Stocks Backslide as Earnings Season Starts
Thursday ended up being an odd day for equity markets where the NASDAQ soared 1.7%, but the large cap S&P 500 and small cap Russell 2000 only gained 0.7% and the Dow finished flat. This morning finds US index futures pulling back 0.2%-0.5% as traders assess the first day of earnings season with results from […]
Stocks Try To Bounce Back Between Inflation and Earnings Reports
Statements from the Bank of Canada yesterday and the European Central Bank this morning, after both banks held their benchmark interest rates steady, indicate that the “higher for longer” theme on monetary policy continues with bankers leaving the door open to future rate cuts but also indicating no near term plans to do so until […]
Stocks Fall, Traded Interest Rates Jump, as US Inflation Accelerates
US index futures have dropped off a cliff in the minutes following the release of a hotter than expected US inflation report. Through the morning ahead of the news, the three main US index futures contracts had been flat but now are down 1.1%-1.5%. Headline US Consumer Prices (3.5% vs street 3.4% and previous 3.2%), […]
Cautious Investors Await Inflation and Earnings Due Later This Week
A quiet start to the week in North America has continued this morning with US index futures trading up 0.1% to 0.3%. The US 10-year treasury note yield is holding steady near 4.40%. Overseas trading has been mixed with Asia Pacific markets rallying but European markets declining. The Nikkei rose 1.0% and the Hang Seng […]
Solar Eclipse Day Arrives With Traders Digesting a Quiet Weekend
Overseas markets rallied to start the trading week overnight in a move to catch up to Friday’s North American rally. Gains of 0.9% for the Nikkei, 0.6% for the Dax, and 0.2% for the FTSE, were moderate, however, compared with Fridays US index gains of 0.8% to 1.2%. US index futures are flat this morning, […]
Volatile Markets React To Employment and Political Developments
Today’s North American employment numbers were mixed. US nonfarm payrolls increased more than expected (303K vs street 200K, previous revised down by 5K to 270K), and average hourly earnings fell to 4.1% from 4.3% as expected, overall indicative of a strong economy and decreasing inflation pressures. Canada jobs, however, were surprisingly negative (-2K vs street […]
Stocks Bounce Back as Traders Await Fed Speakers and Nonfarm Payrolls
US index futures are up 0.2%-0.4% this morning, regaining their footing and bouncing back from the weakness seen earlier in the week. A decline in the Prices Paid inflation component of yesterday’s US ISM Services PMI report helped to ease fears of rising inflation for now. The US 10-year treasury note yield is holding steady […]
ADP Payrolls Suggest a Strong Economy
An attempt by bulls to fight back after US indexes lost 0.7%-1.0% yesterday has fizzled out amid more signs of a resilient US economy that support the case for interest rates remaining higher for longer. The US ADP Payrolls report exceeded expectations (184K vs street 148K, last month revised up to 155K from 140K), indicating […]
Treasury Yields Climb, Stocks Slide As Investors Reset Interest Rate Expectations
Building on the positive Manufacturing PMI reports that came out from China over the weekend and North America yesterday, European Manufacturing PMI reports out this morning have generally come in better than expected with Italy and the UK climbing back above 50 and into expansion territory. Indications of an improving global economy have sparked rallies […]
Stocks Rise as Traders Digest Data and Powell Comments
Equity traders have returned from the Easter weekend in a positive mood. Boosted by better than expected Chinese Manufacturing PMI and Non-Manufacturing PMI which both increased from last month and came in above 50 in expansion territory, Shanghai rallied 1.2% overnight and Hong Kong gained 0.9%. The Nikkei, however, continued to fall away from 40,000, […]