Once again there are a plethora of important US corporate brands reporting quarterly figures today. Although not all of these are constituents of the S&P 500, they do tend to give a sense of direction for expectations across the indices. Today will see Verizon, Coca-Cola, McDonald's, Microsoft and Apple all reporting, giving us a spread over numerous different sectors. The first week-and-a-half saw the template of better-than-expected figures being posted, however the last week has seen this early form disappear.
Today will see the US report their latest monthly consumer price index figures and Federal Reserve chair, Janet Yellen, will be watching to assess the inflationary impact of the Fed’s interest rate decision.
Having enjoyed a steady rise from mid-May up into early July, the index has somewhat plateaued since then. It looks to once again be mustering an attempt to break through the psychological 2,000 level. If corporate earnings can continue to outperform, then the index will have a better chance of clearing this hurdle. Until then, the 50-day moving average continues to offer support.