Preparations continue across world markets for President Trump’s inauguration on Monday, which also is Martin Luther King Day so US markets will be closed.
US index futures are up 0.50% to 0.75% heading into the long weekend, unwinding yesterday’s US index losses of 0.1% to 0.9%. Over in Europe, the Dax is up 1.0% and the FTSE is up 1.4%.
The US 10-year treasury note yield has slipped back toward 4.55%. This has not stopped the US Dollar from continuing to climb today, gaining 0.5% against the Pound, 0.25% against the Loonie, 0.15% against the Euro, 0.5% against Gold, and 2.0% against Silver. The drop in the Pound appears to be related to weaker than expected UK retail sales.
Overnight, China announced better than expected GDP (5.4% vs street 5.0%), retail sales (3.7% vs street 3.5%), and industrial production (6.2% vs street 5.4%). This good news has not helped commodities, however, as Crude Oil is down 0.4% and Copper is down 1.3%). Natural Gas is down 3.8% even with colder weather on the way.
It’s a quieter day for earnings with results out from a few regional banks. Earnings season resumes next week with results from big manufacturers, technology and consumer products companies including GE Aerospace, 3M*, Netflix*, Texas Instruments, Johnson & Johnson and Procter & Gamble.
*Shares of 3M and Netflix are held in portfolios managed by SIA Wealth Management.