Indices Rebound on Positive Technology and Bank Earnings

Shrugging off yesterday’s 0.2% to 0.5% correction for US indices, which was due to a combination of more weak housing data and Fed minutes being more neutral and less dovish than hoped, US index futures are bouncing back big time this morning with gains of 0.2%-1.0%.

NASDAQ futures have been leading the charge today, in a positive response to strong earnings from Nvidia* overnight ($6.12 vs street $5.60, up % premarket), positive guidance, and news of a 10 for 1 stock split coming as the shares reached $1,000 in overnight trading.

Meanwhile, TD Bank kicked off Canadian bank earnings season with a big beat (EPS $2.04 vs street $1.85, Revenues $13.8B vs street $12.6B), which was driven by strength in Canadian Banking and Capital Markets, which offset some softness in US banking. The bank also announced it is working to improve its anti-money laundering programs in the US following regulatory concerns. Shares are up 2.5% in US premarket trading. 

Overseas market action was very mixed overnight with the Hang Seng falling 1.7%, the Nikkei rising 1.3%, the FTSE flat and the Dax up 0.4%. Flash PMI reports have been rolling out overnight from around the world. Overall, manufacturing surveys have been a bit better than expected, service surveys have been a bit worse than expected but most have been around or above the 50 expansion/contraction line. US flash Manufacturing PMI (street 50.0) and flash Service PMI reports are due at 9:45 am EDT. US new home sales and Canada new house prices are also due to come out this morning.

Crude Oil is bouncing back this morning with a 0.75% gain. Metals are struggling again with Copper down 0.3%, Silver down 2.2%, Gold down 1.0% and Platinum down 1.1%.  

*Shares of Nvidia are held in portfolios managed by SIA Wealth Management.

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