US index futures are up 0.3% to 0.6% this morning but have been backsliding a bit as the morning has progressed. European action is mixed with the FTSE down 0.3% and the Dax up 0.6%. Commodities are mixed with Copper down 0.6% and US Crude Oil up 0.1%. Gold is down 0.3%, while Bitcoin is up 0.3%.
Investors have been responding positively to recent earnings reports. Salesforce.com is up 11.9% in premarket action as traders focused on strong sales driven by cloud and AI growth over a slight earnings miss. Canadian bank earnings week continues with Royal Bank ($3.07 vs street $3.01) and National Bank ($2.58 vs street $2.57) both beating expectations and raising their dividends. Tomorrow, TD Bank, CIBC* and Bank of Montreal (BMO) report results.
US ADP payrolls (146K vs street 150K, previous revised down to 184K from 233K) were quite disappointing and suggestive of a struggling economy. Service PMI reports have been rolling out overnight. The UK and Japan did well coming in above 50 in expansion territory and above expectations. Italy and Germany were disappointing. US ISM Service PMI (street 55.5) and US factory orders (street 0.2%) are due at 10:00 am EST. The Fed’s Beige Book regional economic report follows at 2:00 pm EST.
There is a lot going on outside of corporate and economic numbers. France’s parliament is holding a non-confidence vote on their Prime Minister, while legislators in South Korea are trying to impeach the country’s President who has been trying to impose martial law. Fed Chair Powell, four other Fed officials, and ECB President Lagarde are speaking today with traders looking for hints on the future of interest rate cuts. OPEC+ meets to set oil production levels tomorrow.
*Shares of Dollarama and CIBC are held in portfolios managed by SIA Wealth Management.
MARKET OUTLOOK NOVEMBER 2024 – Visit the link to view the recording of November’s Market Outlook Webinar with Colin Cieszynski, where he explores topics such as the impact of the US Election results on the Markets, updates on Portfolios and Performances, and examples of Peer comparison and risk-adjusted metrics.