Building on yesterday’s US index gains of 0.7% to 1.6%, US index futures are trading flat to up 0.7% with NASDAQ futures leading the way higher again. European bourses are also broadly in the green with the Dax up 0.3% and the FTSE up 0.6%. In Asia Pacific trading, the Nikkei and the Hang Seng soared 2.4% and 2.2% respectively.
This resurgence in stocks continues to coincide with the heart of earnings season and positive results coming out from across a number of sectors. Companies reporting results that are either better than expected or not as bad as feared include Boeing (up 3.7% premarket), Visa (up 2.5% premarket), Texas Instruments (up 7.1% premarket), Hilton* (up 5.0% premarket) and Biogen (up 6.1% premarket) Tesla (up 11.1% premarket) disappointed on earnings but rallied on the news that the rollout of new, cheaper electric vehicle models has been accelerated. After the close today, results are due from Meta Platforms*, Chipotle*, Lam Research*, IBM, Ford, and many others.
Cryptocurrencies are not participating in the renewed confidence party today, with Bitcoin up 0.1%. Neither are small caps with Russell 2000 futures down 0.2%. On the other hand, Gold continues to ease back on easing investor fears, sliding 0.6% this morning. Commodity action is mixed with Copper up 0.6% and US Crude Oil down 0.4%. The US 10-year treasury note yield is holing steady near 4.6%.
Today’s North American economic numbers have come in soft. Canada retail sales (-0.1% vs street 0.1% and previous -0.3%) declined for a second straight month which was a negative surprise to investors. In the US headline durable goods orders (2.6%, previous revised down to 0.7%) increased but last month was revised down significantly. Durable goods orders excluding defense came in short of expectations and also saw a downward revision (2.3% vs previous 2.5%, previous revised down to 1.5% from 2.2%).
*Shares of Hilton, Meta Platforms, Chipotle, and Lam Research are held in portfolios managed by SIA Wealth Management.