1.Big banks earning today.
Friday will mark the start of the new earnings season, with Citigroup (NYSE:C), Wells Fargo (NYSE:WFC), and JPMorgan Chase (NYSE:JPM) being the leading banking giants to release their quarterly figures.
Due to the increasing interest rates, the banking system has been under pressure, as the value of bond holdings has been affected. As a result, the deal markets have been quieter, and the demand for mortgages and other credit products has decreased.
Furthermore, the Federal Reserve policymakers have expressed concern over the banks’ health, and they have predicted a mild recession this year.
For this reason, the upcoming earnings reports from these large US banks will be scrutinized even more carefully than before, with investors paying attention to the bankers’ insights on the economic outlook, consumer credit quality, and business activity.
2.Japan Going UP.
Western investors are paying attention to the previously overlooked Japanese stock market after news of Warren Buffett’s increased interest in Japanese stocks.
The Nikkei 225 index, which had a decade-long bull run in the 1980s, reached its all-time high of 38,915 on the last trading day of 1989. However, the bubble burst with the arrival of the new year, and the index has remained below that level for over 30 years. Nonetheless, the Nikkei has seen an increase in demand this year due to signs of easing inflation and a change in leadership at the Bank of Japan, which has led to bets that the central bank will maintain its ultra-easy monetary policy in the near term.
The news of Warren Buffett’s increased holdings in Japan’s major trading houses, along with rumors of his consideration of more local investment, is likely to generate even more widespread interest.
3.Tesla has reduced the price.
On Friday, U.S. futures traded slightly lower as investors consolidate after the strong gains in the previous session.
The Dow futures contract had dropped 95 points, or 0.3%, while S&P 500 futures inched 7 points, or 0.2%, lower, and Nasdaq 100 futures fell 27 points, or 0.2%.
The markets had closed higher on Thursday, with investors feeling positive about the cooling of March’s producer prices, which suggests a less hawkish Federal Reserve in the future.
The focus for Friday will be on the earnings reports of several large banks, as well as UnitedHealth, a major insurance company.
In other news, Tesla has reduced the price of its Model 3 in Germany by approximately 4.5%, according to information on its website. Boeing has also stopped delivering some 737 MAXs due to a new supplier quality issue.
4.Oil prices Go up in big steps.
On Friday, crude prices rose slightly, as the market was poised to mark a fourth consecutive week of gains, due to indications of a tightening global market.
At 04:30 ET, U.S. crude futures were up 0.1% at $82.25 per barrel, while the Brent contract increased to $86.10 per barrel.
On Thursday, the Organization of Petroleum Exporting Countries’ monthly report predicted that global markets would be under-supplied by about 2 million barrels per day in Q4 due to the cartel’s recent cutbacks.
Traders will be watching the International Energy Agency’s monthly oil market report, expected later on Friday, to see whether the Paris-based organization downgrades its global demand forecast amid the stumbling macroeconomic growth.
