Market Update

Treasuries open NY weaker after overnight two-way flows followed US post-FOMC rally. Tsy 1pm ET $28B 7Y auction. 10Y Tsy yld 2.3bp higher at 2.305%; 2/10Y curve steeper, 5/30Y flatter by 0.60 bps. Today, is the heaviest day for company earnings announcements and will add to a fairly decent data calendar that includes jobless claims and durable goods orders.

News headlines 

Stocks Mixed Amid Slew of Earnings; Dollar Steady: Markets Wrap (Bloomberg) European stocks struggled for traction on one of the busiest days for earnings of the year, after a series of positive corporate results spurred equities across Asia. The dollar steadied after slumping in the wake of the Federal Reserve’s latest decision.

Senate poised for healthcare showdown (Reuters) U.S. Senate Republicans begin their final push on Thursday to unravel Obamacare, seeking to wrap up their seven-year offensive against former Democratic President Barack Obama’s signature healthcare law that extended insurance coverage to millions.

Britain and Australia urge China to do more on North Korea threat (Reuters) Britain and Australia urged China on Thursday to do more to persuade North Korea to drop its nuclear and missile programs. Earlier this month North Korea, which has warned Australia could be the target of a strike, said it had conducted its first test of an intercontinental ballistic missile, which experts say could reach Alaska.

CMHC keeps red flag hoisted on housing as new problems emerge (Financial Post) Canada Mortgage and Housing Corp. continues to give the national housing market its worst possible rating saying there still is “strong evidence of problematic conditions” — an assessment first made three quarters ago.

Is there anywhere to hide in Toronto’s falling housing market? Just maybe (Financial Post) Is there anywhere to hide in Toronto’s falling housing market? Just maybe. A report from RE/MAX INTEGRA Ontario-Atlantic Region out Thursday looked at just detached homes in 65 neighbourhoods in the Greater Toronto Area over the first half of 2017, comparing the first quarter to the second quarter. The second quarter was impacted by Ontario’s 16-point housing plan.

Loblaw taking stock of ‘very compelling threat’ of Amazon: CEO (Financial Post) Loblaw’s business is being challenged by rising competition, the lingering effects of food deflation, minimum wage hikes and drug reform, but none of the threats seemed to loom as large in the grocery company’s second-quarter conference call as the potential impact of Amazon’s acquisition of Whole Foods on the industry.

Overnight markets 

Overview: US 10yr note futures are down -0.149% at 125-29, S&P 500 futures are up 0.21% at 2478.5, Crude oil futures are down -0.72% at $48.4, Gold futures are up 1% at $1268.1, DXY is up 0.03% at 93.697, CAD/USD is up 0.31% at 0.8032.

Cda Benchmarks Yield Tsy Benchmarks Yield
2 Year 1.295% 2 Year 1.359%
5 Year 1.587% 5 Year 1.849%
10 Year 1.969% 10 Year 2.305%
30 Year 2.366% 30 Year 2.919%

US Economic Data 

8:30 AM Initial Jobless Claims, Jul 22, est. 240k (prior 233k)
Continuing Claims, Jul 15, est. 1960k (prior 1977k)
Durable Goods Orders, Jun P, est. 3.9% (prior -0.8%)
Durables Ex Transportation, Jun P, est. 0.4% (prior 0.3%)
Cap Goods Orders Nondef Ex Air, Jun P, est. 0.3% (prior 0.2%)
Cap Goods Ship Nondef Ex Air, Jun P, est. 0.3% (prior 0.1%)
Advance Goods Trade Balance, Jun, est. -$65.5b (prior -$65.9b, revised -$66.3b)
Wholesale Inventories, m/m, Jun P, est. 0.3% (prior 0.4%)
Chicago Fed Nat Activity Index, Jun, est. 0.37 (prior -0.26)
9:45 AM Bloomberg Consumer Comfort Index, Jul 23, (prior 47.6)
11:00 AM Kansas City Fed Manufacturing Activity, Jul, est. 12 (prior 11)

Canadian Economic Data

7:45 AM CFIB Business Barometer, Jul, 60.7, (prior 60.9)

Disclosure and Disclaimer

The following sources of information have been, or may have been, used partially or in their entirety to compile the herein provided CTI Capital Securities Inc. (“CTI Capital”) ‘Morning Comments.’ CTI Capital believes these sources to be generally reliable, however, as said sources are varied and from third parties, CTI Capital cannot guarantee the accuracy or completeness of said information: Canadian Press (CP); Bloomberg News (BN); Wall Street Journal (WSJ); Stone & McCarthy Research Associates (SMRA); New York Times (NYT); Financial Times (FT); Market News International (MNI); Globe and Mail; Associated Press (AP); CNW Group (CNW); Reuters; Business News Network (BNN); Market Watch; and others.

Ivan Greenstein, Stephan Buu, David Leclair-Legault

Institutional Bond and Equity Desk
CTI Capital Valeurs Mobilières Inc.

Tel : (514)-861-0240
Fax: (514)-861-3230