(Tuesday Market Open) With earnings season winding down, investors appear to be focusing more on geopolitical headlines once again. Stocks have seesawed amid worry over Turkey’s economy, with today’s action being to the upside as the nation’s currency gained ground. Strong earnings from Home Depot also appear to be helping sentiment.
This morning, U.S. stocks appeared poised for gains, based on equities futures trading before the opening bell, as the Turkish currency gained some footing. That was in contrast to Monday’s market, when U.S. investors appeared cautious as Turkey’s currency crisis continued. The Turkish currency hit a record low against the dollar on Monday but rebounded after the nation’s central bank said it would provide liquidity to the nation’s banks.
The currency crisis in Turkey, which suffers from high inflation, comes as the U.S. has said it is increasing tariffs on Turkish steel and aluminum. That adds to trade tensions already simmering between the U.S. and key trading partners including China that have led some market watchers to worry about the effect on globa
The new week could have a dual focus as investors closely monitor events abroad even as they watch retail earnings start rolling in at home.
The markets seem cautious Friday amid geopolitical concerns. A 13% decline in the Turkish lira this week and continued trade turbulence with China both appear to weigh on stocks.
The failed mergers might be one point of focus Thursday, and investors could also be watching inflation data.
A focus this morning appears to be $16 billion in Chinese goods that will be subject to a 25% U.S. tariff starting later this month.
This morning, investors appear to be focusing on momentum from a generally solid earnings season and letting trade talk simmer on the backburner.
The coming week might seem quieter after all the data and the Fed meeting of the previous week. But there’s still key inflation data on tap and some important earnings.
The July jobs growth presented mostly solid data if you look beyond the headline figure of 157,000 missing expectations. Trade with China remains a possible concern today.
The market looks like it might be on the defensive today amid more trade jitters and overseas weakness. Still, Tesla seemed to impress investors with its earnings late Wednesday.
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