US markets are closed for Martin Luther King Day today and being January 20th, it’s also Inauguration Day in the USA.
Coming off a strong finish to last week, which saw major US indices close up 0.8% to 1.5%, US index futures are quiet this morning trading flat to down 0.1%. European trading is also quiet this morning. The 10-year US treasury note yield is steady near 4.60%. Gold is steady, Bitcoin is up 1.1%, the Euro is up 0.4% and the Pound is up 0.2%.
Once President Trump is sworn into office he is widely expected to sign 50-100 executive orders, depending on the source. The initial focus for markets may be on Canada and Mexico who Trump has threatened with a round of new tariffs, both in terms of the amount and whether they are broad based or targeting specific industries. If new tariffs are launched, it also remains to be seen if Canada would launch retaliatory tariffs. So far today, S&P/TSX futures are slightly positive and the Loonie is up 0.15%. There also are key economic reports due in Canada this week, including consumer prices tomorrow and retail sales on Friday.
A deep freeze has settled across eastern North America as widely expected. Now that it is here in “buy on rumor, sell on news” fashion, the price of Natural Gas is down 2.6% this morning. Crude Oil is up 0.4% and Copper is down 0.2%.
Earnings season resumes this week with results from big manufacturers, technology and consumer products companies including GE Aerospace, 3M*, Netflix*, Texas Instruments, Johnson & Johnson and Procter & Gamble.
It is a lighter week for economic news in the US. The main event is flash PMI reports which are due on Friday.
*Shares of 3M and Netflix are held in portfolios managed by SIA Wealth Management.