U.S. equity index futures are slightly higher this morning. S&P 500 futures were up 1 point in pre-opening trade. Slight weakness in the U.S. Dollar contributed to strength. Commodities priced in U.S. Dollars including copper and crude oil moved higher.
Investors are waiting for Federal Reserve Chairman Ben Bernanke’s semi-annual testimony on monetary policy in front of Congressional Committees. He presents to the House of Representative’s Financial Services Committee this morning at 10:00 AM EST. The focus is on timing for an exit strategy for monetary stimulus.
Fourth quarter earnings reports released overnight were mixed. Thomson Reuters and Toll Brothers reported better than expected fourth quarter earnings. Finning International and First Service reported less than consensus fourth quarter earnings.
Finning International also reported a surge in orders for tractors used by the mining industry. The Metals and Mining Sector currently is in a period of seasonal strength with a sweet spot from early March to mid May.
Goldman Sachs is taking a more positive stance on selected U.S. energy stocks. Goldman upgraded EOG Resources from Neutral to Buy with a target price of $119 and raised its rating on Exco Resources from Buy to Conviction Buy.
Don Vialoux, chartered market technician, is the author of a free
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