Stock indices rise as companies prepare for earnings season

JP Morgan's earnings exceed expectations

By Raed Alkhedr | @raedalkhedr | 5 July 2023

  • Profit-taking dominates gold

  • The IEA raises its oil demand forecast

  • JP Morgan's earnings exceed expectations

Gold relinquishes some of its gains

Gold saw some slight declines during Friday's trading after reaching a new peak in 2023 yesterday at $2048 per ounce. Gold benefited from the significant decline in the US dollar as disappointing economic data continues and markets prepare for the US Federal Reserve to end its monetary tightening pace and approach the end of the interest rate hike cycle. This contributed to the rise of non-yielding assets for the second week in a row, such as gold. Spot gold fell 0.2% to $2035.49 per ounce, with prices slightly below their highest levels in the previous session since March 9, and US gold futures fell 0.3% to $2049.40.

The International Energy Agency raises its oil demand forecast

Oil prices saw some gains during Friday's trading after the International Energy Agency raised its forecast for global oil demand in the coming period on the back of the recovery of the Chinese economy and expectations of a recovery in demand in the world's second-largest economy. It is expected to grow by two million barrels per day in 2023 to a record level of 101.9 million barrels per day. At the same time, the agency warned that a reduction in OPEC+ production could cause market imbalances and harm consumers after global prices continued to rise.

Brent crude futures rose 0.26% to $86.31 per barrel, heading for a weekly gain of 1.4%. Meanwhile, West Texas Intermediate crude futures rose 0.26% to $82.37 and is heading for a weekly gain of 2%.

Stock indices rise as companies prepare for earnings season

Dow Jones futures rose on Friday as investors look forward to the first wave of corporate earnings, taking into account recent inflation data about the economy. Futures contracts associated with the Dow Jones index rose 54 points or 0.16%. S&P 500 futures contracts remained stable, while Nasdaq 100 futures contracts fell by 0.5%.

US stocks have seen significant gains during this week's trading, with a sense of optimism prevailing after data showed a slowdown in inflation growth and an increased likelihood of the US Federal Reserve approaching its monetary tightening cycle.

JP Morgan announced its quarterly earnings yesterday, and stocks rose significantly after the bank announced record revenues for the first quarter that exceeded expectations. Earnings per share also exceeded market estimates.

JP Morgan reported adjusted earnings per share of $4.32 for the first quarter. First-quarter revenue was $39.34 billion.