U.S. stocks saw limited buying after the decline at the end of the previous week, with earnings from major companies and long-term interest rates set to be the focus. Attention is centered on earnings reports from General Electric, General Motors, Intuitive Surgical and Netflix, as well as developments at the FOMC.
On the 19th, the Dow edged lower in the U.S. stock market, while semiconductor-related stocks in the S&P rebounded. Rising crude oil futures and higher long-term U.S. Treasury yields restrained movements in utility, real estate and bank stocks.
On the 20th, earnings from major companies and long-term U.S. interest rates will be the focus. Companies scheduled to report earnings include General Electric, General Motors, Intuitive Surgical and Netflix. Attention is also on a recovery in technology stocks and the resilience of earnings at non-AI-related companies.
U.S. economic indicators expected to be released include September housing starts and building permits, and September pending home sales. With the NAHB Housing Market Index remaining at a low level, the impact of high interest rates on the housing market is likely to be reassessed.
Attention is also warranted on oil prices, with supply concerns from the Middle East lingering against the backdrop of an announcement of attacks by the Houthis. The front-month WTI contract closed at the previous day’s high and could move in tandem with the Nikkei 225.