Earnings are Paving a Smooth Road to Recovery, the Dollar Could Fall, GBP/USD Potential Short Term Setup

Yesterday’s U.S stock session was all about earnings as some of the largest names posted their reports for the third quarter. The major indices started the day on a negative note, but managed to regain strength during the intraday session. The intraday turnaround was backed by promising outlooks, from some of the large caps.

The indices dropped at the opening bell as CIT Group INC. dropped by 11.54% due to a sudden headline mentioning that CEO Jeffery M.Peek will resign at the end of the year. The commercial lender immediately took a blow as analysts assumed that the sudden move could lead the company to file for bankruptcy chapter 11.

Despite the negative start J&J and Intel both reported better than expected results. Johnson & Johnson reported moderately higher third-quarter earnings but its sales were a disappointment. Even though J&J’s report was better than expected the stock dropped by over 2%. Intel, on the other hand reported a drop in profit but posted reports and expectations that exceeded the street’s expectations. The stock jumped at the start of the session, but failed to follow through, throughout the day. Intel finished the session higher by a mere 0.26%.

From a technical point of view the major indices are still showing positive signs, but have yet to break major resistance. The S&P500 broader market index, is now trading around its prior high.

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