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US equity indices calm ahead of market opening and corporate earnings

28 Jul 2020 03:02 PM

US equity index contracts have witnessed a slight decline on the start of trading on Tuesday, as markets await a number of major earnings reports to be released today.

Markets are still monitoring the effects of the Coronavirus pandemic and the potential support on offer to small businesses.

Also, the Fed begins a two-day monetary policy meeting today, with their interest decision to follow. The Fed kept interest rates near zero levels at 0-0.25% at their meeting in June.

The Nasdaq is up nearly 2%, supported by gains in technology companies, as shares of Netflix, Amazon and Apple rose.

It is worth noting that yesterday gold prices approached $2,000 an ounce, after reaching an all-time high at $1,988, driven by the falling US dollar.

Today, a number of corporate earnings will be issued before the market opens, led by McDonald's and Pfizer. Meanwhile, after the closing bell, earnings will be issued by eBay, Starbucks and Visa.

Technically, looking at the Dow Jones Industrial Average contracts, we pointed out in yesterday's analysis a double top pattern, and as we note the prices returning to retest the neckline. If they remain below the 26,600 level and exceed the moving average level 100, we may see it targeting the 26,000 level. The pattern is at a 61.8% Fibonacci retracement level.

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