U.S. equity index futures are mixed this morning. S&P 500 futures up 1 point in pre-opening trade. Index futures recovered from overnight losses following release of the January U.S. employment report. Consensus for Non-farm payrolls was unchanged from December. Actual was a decline of 20,000. Consensus for the unemployment rate was unchanged from December at 10.0%. Actual was a drop to 9.7%, the lowest level in nine months. Consensus for Hourly Earnings was a gain of 0.2%. Actual was a gain of 0.3%.
Additional strength in the U.S. Dollar Index dampened enthusiasm for U.S. equity index futures.
Canada announced an encouraging January employment report. Consensus for employment was a gain of 15,000. Actual was a gain of 43,000. The Canadian Dollar gained 0.34 to 93.55 following release of the news.
Several companies reported better than expected fourth quarter earnings. Consensus for Brookfield Asset Management was $0.33 per share. Actual was $0.35. Consensus for Weyerhaueser was $0.41 per share. Actual was $0.52 per share. Weyerhaueser is benefiting from a surge in lumber prices. Lumber prices are moving higher in anticipation of strong growth in infrastructure spending this spring.
Sunoco, a major U.S. oil refiner continues to struggle. Consensus for fourth quarter earnings was a loss of $0.25 per share. Actual was a loss of $0.27 per share. Refiners such as Sunoco cannot continue to produce gasoline for sale at a loss. The stage is set for a significant recovery in gasoline prices this spring.
Don Vialoux, chartered market technician, is the author of a free
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