Markets Quiet as May Wraps Up

Canada Earnings

US stock markets are relatively quiet as the final trading day of May begins. Negotiations between the US and Iran continue, with rumours still circulating but little in the way of substantial developments. With earnings season largely winding down, attention is now shifting back toward economic data and geopolitical risk.

Earnings reactions are sharply divided this morning. Dell Technologies is up 33.9% in premarket trading after reporting earnings of $4.86 per share, well ahead of the Street at $2.96. Gap Inc. is down 15.2% despite reporting earnings of $0.38 per share, slightly ahead of the Street at $0.37.

Canada appears to have entered a recession after Q1 GDP came in at an annualized -0.1%, below the Street at 0.5%. The previous quarter was revised down to -1.0% from -0.6%, marking a second consecutive negative quarter. The Loonie has been falling on the news.

US futures are modestly positive. NASDAQ futures are up 0.1%, while Dow futures are up 0.3%.

Overseas, Asian markets were higher, with the Nikkei up 2.5% and the Hang Seng up 0.7%. In Europe, the DAX is up 0.1%, while the FTSE is up 0.2%.

In Commodities, Crude Oil is down 1.4%, Gasoline is down 0.1%, Gold is up 0.4%, Copper is down 0.7%, and Silver is down 0.5%.

In FX and Rates, the US 10-year Treasury note yield is sliding below 4.50%, while the US 30-year Treasury note yield is sliding below 5.00%. The US Dollar is steady to positive against other currencies today. The Euro is flat, while the Loonie is down 0.3%.

The Iran situation remains murky, and tensions could rise or fall at any time without warning. Focus now turns to economic news, with Chicago PMI due later this morning and national Manufacturing PMI reports set to roll out over the weekend and into Monday.

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