This morning we are seeing some mixed markets with Asia up large overnight (2%) on the rally in Europe and the US.
Europe is higher at midday by about a half a point regardless of Germany’s continued slowing economy. The players are convinced that the ECB will come to the table with more stimulus (interest rate drop) holding markets there higher by about three quarters of a point.
In the US Durable Goods for March were off 5.7% vs. estimates of 3.0% indicating that big ticket items were in decline for the month. After a 4.3% increase in February the numbers do show the continued volatility in the sector. US futures are trending higher this morning up slightly over yesterday’s close.
Apple released their earnings yesterday and beat the street estimates on both the top and bottom line. However the guidance for the rest of the year was quite cautious. The company did report a $50bn share buyback and a dividend increase of 15% bringing the yield at the current price to just over 3%.
In other earnings news, mandate companies Metro and CP Rail both released with Metro meeting expectations and CP beating on both the top and bottom line. CP’s operating ratio also improved from the last quarter which is a great measurement of whether managements plan is having success.
Gold is trading higher this morning up 20.00 to 1428.00, oil is higher up 28 cents to 89.46 and the Loonie is flat at 97.44.
Kenneth A. Dick, BA, CIM, CFP, FCSI