUD/USD traded with Bullish sentiment and the pair is now trading above 0.784. The Building Approvals for March rose 2.8%, significantly higher than the expected decline of 2%. Australia is expected to lower interest rates tomorrow from 2.25% to 2%, this move could cause the AUD to decline against a basket of major currencies.
During the European session, the Euro traded lower against a basket of major currencies, despite European data beating expectations. The German Manufacturing PMI showed a reading of 52.1, slightly lower than the previous month’s figure of 52.8. Furthermore, the manufacturing PMI for the Eurozone indicated expansion with a reading of 52, but slightly lower than the March figure of 52.2.
The Dollar is trading higher against a number of paired currencies following a number of positive reports from the United States. On Friday, data showed that the Michigan Consumer expectations rose 88.8, above the expected figure of 88.1 and more data released today showed that the U.S. Factory Orders for the month of March grew at its fastest rate in 8 months with a 2.1% increase, slightly higher than the expected 2%. This positive data has boosted sentiment over the economic recovery and expectations over a highly anticipated interest rate hike.
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Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:
1. Potential market movers -- McDonald's and Apple
Shares in McDonald's (MCD) could be on the move Monday as the fast food giant prepares to unveil a turnaround plan.
Shares in Apple (AAPL, Tech30) look poised to inch higher at the open. This comes after influential activist investor Carl Icahn continued to act as a cheerleader for the company during a weekend television interview on "Wall Street Week". Icahn praised the company and said the firm's shares looked undervalued compared to the rest of the market.
2. Earnings
Comcast (CCV) is reporting first-quarter earnings ahead of the open. This comes after the collapse of its $45 billion takeover bid for Time Warner Cable (TWC).
MGM Resorts (MGM) is also reporting earnings before the bell, along with Tyson Foods (TSN).
Denny's (DENN) will report after the close.
3. Stock market overview
U.S. stock futures are looking solid ahead of the open.
European markets are mostly moving higher in early trading. However, the FTSE 100 in London is closed for a long weekend holiday.
Meanwhile, most Asian markets ended with gains.
Looking back at Friday, U.S. stocks made some healthy gains. The Dow Jones industrial average rose by 184 points, the S&P 500 shot up by 1.1% and the Nasdaq closed with a 1.3% gain.
4. Economics
The U.S. government will report monthly factory orders at 10 a.m. ET.
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What is it? It checks the level of a diffusion index based on surveyed purchasing managers in the manufacturing industry.
It's a leading indicator of economic health - businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company's view of the economy.
When? May 1st at 10:00am Eastern Time.
Trading Tip: If the actual number is higher than the forecast, you can expect the USD to rise.
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