Dow at new highs amid record low VIX

Joshua Mahony MSTA Scope Markets

A stellar earnings season has helped US markets reach new highs once more. With Amazon earnings due up next, could we see yet another leg higher?

Dow hits another high, as dollar index trades at 14-month low
Twitter earnings disappoint as revenues fall
Amazon pre-earnings spike sees Bozos overtake Buffett

US markets have powered to yet another high this morning, with earnings season providing a welcome windfall for investors. Despite Trump’s glee at any new record high, the true market perception of a nation’s economic and political fortunes are reflected by its currency, which trades at a 14-month low (dollar index). On top of that, the VIX has fallen to a new record low as we enter the summer lull, reflecting a lack of volatility in this recent leg higher for stocks.

The US earnings season continues to dominate the market outlook, with Twitter shares sliding despite recent talk of a potential bottom in its share price. The fact that Twitter has seen its user numbers stall at this stage of its development is certainly a worry, with the longevity of this platform coming into question once again. The deterioration in Twitter revenues highlights the fact that it simply cannot match the likes of Facebook when it comes to advertising effectiveness.

Amazon on the other hand is expected to flourish despite a slowdown in consumer activity in recent months. With the firm able to compete on price, ease of use, and selection, markets are buying the stock in anticipation of yet another blockbuster set of figures from the online giant. Today’s pre-earnings share price boost has pushed Jeff Bozos into the number one spot in terms of net wealth, and with the company showing little signs of slowing, we could see him remain there for many years to come.

Author

Joshua Mahony MSTA

Scope Markets

Joshua Mahony is Chief Markets Analyst at Scope Markets. Joshua has a particular focus on macro-economics and technical analysis, built up over his 11 years of experience as a market analyst across three brokers.

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