Okay, so there's this thing called earnings season where companies tell us how much money they made in the past few months. Some big banks in Europe, like Deutsche Bank and Barclays, said they made more money than people expected, but their stock prices still went down because investors weren't very excited about it.
Meanwhile, some other companies had less sales than before, which also made people unhappy. There are also some important numbers coming out soon that can show how well the whole US economy is doing, and this might change what the Federal Reserve does with interest rates. The Dow Jones, a big list of 30 famous companies, has been losing value for three weeks but it's expected to end this week with a small gain. But if people start feeling really bad about things, the Dow Jones could fall even more and test some important levels that might make it go up again later.
Read from source...
1. The article title is misleading and sensationalist, as it implies that earnings are failing to impress traders, which is not entirely true. Some companies like Deutsche Bank and Barclays reported decent earnings numbers, but their stocks still fell due to other factors such as market sentiment or expectations management.
2. The article mentions the US GDP data as a crucial factor for the Fed's monetary policy decision, but it does not provide any evidence or analysis of how this data might affect the policy. It also assumes that the Fed is already leaning towards a certain direction and needs the GDP data to confirm its bias.
3. The article uses vague terms such as "a massive tailwind" for the equity markets in the US and Europe, without specifying what kind of tailwind or how it would be beneficial for the markets. It also does not explain why the markets desperately need this tailwind, or what factors are holding them back.
4. The article makes an emotional appeal by using phrases such as "desperately need" and "fail to impress", which convey a sense of urgency and dissatisfaction among traders and investors, without providing any objective data or analysis to support these claims.
5. The article introduces the concept of a "dead cat bounce" without explaining what it means or how it applies to the current situation of the Dow Jones index. It also uses technical terms such as "double bottom" without defining them or showing examples of how they are used in chart analysis.
Bullish
Reasoning: The article discusses mixed earnings results from European banks and consumer companies, but it also highlights some decent earnings numbers from Deutsche Bank and Barclays. Additionally, the US GDP data is expected to either confirm or challenge the Fed's current monetary policy stance, which could influence equity markets in the US and Europe. The article suggests that the Dow Jones index is set to close higher this week after three consecutive weeks of losses, which indicates a possible bullish sentiment towards the market. Furthermore, the mention of a potential double bottom formation if the support level is tested again implies a positive outlook on future price movements.
- Barclays: sell (negative earnings surprise, stock in negative territory)
- Deutsche Bank: hold (decent earnings numbers, but not enough to impress investors)
- Neste: buy (potential rebound after sales fall, consumer sector still attractive)
- Dow Jones: hold or consider buying on dips (index likely to close higher, but volatile price action)