This morning, the S&P 500 Index e-mini futures (ES-Z2) are trading lower by 0.50 points to $1435.50 per contract. The flat stock market occurs as the U.S. Dollar Index futures (DX-Z2) trade lower by just 0.02 cents to $80.05 per contract. Basically, the major stock indexes continue to trade inverse to the U.S. Dollar Index. The European stock markets are all trading flat ahead of the U.S. markets opening for trading. It seems that the European stock market is looking to the U.S. markets for guidance.
Last night after the closing bell, earnings season officially kicked off with the earnings release from Alcoa Inc (NYSE:AA). Traders should remember, Alcoa Inc is really no longer a market moving stock. AA stock is trading lower by 0.15 cents ahead of the opening bell at the New York Stock Exchange. Next week, the corporate earnings reports will be in full effect. Later this week, J.P. Morgan Chase & Co (NYSE:JPM), and Wells Fargo & Co (NYSE:WFC) will report earnings. These stocks can move the markets after they report their earnings. Traders should also watch stocks such as Netflix Inc (NASDAQ:NFLX), and Apple Inc (NASDAQ:AAPL) to be volatile for the remainder of the trading week.
The NIKKEI 225 Index (Japan) was very weak last night declining lower by nearly 2.0 percent. Traders should and must watch for weakness in the Japanese ADR’s if the U.S. markets are weak. Leading stocks such as Sony Corp (NYSE:SNE), and Toyota Motors Corp (NYSE:TM) are just a few Japanese stocks that could be in play today.