Shrugging off a sluggish start, major US and Canadian indices rallied to new all-time highs Wednesday. Stocks attracted attention again on comments from President Trump indicating he is planning “massive” tax cuts for individuals and small businesses. The one thing that has become truly massive is the expectations for the US economy and corporate earnings in the coming months raising the risk of disappointment but for now the path of least resistance remains upward. The US Dollar started the day off strong rallying on stronger than expected headline US inflation, Empire Manufacturing and retail sales reports increased speculation that the Fed could be ready to raise interest rates as soon as its next meeting in March, which would put the central bank on course for four or more hikes this year. FOMC Chair Yellen continued her testimony to Congress while regional Fed Presidents Harker and Rosengren took an even more hawkish tone with both calling for at least the three party line with rate hikes this year and Rosengren suggesting perhaps even more may be needed. Into the afternoon, however, the greenback reversed course, enabling resource currencies like AUD, NZD and NOK which have been underperforming lately to rebound. The prices of gold and silver rebounded which could help precious metal miners today. Interestingly, the new all-time high in Canada’s S&P/TSX was driven by Financials, Health Care and Telecom and occurred despite a poor performance for materials, so the split between resources and financials in Australia may also be a significant force in today’s trading Australian markets could be particularly active around today’s Australian jobs report. The street is expecting steady job growth of about 10K. Traders should note, however, that the street was overly pessimistic about job growth in the US and Canada this month and both countries beat the street by a wide margin. With commodity prices improving and China having posted strong import demand last week, there is potential for a positive surprise today. AUD and NZD have been outperforming other currencies today so expectations may be starting to ratchet upward. In Europe tomorrow, ECB minutes are due but the political and financial fissures may continue to impact trading. There is a smaller round of US data focused more on housing and who knows what may come out of the administration next that could move the markets. Corporate News Cisco Systems $0.57 vs street $0.56 NetApp $0.82 vs street $0.74, guides next Q $0.79-$0.84 above street $0.77 Economic News Significant announcements released overnight include: US consumer prices 2.5% vs street 2.4% and previous 2.1% US core CPI 2.3% vs street 2.1% US real average hourly earnings 0.0% vs previous 0.8% US real avg hrly erngs over month (0.6%) vs previous 0.2% US retail sales 0.4% vs street 0.1% and previous 0.6% US retail ex auto 0.8% vs street 0.4% US Empire manufacturing 18.7 vs street 6.8 US industrial production (0.3%) vs street 0.0% vs previous 0.8% US manufacturing production 0.2% as expected US NAHB housing market index 65 vs street 67 US DOE crude oil inventories 9.5 mmbbls vs street 3.2 mmbbls and previous 13.8 US DOE Cushing oil inventory (0.7 mmbbls) vs street 0.4 mmbbls US DOE gasoline inventories 2.8 mbbbls vs street 0 mmbbls vs previous (0.8) US DOE distillate inventories (0.7 mmbls) vs street (1.0 mmbbls) Canada manufacturing sales 2.3% vs street 0.3% Canada existing home sales (1.3%) vs previous 2.2% Sweden interest rate (0.50%) no change as expected UK jobless claims change (42K) vs 0.5K vs previous (10K) UK 3M jobs change 37K vs street 22K vs previous (9K) UK average weekly earnings 2.6% vs street 2.8% UK unemployment rate 4.8% as expected Eurozone trade balance €28.1B vs street €26.0B Greece consumer prices 1.2% vs previous 0.0% Upcoming significant economic announcements include: (Note: 11:30 am in Sydney/Melbourne is currently 1:30 pm in Auckland, 4:30 pm in Vancouver, 7:30 pm in Toronto/Montréal, 12:30 am in London and 8:30 am in Singapore) 7:15 pm EST FOMC Dudley speaking 11:00 am AEDT NZ ANZ consumer confidence previous 128.7 11:30 am AEDT Australia employment change street 10.0K vs previous 13.5K 11:30 am AEDT Australia full-time jobs previous 9K 11:30 am AEDT Australia part-time jobs previous 4K 11:30 am AEDT Australia unemployment rate street 5.8% 6:30 am GMT France unemployment rate street 9.8% vs previous 10.0% 12:30 pm GMT ECB meeting minutes 8:30 am EST US jobless claims street 245K vs previous 234K 8:30 am EST US housing starts street 1,226K 8:30 am EST US building permits street 1,230K 8:30 am EST US Philadelphia Fed manufacturing street 18.0 vs previous 23.6