The quarterly earnings season: When analysts remain alert to Wall Street

The trading of options via the CFD can be a very efficient way to benefit from leverage and exposure to a wide range of financial markets.

The CFD trading options on gives you the opportunity to anticipate future movements of financial instruments either an index or an action, long or short term.
As a trader, it is important to know what types of events affect the markets. The dates of certain economic events such as corporate earnings and economic statistics are in the economic calendar.

The quarterly earnings season arrives in the United States in the months following the end of a fiscal quarter, such as January, April, July and October. This is a season that saw the most profitable companies in the world to share their latest results. It is a period that is followed closely by all market participants but also by analysts.

Before each release of quarterly results, analysts try to predict what will corporate profits. If the results of a company are better than expected, generally, investors quickly try to buy shares and sellers reap the benefits of increased competition.

Similarly, if that company publishes the results worse than expected, traders will rush to cut prices to stimulate demand. However, with the activities, there is always an element of predictability and uncertainty that remains about whether the company will exceed expectations or not. But, for example, if the figures of the company reflect some weaknesses of the company that is interpreted as a signal of declining sales and the market will react accordingly.

If the price of a share of any component of the Dow Jones was up then it can affect the overall direction of the index. Positive results from a major company in a particular sector will his peers in the same group be drawn up with this company. However, all sectors have different weights because of their size and their ability to generate profits. The banking, pharmaceutical and energy tend to have more weight than others.

This creates a dynamic, for example, if a satisfactory economic report is published and the results of another good company to another area will be announced at the same time, the mood of traders will be raised and the Dow will rise.

In addition, the direction of the Dow Jones still has a strong influence on the CAC 40 in France.
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Please also note that while CFD can lead to profits but also losses that exceed your initial deposit. You must always make sure you understand the risks involved.