The US stock market rebound which started last week continues to show signs of slowing. Coming off of a positive Monday, this morning US index futures are down 0.3% to 0.4%. In Europe today, the Dax is up 0.5% and the FTSE is up 0.7%.
Commodity action finds Copper down 1.4% and Crude Oil down 1.0% ahead of tonight’s China GDP, retail sales and industrial production reports, and tomorrow’s US retail sales report. Gold and Silver are both up about 0.4%.
The US 10-year treasury note yield is holding steady near 4.40% as traders await tomorrow’s speech by Fed Chair Powell where they may be looking to hints as to whether Powell is prepared to mitigate the risks of the current trade war with interest rate cuts any time soon or not. The Empire State Manufacturing Index was improved from last month and is not as bad as feared (-8.1 vs street -14.5 and previous -20.0).
The Bank of Canada is meeting tomorrow and is expected to keep its overnight rate unchanged. This would not be a surprise in the middle of a federal election campaign and following a series of rate cuts that started last summer. Canada consumer prices indicated inflation remains soft (2.3% vs street 2.6%).
Earnings continue to roll out this morning with Bank of America ($0.90 vs street $0.82, up 1.3% premarket) and Johnson & Johnson ($2.77 vs street $2.58, down 1.5% premarket) beating expectations. Citigroup and United Airlines report later today.