US index futures had a soft morning until inflation data came out and since then, stocks have been climbing and treasury yields have been falling. US consumer prices (2.6% in line vs previous 2.4%), rose slightly this month as expected.
Currently US index futures are trading flat to up 0.2% having previously been flat to down 0.2%. The US 10-year treasury note yield has slipped back under 4.40%.
Today the US Republican senators are picking a new leader which may set the tone for how easy or difficult it may be for the incoming Trump Administration to get legislation actually passed. Market action for the last week has suggested that Wall Street thinks President Trump will get his way on everything quickly with little opposition or hurdles.
Five more Fed officials are scheduled to speak today. Tomorrow brings US producer prices and a speech from Fed Chair Powell later in the day.
Two of Monday’s biggest moves have started to reverse. Bitcoin is down 1.4% and Ether is down 3.2% on profit taking in cryptocurrencies, which has helped Gold to bounce 0.3%. Natural Gas, meanwhile, is down for a second straight day, sliding 2.1%. US Crude Oil is up 0.3% while Copper is down 0.3%.
In earnings today, Loblaws* ($2.50 vs street $2.44) and Suncor Energy ($1.48 vs street $1.12) both beat expectations. Cisco Systems reports after the close this afternoon.
*Shares of Loblaws are held in some portfolios managed by SIA Wealth Management.