Stocks Slide to Start December

Investors return from the US holiday weekend and enter December in a cautious mood. Bitcoin, a proxy for risk appetite is down 6.0% this morning. Technology stocks are leading the way lower in morning US trading where NASDAQ futures are down 0.8%, while Dow futures are down 0.4%.

Speculation on whether the Fed is going to cut interest rates this month appears to be ramping up again with Fed Chair Powell speaking this morning. The US Dollar is trading broadly lower, enabling Gold to gain 0.8%, Silver to rise 1.0%, the Euro to climb 0.3%, and the Yen to pop 0.7% while the Loonie holds steady. Commodity action is mixed with Crude Oil up 1.2%, Natural Gas down 1.3%, and Copper up 0.4%.

A busy week for economic news kicks off with Manufacturing PMI reports today. Canada Manufacturing PMI (previous 49.6) is due at 9:30 am EST, followed by US ISM Manufacturing PMI (Street 48.6) and US construction spending (street -0.1%) at 10:00 am. Highlights of the rest of the week include US ADP payrolls and Service PMI reports on Wednesday, then Canadian employment on Friday. US numbers are still catching up from the government shutdown.

It’s Canadian bank earnings week. In addition to the results, investors may look for commentary on the state of the Canadian economy, the direction of loan loss provisions, and potential dividend increases Scotiabank kicks off Tuesday, followed by CIBC and National Bank on Wednesday, and wrapping up with Bank of Montreal, RBC and TD Bank on Thursday. US earnings this week are concentrated in smaller cap tech names and discount retailers.

Barrick Gold* is rallying this morning, jumping 4.5% premarket after the company announced that it is considering an IPO of a minority interest in its North American mines, which are located primarily in Nevada. Airbus is down 8.5% in European trading this morning after a software issue grounded some A320s over the weekend, but it is already up off of its morning lows. *Shares of Barrick Gold are currently held in some portfolios managed by SIA Wealth Management.

*Shares of Barrick Gold are currently held in some portfolios managed by SIA Wealth Management. 

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