Don’s Notebook May 18, 2018
There are no scheduled government reports expected today so this afternoon’s Baker Hughes Rig Count is the most significant market driver. Observers will be looking for cues on the possibility of recent run-up in activity toward 2015 highs continuing when the data are released at 1:00 p.m. ET.
- With oil now over $70, the Baker-Hughes Rig Count, which is generally considered to be an accurate, could climb.
President Trump’s chief NAFTA negotiator said yesterday that Mexico, the U.S. and Canada are “nowhere near close to a deal” to update the region’s free-trade pact.
- Primary issues include: the Canadian dairy market, regional car construction, and Trump’s demands to shrink the U.S. trade deficit.
- Negotiations will continue in Washington on Monday.
Overnight Markets were mixed:
- The MSCI Asia Pacific Index rose 0.2 percent
- Japan’s Topix index closed 0.4 percent higher with gains led by energy and insurance companies.
- In Europe, the Stoxx 600 Index was 0.1 percent lower at 5:50 a.m. ET,
- Italian stocks the stand-out underperformer as the benchmark gauge in Milan dropped more than 1 percent.
- S&P 500 futures pointed to a higher open.
- The 10-year Treasury yield was at 3.100 percent and gold was lower.
Notable Earnings Conference Calls Today: Apollo Investment, AstraZeneca, Campbell Soup and Deere.
Fed Speakers today:
- Dallas Fed President Robert Kaplan and Fed Governor Lael Brainard are both scheduled to speak at 9:15 ET in different locations.
- In a speech earlier this morning, Federal Reserve Bank of Cleveland President Loretta Mester warned against dismantling core banking reforms.
If you are Royal Watcher there is the matter of Prince Harry’s wedding to actress Megan Markle tomorrow morning in London.
