Client support: Phone: (+357) 22314160

FX & CFD trading involves significant risk


Show news:

01.02.2011 14:09

Before the bell: U.S. stocks were poised to open February with modest gains Tuesday as investors await corporate earnings and a report on manufacturing, while continuing to eye the ongoing protests in Egypt.

Dow Jones industrial average (INDU), S&P 500 (SPX) and Nasdaq (COMP) futures were higher ahead of the opening bell. Futures measure current index values against perceived future performance.

U.S. stocks posted solid gains Monday, as positive earnings from Exxon Mobil and rising commodity prices overshadowed the political unrest in Egypt.

Protests in Egypt resumed Tuesday and tensions were still far from resolved, with Standard & Poor's announcing it cut Egypt's foreign currency rating. The news comes a day after Moody's downgraded its rating on Egypt's debt.

But some investors think the fears that sparked a sell-off in the stock market late last week may have been overblown.

"I can't imagine the worry over Egypt is gone, but maybe we've worried enough that we've become a little numb to it and have already embedded the worries in stock prices," said Bruce McCain, chief market strategist at Key Private Bank.

He said when the protests began to escalate on Friday, many investors priced in the worst-case scenario, so stocks will only move lower again if the situation becomes much worse than people had been anticipating.

But there are other countries to worry about as well, McCain warned.

"So many of these emerging countries are suffering from food inflation that Egypt isn't the last one," he said. "If Egypt goes down, what's next? It could turn into a domino effect of governmental collapse and that would, at the minimum, be nerve-wracking for markets."

Economy: The Institute for Supply Management's index of manufacturing is due after the start of trading. Economists forecast the index to fall to 58.4 in January, from a revised reading of 58.5 in December. Any number above 50 indicates growth in the sector.

Also due after the bell, construction spending is expected to have dropped 0.4% in December, following a rise of 0.4% in November.

Auto and truck sales for January are due throughout the day.

In Washington, D.C., the Senate Budget Committee kicks off three days of hearings on the economic outlook, tax reform and challenges to the economic recovery.

Jobs back but pay stinks
At the end of the week, the government releases its January jobs report, and investors will be eyeing the report closely for signs of improvement in the labor market.

"There's continuing nervousness ahead of this number," said McCain. "We can look past one bad report but another bad report in a row would certainly make people worried."

Companies: Tuesday morning BP (BP) reported quarterly earnings that topped Wall Street expectations, but logged an annual loss due to the Gulf of Mexico oil spill. The company announced it will start paying dividends to shareholders again. Dividends will be 7 cents a share for the fourth quarter of 2010. Shares of the oil giant slipped more than 2% in pre-market trading.

Before the opening bell, United Parcel Service (UPS, Fortune 500) logged a 44% jump in profit that beat forecasts and said it expects earnings per share to climb to a record high for 2011. Shares of the shipping company rose 2% on the news.

Market Focus

  • U.S.: Industrial Production (MoM), September 0.1% (forecast 0.2%)
  • Britain can't get full single market access with free movement concessions - Merkel
  • Earnings Season in U.S.. Major Reports of the Week
  • New Zealand CPI, 3Q: 0.2% q/q (forecast 0%), 0.2% y/y (forecast 0.1%)
October 2016
  • 2016
  • 2015
  • 2014
  • 2013
  • 2012
  • 2011
  • 2010
  • 2009
  • 2008
  • 2007
  • 2006
  • 2005
  • 2004
  • 2003
  • 2002


All posted material is a marketing communication solely for informational purposes and reliance on this may lead to loss. Past performance is not a reliable indicator of future results. Please read our full disclaimer.

To maximize our visitors browsing experience TeleTrade uses cookies in our web services. By continuing to browse this site you agree to our use of cookies. If you disagree, you may change your browser settings at any time. Read more

  • © 2011-2016 TeleTrade-DJ International Consulting Ltd

    TeleTrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.

    The company operates in accordance with Markets in Financial Instruments Directive (MiFID).

  • The information on this website is for informational purposes only. All the services and information provided have been obtained from sources deemed to be reliable. TeleTrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.

  • TeleTrade cooperates with SafeCharge Limited, which is an electronic money institution authorized and regulated by the Central Bank of Cyprus and is a principal member of MasterCard Europe and Visa Europe. We also cooperate with Moneybookers and Neteller, which offer electronic e-wallet services authorized and regulated by the Financial Conduct Authority.

    Please read our full Terms of Use.

  • To maximize our visitors browsing experience TeleTrade uses cookies in our web services. By continuing to browse this site you agree to our use of cookies. If you disagree, you may change your browser settings at any time. Read more

    TeleTrade-DJ International Consulting Ltd currently does not provide its services to residents or nationals of the USA, and also doesn't provide retail Forex and CFD accounts to residents or nationals of Belgium.

Служба технической поддержки:

  • Онлайн-консультация
  • Заказать звонок
  • Написать письмо
Connect with Us
Share on
social networks
Request a callback
Top Page