US index futures are up 0.1%-0.5% with Dow Futures leading the way today as US stocks rebound from yesterday’s downswing that saw major indices decline 0.3%-0.8%.
European markets have turned down in the last few minutes flipping from green to red on the news that embattled UK Prime Minister Liz Truss has resigned after about six weeks on the job in the wake of a failed mini-budget and market turmoil. Currently, the FTSE is down 0.1% and the Dax is down 0.2%.
Treasury yields continue to climb. The US 2 and 3-year yields touched 4.60% earlier this morning, while the 10 and 30-year yields continue to put 4.0% in their rear-view mirror, climbing above 4.10%. Despite rising yields, the US Dollar has backed off a bit in what so far appears to be a normal trading correction. Against the greenback today, Gold is up 0.5%, the Euro is up 0.4% and the Canadian Dollar is up 0.3%. Commodities are also on the rebound today with WTI Crude Oil climbing 1.6%, Natural Gas rising 0.4% and Copper gaining 1.9%.
Tesla Motors is down 4.5% in premarket action following mixed results that saw EPS beat expectations ($1.05 vs street $0.99) but sales miss slightly ($21.4B vs street $21.9B). Other companies beating the street last night and this morning include American Airlines ($0.69 vs street $0.54), IBM ($1.81 vs street $1.79), and Danaher ($2.56 vs street $2.26). A couple of US regional banks and Union Pacific missed expectations slightly but overall, once again, results have been coming in better than expected. Later today, results are due from railroad CSX, plus miner Freeport, steelmaker Nucor, and social media provider Snap.
In economic news, US weekly jobless claims were better than expected (214K vs street 230K). The Philadelphia Fed Manufacturing Survey was even worse than feared (-8.7 vs street -5.0 and previous -9.9). US existing home sales are due at 10:00 am EDT. Tomorrow brings retail sales reports for Canada and the UK.
