US index futures are down 0.1%-0.3% this morning, less than yesterday’s gains of 0.75%-0.95% for the big 3 US indices and a gain of 2.50% for the Russel 2000. Considering that US indices have gone up 5-6 trading days straight now, propelling major indices to all-time record highs, a pause for some backing and filling is not unusual.
Overseas markets also appear to be taking a break so far today with the FTSE flat and the Dax down 0.4%. Asia Pacific markets rose overnight led by a 2.0% gain for Shanghai, while Hong Kong and Tokyo rose 0.4%-0.5%. In commodity action, energy is slipping a bit with WTI crude oil down 0.3% and natural gas down 2.9%. Metals are mixed with platinum up 1.5%, copper up 0.7%, gold up about 0.4% and silver flat.
It’s a quiet day for economic news, while on the political side investors appear to be focused more on initiatives for the future than refighting past battles with more attention on the new stimulus package working its way through congress and less attention on former President Trump’s second impeachment trial which starts today.
Earnings season is moving into its later stages in the US, with the majority of reports coming from medium-sized and smaller companies, and through its peak in Canada with several sector seniors reporting this week. In Canada today, Canopy Growth* reported stronger than expected sales ($152.5M vs street $148.9M) and suggested that its operating earnings may turn profitable in the second half of 2022. In the US today, duPont ($0.95 vs street $0.89) beat expectations. Later today, results are due from Cisco Systems, Lyft and Twitter.
*Shares of Canopy Growth are held in some portfolios managed by SIA Wealth Management
SIA Wealth True Tactical Webinar Tuesday February 9, 2:00 pm EST (1.5 CE Credits For Attending Advisors)
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SIA Wealth In The Media
Chief Market Strategist Colin Cieszynski recently appeared on BNN Bloomberg where he discussed True Tactical market rotation, the impact of US fiscal stimulus efforts on stocks and commodities, and why broad participation is important.