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Stocks closed higher on Monday as investors shifted their focus to first-quarter corporate earnings. The banking sector was particularly in the spotlight after panic over the health of lenders swept markets last month. After major banks kicked off earnings season last week, several more banks are due to announce their earnings this week.
Charles Schwab, the financial services company, reported earnings early Monday. The bank announced that deposits had fallen by 11% from the same period last year, as customers shifted their money to higher-yielding accounts. State Street, another financial services company, reported financial results for its top and bottom lines that disappointed Wall Street; the stock tumbled 9.3%. Investors are also waiting for earnings reports from Goldman Sachs, Bank of America, and Morgan Stanley, all of which are scheduled for release throughout the week.
On Monday, House Speaker Kevin McCarthy spoke about the approaching debt limit and emphasized that defaulting on the debt will not be an option. Also this week, traders will be looking at the Fed’s Beige Book of anecdotal economic conditions, which is due on Wednesday, as well as service and manufacturing purchasing managers’ indexes (PMIs) on Friday. Fed speakers will also deliver public remarks throughout the days ahead, which will be scrutinized for clues on the central bank’s outlook.
Earnings season continues this week, with several major companies set to report quarterly earnings, including Netflix, Bank of America, Johnson & Johnson, United Airlines, Tesla, American Express, AT&T, and Philip Morris. Analysts will be closely watching the results of these reports to assess the overall health of the market and the economy. Globally, Asian markets closed in the green while European markets finished with mixed results. Market commentary readers should maintain clearly defined stop levels for all positions. For reference, the SPY Seasonal Chart is shown below:
Note: The Vector column calculates the change of the Forecasted Average Price for the next trading session relative to the average of actual prices for the last trading session. The column shows the expected average price movement “Up or Down”, in percent. Trend traders should trade along the predicted direction of the Vector. The higher the value of the Vector the higher its momentum.
*Please note: At the time of publication Vlad Karpel does have a position in the featured symbol, SLV. Our featured symbol is part of your free subscription service. It is not included in any paid Tradespoon subscription service. Vlad Karpel only trades his money in paid subscription services. If you are a paid subscriber, please review your Premium Member Picks, ActiveTrader, or MonthlyTrader recommendations. If you are interested in receiving Vlad’s picks, please click here.
West Texas Intermediate for Crude Oil delivery (CL.1) is priced at $80.90 per barrel, up 0.09%, at the time of publication.
Looking at USO, a crude oil tracker, our 10-day prediction model shows mixed signals. The fund is trading at $70.84 at the time of publication. Prediction data is uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
The price for the Gold Continuous Contract (GC00) is up 0.01% at $2007.00 at the time of publication.
Using SPDR GOLD TRUST (GLD) as a tracker in our Stock Forecast Tool, the 10-day prediction window shows mixed signals. The gold proxy is trading at $185.53 at the time of publication. Vector signals show -0.07% for today. Prediction data is uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
The yield on the 10-year Treasury note is up at 3.606% at the time of publication.
The yield on the 30-year Treasury note is up at 3.814% at the time of publication.
Using the iShares 20+ Year Treasury Bond ETF (TLT) as a proxy for bond prices in our Stock Forecast Tool, we see mixed signals in our 10-day prediction window. Prediction data is uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
The CBOE Volatility Index (^VIX) is $16.95 at the time of publication, and our 10-day prediction window shows mixed signals. Prediction data is uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
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