U.S. Stocks To Go Up On Market Optimism
Trade12 | Oct 23, 2017 02:54AM ET
After a mostly positive earnings week during the previous week, stocks and futures in the United States are projected to rise higher due to a number of factors.
Just recently, the U.S. Senate have announced that they have approved blueprint of their budget for the fiscal year 2018 which will allow Republicans to easily push for a tax-cut package without the need for the support of Democrats.
The Republican-dominated vote regarding the budget was decided last Thursday and would contribute around $1.5 trillion for the next ten years to the federal deficit. This announcement sent the U.S. dollar index to trade 0.39% higher against six other major currencies.
Due to this, the outlook for a corporate tax reform in the United States being implemented comes closer drove global stocks to trade higher from the beginning of the previous week until the end driven by the outlook from Yellen as well as upbeat September home sales data.
The previous week which happened to be an earnings week also sent most indices higher with the Dow Jones Industrial average crossing the 23,000 level. The DJIA crossed 23,000 for the first time after the third quarter earnings report of IBM (NYSE:IBM) surprised investors and beat most analysts estimates.
The markets are currently positive and has sent most indices to trade higher due to an upbeat outlook for the current earnings season. The S&P 500 futures traded 0.21% during the previous week while the Dow futures recorded 87 points higher or 0.38% up.
Among the biggest movers during the previous earnings week included PayPal Holdings Inc (NASDAQ:PYPL) who posted earnings beat for the third quarter sending its shares up by almost 7%. The company posted an EPS of 46 cents beating most estimates of 43 cents per share while their revenue has grown by 21% from $2.67 from the same quarter last year to $3.24 billion versus most estimates of $3.18 billion. However, stocks such as General Electric (NYSE:GE), eBay Inc (NASDAQ:EBAY), and Alcoa (NYSE:AA) mostly missed on most earnings expectations.
Investors are looking forward to a week of another earnings report week that is expected to boost the performance of indices further supported by the market’s positive outlook for economic growth. Top stocks such as Apple (NASDAQ:AAPL) in the coming weeks are expected to send the U.S. market to trade higher during the week.
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