Stocks Slip Ahead of Powell Testimony

Yesterday’s equity market rally which saw major US indices gain 0.4% to 1.0% appears to have run out of steam this morning. US index futures are currently giving back some of yesterday’s gains, falling 0.2%-0.4%, while in Europe, the Dax and FTSE are essentially flat.

President Trump launching 25% tariffs on Steel and Aluminum may be part of the problem, except that currency markets are quiet so that was probably at least partially priced in already. Traders may be waiting to see what Fed Chair Powell has to say as his semi-annual testimony to Congress gets underway at 10:00 am EST. In particular, traders may look for comments on the economy, inflation, and if there are any potential changes to the Fed’s forecast of two 0.25% interest rate cuts for this year. 

Metals are under pressure this morning with Copper falling 3.1% and Gold sliding 0.7%. Energy markets are on the rise with Crude Oil up 1.5% and Natural Gas up 1.1%.

Today’s earnings reports find Shopify* ($0.44 vs street $0.43, down 3.3% premarket), Coca-Cola ($0.55 vs street $0.52, up 3.3% premarket) and Marriott ($2.45 vs street $2.39) all beating street expectations but to a mixed reaction from investors. Doordash reports after the close.

*Shares of Shopify are held in some portfolios managed by SIA Wealth Management.

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