Hello traders, and welcome to Tuesday’s trading session, where the markets are finally waking up after a relatively quiet start to the week. Today marks the true beginning of the earnings season, and the calendar is packed with major companies across multiple sectors reporting results. Before the opening bell, we’ll get numbers from GE Aerospace, Coca-Cola, and Philip Morris, followed later in the day by Netflix, one of the most closely watched reports of the week. In addition, key players from the defensive sector, such as Lockheed Martin and Northrop Grumman, are also set to publish earnings. Altogether, Tuesday brings a strong mix of consumer staples, industrial, and tech-related earnings that could set the tone for the rest of the week.
Of course, all eyes are also turning toward Wednesday, when Tesla will release its results — arguably the highlight of this earnings cycle so far. But before that, today’s macro calendar offers only limited data due to the ongoing U.S. government shutdown. The main number to watch is from Canada, where monthly inflation (CPI) is expected to come in at -0.1%, signaling easing price pressure. The result will likely influence the Canadian dollar, especially in light of the recent dovish tones from the Bank of Canada.
Now, looking at the market action, sentiment appears to have turned decisively bullish on indices. After the recent turbulence, major benchmarks are showing strong signs of a reversal and are climbing significantly higher. Optimism has returned, and investors seem ready to take on more risk ahead of the earnings flood. The currency market reflects a similar shift in tone. The American dollar is regaining strength, reversing last week’s softness, while the Japanese yen continues to weaken sharply. The New Zealand dollar is also under pressure, extending its losing streak.
Turning to commodities, gold remains unstoppable, extending its push to the upside as investors continue to treat it as a safe-haven hedge despite the broader risk-on sentiment. Meanwhile, oil is showing early signs of a rebound, though it remains deeply entrenched in a bearish trend after hitting fresh multi-month lows on Monday. The recovery attempt is cautious, and buyers will need to sustain momentum to change the broader outlook.
To sum up, Tuesday brings a much-needed injection of excitement — both from corporate earnings and market reversals. With the U.S. dollar strengthening, indices rallying, and gold still shining, traders should prepare for a potentially volatile and eventful day as markets digest a busy mix of earnings and macro developments.