U.S. equity markets are mixed this morning. S&P 500 futures are down 1 point. Traders are waiting for news from the Federal Reserve to be released at 2:15 PM. Consensus is that the Fed Fund rate will fall 0.50% to 1.00%. Traders will be watching for guidance released with the 2:15 PM report.
Commodity prices are higher overnight. Crude oil gained $4.00 per barrel. Gold improved $24 per ounce. Natural gas, silver and copper prices also are higher. Commodity prices are responding to weakness in the U.S. Dollar. Strength in commodity prices is expected to buoy the TSX Composite Index at the opening.
September durable good orders released at 8:30 AM EDT were a pleasant surprise. Consensus was a decline of 0.5%. Actual was a gain of 0.8%.
Third quarter earnings by major U.S. companies continue to surprise on the upside. Procter & Gamble reported $1.03 versus $0.92 per share. Consensus was $0.98. Kraft reported $0.89 versus $0.76 per share. Consensus was $0.80. Both stocks are sharply higher in pre-opening trade.
Third quarter earnings by Canadian companies also continue to surprise on the upside. Nexen reported $1.68 versus $0.75 per share last year. Consensus was $1.54. BCE reported operating earnings at $0.60 versus $0.50 last year. Consensus was $0.56.
Not all reports were positive! Suncor reported third quarter earnings at $0.87 versus $0.63 per share last year. Consensus was $1.07 per share.
