The last trading day of February finds US index futures up 0.2% to 0.3%, adding to yesterday’s US index gains of 0.2%-0.6%. European market action is mixed with the Dax up 0.4% and the FTSE down 0.4%. Energy and metals are also mixed with WTI Crude Oil up 1.9%, Copper up 0.6%, Gold down 0.5% and Natural Gas down 1.0%. The US 10-year treasury note yield is steady just above 3.90%.
Earnings reports dominate this morning’s business news. Canadian bank earnings week is now in full swing with mixed results. Bank of Montreal beat expectations ($3.22 vs street $3.16), boosted by a positive quarter for Capital Markets trading. Bank of Nova Scotia, on the other hand, fell short of estimates ($1.85 vs street $2.02) which management blamed on shrinking interest margins and soft international results. Royal Bank and National Bank report results tomorrow. In the US today. Target beat the street on earnings ($1.89 vs street $1.39) but missed on guidance ($7.75-$8.75 vs street $9.23), while Zoom Video ($1.22 vs street $0.81, up 5.6% premarket) also posted positive results. Canadian GDP growth slowed to flat over year in Q4, from 2.3% in Q3, which was worse than the 1.5% growth rate the street has expected, and Q3 growth was revised down from the 2.9% rate previously reported. US economic news is still on the way with house prices due at 9:00 am EST followed by the Chicago PMI report (street 45.0) at 9:45 am. Tonight and tomorrow morning bring Manufacturing PMI reports from around the world along with US Construction