Consumer Confidence, Earnings, and the Fed in Focus
US futures saw mixed performances in the Asian morning session on January 27. The Dow Jones E-mini dropped 90 points, while the Nasdaq 100 E-mini and the S&P 500 E-mini climbed 112 points and 13 points, respectively. Market optimism toward the Mag-7’s upcoming earnings sent the Nasdaq and S&P 500 higher.
Later Tuesday, US consumer confidence data and corporate earnings will influence buying interest in US stock futures. Economists expect the CB Consumer Confidence Index to rise from 89.1 in December to 90.9 in January. Typically, rising confidence indicates a pickup in consumer spending, bolstering the US economy. For context, private consumption accounts for around 65% of US GDP.
However, corporate earnings will be key to the near-term trends for US index futures. On January 27, United Health Group (UNH), Boeing (BA), General Motors Company (GM), Texas Instruments (TXN), and American Airlines (AAL) are among the marquee names to announce earnings results. Uncertainty about the outlook for Dow Jones-listed companies likely weighed on the Dow Jones this morning.
Key Technical Levels for Dow Jones, Nasdaq 100, and S&P 500
Despite the mixed morning, the Dow Jones E-mini, the Nasdaq 100 E-mini, and the S&P 500 E-mini traded above their 50-day and 200-day EMAs. The EMAs signaled a bullish bias, aligning with positive fundamentals.
Near-term trends will hinge on tariff-related headlines, USD/JPY trends, earnings, and US economic data. Key levels to monitor include:
Dow Jones
- Resistance: the January 13 record high of 49,901, and then 50,000.
- Support: 49,000 followed by the 50-day EMA (48,543).