Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.

Dow holds 20,000 as stocks consolidate gains

It's looking to be another big day for earnings reports with Caterpillar headlining the morning round while Google, Microsoft and Intel all report after the close.  In Canada, Methanex posted a huge earnings beat overnight while this morning Potash has disappointed on both earnings and guidance. 

In the US, Speaker of the House Paul Ryan outlined the Republicans agenda for Congress with plans to focus on repealing and replacing parts of Obamacare first, then tax reform by August. Ryan would reportedly prefer to address immigration in the fall but President Trump has been trying to get that addressed sooner. The timing could be important for markets because the longer it takes Congress to approve infrastructure spending the longer it will take to reach corporate earnings. With infrastructure stocks soaring right now, there is a growing risk that some stocks may be getting caught up in the hype and ahead of their short to medium term prospects.   

Brexit remains in focus as well with legislation published today, a white paper due shortly and UK PM May scheduled to meet President Trump tomorrow. UK GDP exceeded expectations with US GDP due Friday.

Currency trading has seen the US Dollar rebound a bit causing other currencies to give back some of their gains. After defying gravity for a day, JPY has been knocked back more than others with defensive plays still under pressure and gold trading below $1,200 again. Commodities have been relatively steady overnight with Australia closed for a holiday. Natural Gas, a more North American commodity has been most active rallying 2.5% ahead of today's storage report. 

Corporate News

Caterpillar    $0.83 vs street $0.66, sales $9.5B below street $9.9B guides 2017 EPS $2.90 below street $3.06, guides sales $36.0-$39.0B around street $37.5B

Citrix Systems        $1.61 vs street $1.49

Mattel        $0.52 vs street $0.71

Whirlpool        $4.33 vs street $4.44

Potash            $0.07 vs street $0.09, guides 2017 EPS to $0.35-$0.55 below street $0.62

Methanex        $0.46 vs street $0.21, sales $585M vs street $535M

Rogers Comm        $0.74 vs street $0.781

Economic News

UK Q4 GDP            street 2.1%

NZ consumer prices        street 1.2% vs previous 0.4%
China industrial profits        previous 14.5%
Singapore industrial production    street 10.4%

Upcoming significant economic announcements include:

8:30 am EST        US advance goods trade bal    street ($65.3B)
8:30 am EST        US jobless claims        street 247K

9:45 am EST        US flash service PMI        street 54.4
10:00 am EST        US new home sales        street 588K
10:00 am EST        US leading index        street 0.5% vs previous 0.0%
10:30 am EST        US natural gas             street (120BCF)

Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.