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

• 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.