Earnings Expectations

Good morning. Given the lack of notable headlines, it seems like we're definitely in the quiet period before the earnings storm. While most overseas markets are trading higher, there's little activity on the newswires. Like yesterday, oil prices and reduced expectations for a Fed rate cut are in play ahead of earnings season.

Meanwhile, premarket trading is starting to be more active. Upside movers ahead of the opening bell are DIVX, CHRD, PCOP, AIXG, TLCV, NUVO, INCY, MEMY, CTHR, ROSE, LJPC, DNDN, LEND, CEGE, AMSC, TELK, IDMI, PLXT, LMRA, CNTY, and VCLK. Premarket losers are ADLR, CACH, IIJI, LWSN, MEDI, MICC, and JSDA.

Choppy trading is expected while the market waits for earnings to set the tone. Analysts have lowered earnings expectations quite a lot since the start of the year so the question of the moment is whether expectations have now been set low enough. How you answer that question should ultimately determine how aggressively you should be positioned in front of earnings. Have a terrific Tuesday!