The major averages in the US were down on Wednesday April 1st. There was no major economic news of note to drive the price action, but nonetheless, overnight selling in reaction to China’s PMI reading pushed most sectors into the red. There were a few major names that finished in positive territory including V 0.6%, COP 1.22%, T 0.73%, Dis 0.52%, COP 1.22%. However, pressure amongst others, inlcuding GOOGL -.94%, WMT -1.87%, JNJ -1.44%, JPM -1.04%, and others kept the overall move negative.

The major indices find themselves at the low end of their ranges. The Dow Jones Industrial Average is sitting on support with increasing pressure to the downside. The S&P 500 is also in a similar pattern along with the Nasdaq 100. The Russell 2000 performs with relative strength. Volatility is stuck at the low end of the range even after the recent weakness in the chart. Technicals indicate slowing momentum.   Much of that is due to the upcoming expectations from market participants regarding earnings. Earnings reports come out every day, but the months of January, April, July and October are the most active and are considered earnings season. As markets prepare for upcoming earnings, they also have to consider news events. Some of the major ones to consider in the next 2 weeks:

– US unemployment Rate

– EUR ISM Non- Manufacturing PMI

– BOJ Monetary Policy Statement

– FOMC Meeting Minutes

– US Retail Sales

– ECB Minimum Bid Rate

So much of this will drive the value of currencies, which center around the moves in the US Dollar. The dollar’s strength is not in question on the long-term trends, but, it may bring questions about the valuations of major companies who do business internationally. There’s a lot of anticipation from investors for this earnings season because of the strength in Q1 from the US Dollar.

 

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