Wall Street set to open flat, Coca-Cola and American Express report earnings

2:52 PM 18 October 2019

  • S&P 500 futures hint at flat opening

  • American Express (AXP.US) and Coca-Cola (KO.US) beat revenue estimates

  • Charles Schwab (SCHW.US) to offer trading in fractional shares

Moods on the global stock markets are a bit mixed on Friday as investors are weighting disappoint Chinese data against prospects of an orderly Brexit. The US pre-market trading seem to mimic this performance as S&P 500 (US500) futures are set to open flat.

Source: xStation5

Nasdaq (US100) managed to break above the resistance zone ranging 7950-7970 pts yesterday but failed to break above the 8000 pts handle. In turn, we saw a reversal and a pullback below the aforementioned zone. The index is testing the zone once again today. In case of a break higher, the 8000 pts handle will be the near-term resistance to watch. One should keep in mind that a major move may occur at the opening of the next week with direction depending on the outcome of tomorrow’s votes in the UK House of Commons. Should MPs back the deal, a move towards the all-time high in the vicinity of 8050 may be on the cards. On the other hand, Johnson’s failure to gather required support could see US100 pull back with 7885 and 7830 pts handles being the support levels to watch.

Share price of Charles Schwab (SCHW.US) managed to break above the price zone at $38 and the 50-session moving average (green line). However, upward move on Tuesday was limited by the 100-session moving average (red line, $40.25 area) and it should serve as the nearest resistance to watch. In case a strong move higher occurs, the 200-session moving average (purple line) should act as the final resistance as it was guiding the downtrend for almost a year now. Source: xStation5

Coca-Cola (KO.US) and American Express (AXP.US) are two Dow Jones (US30) members that released their quarterly earnings reports ahead of the session open. Both companies managed to beat revenue estimates. American Express also reported an EPS of $2.08, 2.5% higher than median estimate. Earnings of Coca-Cola were not as upbeat as the company “only” matched market consensus of $0.56. Nevertheless, both companies issued an upbeat guidance for the final quarter of the year. 

Charles Schwab (SCHW.US) sent a shockwave through the US brokerage sector earlier this month when it announced removal of commissions for trading US shares and ETFs. Company’s founder and Chairman, Charles Schwab, made another offer announcement. The US broker will soon allow customers to trade fractional shares in a bid to attract younger investors. Along with earlier removal of trading commissions, the move further lowers the bar for entering the world of investing.

The content of this report has been created by X-Trade Brokers Dom Maklerski S.A., with its registered office in Warsaw, at Ogrodowa 58, 00-876 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. X-Trade Brokers Dom Maklerski S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.

Share:
Back