Tuesday July 18th

18-07-2017

Earnings season in the spotlight on Wall Street, as Goldman Sachs, BofA report

U.S. stock index futures pointed to a relatively flat open on Tuesday, as investor attention shifted to the bumper pack of earnings set to come out. In earnings news, IBM is one of the major names set to report. Bank of America and Dow components Johnson & Johnson and Goldman Sachs reported earlier on Monday. On the data front, import prices fell 0.2 percent last month, as expected. The Housing Market Index and Treasury International Capital (TIC) data will follow this at 10 a.m. and 4 p.m. respectively. Meanwhile in oil, prices edged higher in morning trade, yet gains were capped as high supplies from both the U.S. and OPEC producers weighed on sentiment. At 8:32 a.m. ET on Tuesday, U.S. crude was trading around $46.75, while Brent hovered around $49.20. When it comes to U.S. politics, two more Republican senators announced Monday that they would oppose the current Republican health care bill. Following the news, Senate Majority Leader Mitch McConnell called for a vote to repeal Obamacare without an immediate replacement, after the latest attempt to overhaul the U.S. health care system lost momentum. In Europe, bourses were mostly in negative territory during early trade, while Asia-Pacific markets finished trade under pressure. Japan's benchmark Nikkei 225 index slid 0.59 percent, or 118.95 points, to close at 19,999.91 and South Korea's Kospi edged up 0.04 percent, or 0.94 points, to end at 2,426.04. The Hang Seng Index reversed earlier gains to edge down 0.06 percent. Mainland markets closed higher a day after falling on what some have termed "Black Monday." The Shanghai Composite rose 0.33 percent, or 10.4668 points, to close at 3,186.9316 and the Shenzhen Composite advanced 0.599 percent, or 10.7868 points, to finish the session at 1,811.3263. Gold prices rose to a two-week high on Tuesday as the dollar dipped to multi-month lows amid fading prospects of further rate hikes by the U.S. Federal Reserve this year and doubts whether President Donald Trump would be able to push through healthcare reforms. Spot gold rose 0.3 percent to $1,237.05 per ounce at 0328 GMT, after touching $1,238.27, the highest since July 3, earlier in the session. U.S. gold futures for August delivery rose 0.3 percent to $1,236.90 per ounce.