Reports that President Trump has dialled down his threats related to firing Fed Chair Powell has sparked a rally in the US Dollar, suggesting that concerns about the independence of the Fed had been weighing in the currency. Gold is down 0.9%, the Aussie is down 1.0%, the Euro, Loonie and Yen are all down about 0.6%. Bitcoin is down 0.9% while other cryptocurrencies are up 1-4% as crypto regulation legislation continues to advance in Congress.
Digesting yesterday’s US index gains of 0.3%-0.5%, US index futures are between down 0.2% and up 0.2% this morning. In Europe today, the Dax is up 0.9% and the FTSE is up 0.3%. Crude oil is up 1.0%, while Copper is down 0.5%.
In earnings news today, Pepsico ($2.12 vs Street $2.03) beat the Street on EPS and sales. GE Aerospace* and Netflix* are scheduled to report results later in the day.
US retail sales (0.5% vs Street 0.1%), the US Philadelphia Fed Manufacturing Survey (15.9 vs Street -1.0), and US weekly initial jobless claims (221K vs street 235K) all came in significantly better than expected – signs of a strong economy. Four Fed officials are speaking today, and NAHB housing market data is due at 10:00 am EDT.
*Shares of GE Aerospace and Netflix are held in portfolios managed by SIA Wealth Management.