© Reuters.
Written by Liz Muir
Investing.com – Stocks closed solidly higher on Thursday after mixed economic data calmed concerns about a Federal Reserve interest rate increase.
However, Friday’s mood may change, depending on what bankers say about the economic outlook, consumer credit quality, and business activity. Major banks kick off the first-quarter earnings season early Friday with reports from JPMorgan Chase, Citigroup and Wells Fargo.
The banking system came under pressure from rising interest rates, which reduced the value of bond holdings. Higher interest rates have also cooled deal markets and reduced demand for mortgages and other credit products.
The Federal Reserve must now consider the possibility of a slowdown in lending activity before making its next decision to tackle inflation. The Fed’s expectations now indicate a final interest rate hike of 5.1%, which means that interest rates will rise again next May by 0.25%. While some market participants believe that the Fed will stop raising interest rates at the next meeting.
Here are three things that could affect the markets tomorrow:
1. Retail sales
Release for March is expected at 15:30 ET (12:30 GMT). Analysts expect an annual increase of 5.9% versus 5.39% in the previous month, and a monthly contraction of 0.4%, similar to the previous figure.
2. Bank earnings reports
JPMorgan (NYSE:) is expected to report earnings per share of $3.41 on revenue of $36.1 billion. Citigroup (NYSE:) is expected to report earnings per share of $1.70 on earnings of $20.05 billion. Wells Fargo is expected to report earnings per share of $1.12 on revenue of $20.1 billion.
3. UnitedHealth earnings
Major insurer UnitedHealth (NYSE:) Group is expected to report earnings per share of $6.17 per share, on revenue of $89.7 billion.
markets today
Standing around the corner from the record levels with the strong decline in the producer price index, which indicates that the US inflation is declining and the Fed is not forced to follow the path of tightening and raise strongly.
And with the decline in interest rate expectations and the expectation of a recession, as mentioned in the Fed minutes yesterday, the chances of .
If retail sales came in lower than expected, and banks show a strong decline in the post-earnings conference in lending activity, we may see gold heading for its record level.
Read the details:
Today, Brent and West Texas Intermediate crude declined by 1%, after OPEC + issued its expectations that demand for oil will decline, in light of recession expectations.
As for the major US indices, they recorded strong gains today, in light of the optimism that pushed yields to decline strongly, and technology stocks advanced.
As for it, it fell below the 101 level, to close at 100.680, giving the markets room to breathe, and it rose to 1.1047, and the major currencies also rose with the decline of the dollar.
