U.S. equity index futures are higher this morning. S&P 500 futures are up 10 points in pre-opening trade. Weakness in the U.S. Dollar contributed to strength. Commodities priced in U.S. Dollars including gold, silver, copper and crude oil traded higher.
Crude oil was notably higher, up $0.92 per barrel. Another major winter storm has entered into the U.S. Mid-west and North East states.
China’s economy continues to boom. January auto sales in China rose 116% to 1.3 million units from the same period in 2009. That’s good news for commodities such as platinum that are used in autos.
Several companies reported higher than expected fourth quarter earnings overnight including Teck Resources, Molson Coors, Agrium and Electronic Arts. Teck and Agrium moved higher in overnight trading, but Electronic Arts moved lower after offering negative guidance. Several U.S. investment dealers downgraded the stock this morning.
Coca Cola added 1% after reporting fourth quarter earnings in line with expectations. Revenues exceeded expectations.
Caterpillar added 4% after Morgan Stanley raised its rating on the stock from Underperform to Outperform. Target price was raised from $51 to $70. Infrastructure spending this spring is expected to increase demand for Caterpillar’s products.
Monsanto added 2% after Bank of America/Merrill upgraded the stock from Neutral to Buy. Target was raised from $94 to $96. Demand for agricultural chemicals has started to recover.
McDonalds added 1% after announcing that global, same store sales rose 2.6% in January.
Canadian National Railway added 1% after Stifel Nicolaus upgraded the stock from Hold to Buy. Target price is $60.
Don Vialoux, chartered market technician, is the author of a free
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