S&P500

The US stock market is ready for growth and is awaiting the inflation report for September.

On Tuesday, main US stock indices edged down ahead of the release of the September inflation report. The Dow dropped by 0.3%, the NASDAQ lost 0.15%, and the S&P500 fell by 0.2%.

Japan's Nikkei was down by 0.2%, while China's CSI300 added 0.9%.

Oil is trading near its highs: Brent is at $83.40 and WTI is at $80.

COVID-19 worldwide. The global infection rate is decreasing. Yesterday, +390K new cases were recorded in the world. The US and the UK reported +100K and +84K new infections respectively.

S&P500 4,350; 4,310-4,390 range.

The third-quarter earnings season starts in the US. JPMorgan, Bank of America, Citigroup, Wells Fargo, Morgan Stanley, and Goldman Sachs will present their earnings reports in the coming days. Analysts project mixed results - revenues are likely to stagnate, but profits are projected to remain strong. Stocks of the largest banks plunged by 0.8% yesterday.

Boeing received orders for 27 aircraft in September, down from 53 in August. That brings orders for the year so far to 710. For the year to date, Boeing has delivered 240 aircraft.

Today, the House of Representatives is likely to approve raising the US government debt limit by $480 billion to $28.9 trillion. The Senate passed legislation to raise the debt ceiling through early December.

The market is awaiting the release of the US inflation report for September, as well as the CPI. The question is, will inflation continue to slow down from its August reading or accelerate.

USDX 94.30, 93.90–94.60 range.

Yesterday, the US dollar index attempted to break the upper boundary of the range but failed to consolidate and returned back. In case of an increase in the inflation rate, the greenback is expected to skyrocket.

USDCAD 1.2450, 1.2400–1.2500 range. A lot will depend on the US dollar today. In case of a stronger greenback, the pair will reverse to 1.2500. However, if the greenback remains at the same level, the pair is likely to go to 1.2400.

Conclusion: The market is awaiting the release of the US inflation report.