US index futures are up 0.2% to 0.5% this morning, clawing back some of yesterday’s US index losses of 0.2% to 0.8%. European markets are slightly positive for the most part with a 1.0% gain for the CAC leading the charge. Commodity action is mixed with WTI Crude Oil down 0.4% and Copper up 0.9%. The US Dollar continues to retreat with Gold rising 1.0%, Bitcoin gaining 1.25%, and the Euro, Pound and Loonie all climbing 0.2%-0.4%.
US producer prices fell faster than expected (2.7% vs street 3.0% and previous 4.9%), but this appears to mainly be due to commodity prices as Core PPI (3.4% in line and previous 4.8%) did not drop as quickly. US weekly initial jobless claims (239K vs street 232K) were worse than expected and more troublingly, the last two month of reports were revised upward from the 190s to the 215-245 range. Bank of Canada Governor Macklem speaks this morning, and may give more color on yesterday’s stay the course decisions on monetary policy. Tomorrow brings US retail sales and industrial production reports.
US earnings season started this morning with results from Delta Air Lines, which is up 2.6% in premarket trading. Delta’s earnings fell short of expectations ($0.25 vs street $0.29) but investors have responded favorably to reports of strong bookings for the summer travel season and better than expected Q2 guidance ($2.00-$2.25 vs street $1.66). Earnings season starts to really ramp up tomorrow with results due from JPMorgan Chase, Citigroup, Wells Fargo, Blackrock, UnitedHealth, and others.
