Falling Oil Pulls New York Futures Higher Ahead of Apple Earnings
According to Times Brasil, contracts rise on Monday morning with a decline in Brent, while investors await Apple's balance sheet and the US elections.
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM TIMES BRASIL · 2 MIN
The New York stock exchanges began Monday, November 2, with futures rising, driven by a sharp drop in oil. According to Times Brasil, the improvement comes after a week in which the main indices closed down, and comes at a time of dense agenda for the American market.
This Monday morning, futures contracts for the S&P 500 rose 0.5%, those for the Nasdaq-100 advanced 0.8% and those for the Dow Jones gained 310 points, or 0.6%. According to the report, the rise was driven by the fall in oil.
Oil fell sharply. Brent fell 4.5%, to US$ 108.38 per barrel, while WTI gave up more than 4%, to US$ 99.31 per barrel. Energy prices at this level tend to put pressure on inflation, which makes the commodity a thermometer that the interest market follows closely.
The week brings company balance sheets, employment data in the United States and legislative elections in the country. Among the highlights, Times Brasil mentions Apple, whose balance sheet investors are waiting to measure the pace of the technology giant.
In the interest rate market, the 10-year Treasury was at 4.911%, with a drop of 0.023 points. The VIX, an index that measures the expected volatility of the S&P 500 and is known as a fear meter, was at 18.95 points.
The background picture is less encouraging. According to Times Brasil, technology weighed on the market and October closed in the red, which shows that this Monday's recovery still needs to gain momentum.
What changes for the investor
For those who invest in shares and interest, the message is to be cautious when reading a single trading session. Cheaper oil tends to alleviate pressure on inflation and, in theory, helps to contain long interest rates, which tends to favor growth stocks, such as technology. This effect, however, depends on what Apple's balance sheets and employment data show in the coming days, and the American legislative election adds a factor of uncertainty. The rise in futures does not guarantee continuity, and it is worth observing whether the technology sector recovers ground before drawing conclusions.
Automatically translated from Portuguese.
