U.S. equity index futures are higher this morning. S&P 500 futures are up 5 points in pre-opening trade. Index futures are responding partially to weakness in the U.S. Dollar. Commodities priced in U.S. Dollars including crude oil, gasoline, copper, gold, silver and platinum are trading higher.
Crude oil prices also were helped by news that the International Energy Agency has increased its estimate for global demand. Crude oil gained $0.80 per barrel. Energy stocks are expected to open significantly higher this morning. Tis the season for crude oil prices to move higher!il Futures (CL) Seasonal Chart
Index futures moved higher following release of February retail sales. Consensus was a gain of 0.2%. Actual was a gain of 0.3% despite two major snow storms during the month that curtailed sales. Excluding autos, retail sales gained 0.8%. Consensus was a gain of 0.6%.
Good news for Canada’s economy this morning! February employment rose 20,900. Of greater importance, the number of permanent positions rose 60,000.
The Canadian Dollar responded strongly on the employment report. The Canadian dollar rose .80 to 98.43 cents U.S. to reach a 20 month high.
Higher commodity prices set the stage for the TSX Composite Index to break above its January high at 12,070.20. Current intermediate upside potential on a break above resistance is to 13,250.
Potash Corp gained 8% after guiding first quarter estimates 50% higher than previous.
Agrium gained 5% after announcing withdrawal of its offer to purchase CF Industries. CF Industries fell 7%. Agrium is poised to break above resistance at $73.40 U.S.
Piper Jaffray initiated coverage of the Biotech sector with a series of Overweight stock recommendations including Rigel Pharmaceutical, Adrea Biosciences, Human Genome, Gilead, Alexion Pharmaceuticals and Affymax.
Deutsche Bank upgraded Southern Copper from Hold to Buy and raised its target price from $35 to $38. ‘Tis the season for copper stocks to move higher!
Society General initiated coverage of Goldman Sachs with a Buy recommendation.
Jefferies initiated coverage on Eli Lilly with a Buy recommendation.
Don Vialoux, chartered market technician, is the author of a free
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