New High For Gold; Stocks Slide as Focus Turns to Earnings Reports

US index futures have resumed their retreat this morning, with the three main contracts trading down 0.9% to 1.4%. Overseas trading action has been mixed with the Dax down 0.5%, the CAC down 0.6%, the FTSE flat, the Nikkei down 1.3%, and the Hang Seng up 1.6%.

Earnings season ramps up this week and recent earnings-related action suggests guidance could potentially drive significant swings. United Health finished with a 22.4% loss on Thursday after it cut guidance. This morning, Netflix* is up 2.2% after beating the street on revenues, earnings, and guidance, after markets closed for the week. Headliners this week include: Tesla and GE Aerospace on Tuesday; Boeing and IBM* on Wednesday; Alphabet, Merck, PepsiCo, and Union Pacific on Thursday; and wrapping up with AbbVie on Friday. In Canada, Rogers Communications reports on Wednesday.  

The Peoples Bank of China held its benchmark interest rate at 3.1% this morning. The US 10-year treasury note yield remains steady near 4.35%.

Recent musings by President Trump about trying to fire Fed Chair Powell for not cutting interest rates appears to be having a larger impact on confidence in the US Dollar, which is selling off today. The price of Gold has soared 2.5% to a new all-time high above $3,400/oz, while Silver is up 1.7%. Meanwhile the Euro is up 1.2%, the Pound and Aussie are up 0.7%, the Loonie is up 0.3%, and Bitcoin is up 3.2%. Commodity action is mixed with Copper up 0.8% but Crude Oil down 2.5%.

*Shares of Netflix and IBM are held in portfolios managed by SIA Wealth Management.

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