US investors are picking up where they left off on Friday, pushing stocks upward. US index futures are up 0.4%-0.6% so far this morning, building on Friday’s gains. Overseas trading has been subdued, particularly in Europe where the Dax, CAC and FTSE are all between -0.1% and +0.1%.
The US Dollar is bouncing back today, unwinding much of yesterday’s selloff, with gains of 0.9% against the Canadian Dollar, 0.5% against the Pound, 0.4% against the Euro and 0.3% against Gold. New threats of 25% US tariffs against Canada and Mexico potentially starting as soon as February 1 appear to be weighing on the Loonie today.
Earnings season has resumed this morning with positive results from manufacturer 3M* ($1.68 vs street $1.66, up 4.3% premarket), and homebuilder DR Horton ($2.61 vs street $2.35, up 3.6% premarket). Netflix* reports results after the close today.
President Trump declaring a national energy emergency and making moves to accelerate drilling in the US appears to be having the desired effect on the price of crude oil today, which is down 2.5%. Natural Gas is down 3.2% as traders look past the current cold spell. Copper is down 1.4%.
Headline Canadian inflation beat expectations slightly (1.8% vs street 1.9%), but core CPI showed an uptick (1.8% vs previous 1.6%).
*Shares of 3M and Netflix are held in portfolios managed by SIA Wealth Management.