The trading week got off to a strong start yesterday with US indices gaining 1.3%-2.1%. Overnight trading saw markets in China and Japan climb 0.6%-1.0%, and in Europe this morning, the DAX is up 0.7% and the FTSE is up 0.4%. The US Dollar is strengthening, sending the Euro and Loonie down 0.2% and Gold down 0.6%. Commodities are also weakening with Crude Oil down 1.0% and Copper down 0.4%. US index futures are up 0.2%-0.4%.
Service PMI reports are out from Europe this morning, with nearly everyone exceeding expectations and/or coming in above 50 in expansion territory. US ISM Non-Manufacturing PMI (street 55.2) is due at 10:00 am EDT. Canada job numbers are due on Friday. On Thursday, the Bank of England is widely expected to announce a 0.25% interest rate cut. China trade and inflation numbers are expected later in the week.
The heart of earnings season continues this week with the focus turning from the mega caps to not quite as large, medium, and small cap companies. Stocks continue to stage significant moves off of earnings numbers with Palantir Technologies* up 7.1% and Pfizer up 2.4% in premarket trading off of strong results and guidance while Caterpillar is steady premarket and Mercadolibre is down 5.3% after posting disappointing numbers.
Later today in the US, results are due from AMD. Tomorrow’s headliners include McDonalds, Disney, Uber, Doordash and AirBnb. In Canada today results are on the way from Suncor Energy, Great West Lifeco and others, followed by Shopify, Thomson Reuters, Manulife Financial and Nutrien Wednesday, Sun Life on Thursday and Constellation Software* on Friday.
*Shares of Palantir Technologies and Constellation Software are held in portfolios held by SIA Wealth Management.