News headlines 

The Race for a Major Tax Overhaul Is On. Here’s One Big Obstacle (Bloomberg) The House narrowly adopted a budget resolution, but a lingering obstacle to overhauling the U.S. tax code re-emerged: whether or how to limit a federal tax break that benefits high-tax states including New York and New Jersey.

Amazon Tops Sales Estimates on Subscribers, Whole Foods (Bloomberg) Amazon.com Inc. showed investors it can run grocery stores, churn out gadgets, expand its cloud-computing business and invest in new markets, all while selling more products online and managing expenses. The company reported third-quarter sales and profit that topped analysts’ estimates. The results reassured investors that the company can integrate its biggest-ever acquisition — Whole Foods Market Inc. — without disrupting its dominating e-commerce performance. Shares rose as much as 8.5 percent in extended trading. The stock closed at $972.43 in New York and has gained 30 percent this year.

Where the Hurricane Impact May Show Up in U.S. GDP Report (Bloomberg)  It will probably take a lot more than hurricanes to blow the U.S. economy off its path of steady growth. That’s the expected takeaway from third-quarter gross domestic product figures due Friday. While Harvey and Irma inflicted extensive damage on parts of Texas and Florida, economists now reckon the storms’ drag was smaller than they’d anticipated. Their median estimate calls for a 2.6 percent annualized rate of growth following a 3.1 percent gain, which would be the best two-quarter performance since early 2015.

Stocks Advance as Euro Falls; Dollar Extends Gain: Markets Wrap (Bloomberg) Stocks in Europe advanced for a second day as the euro headed for its worst week since March. The dollar extended its rally after the U.S. House passed a resolution that brings tax cuts a step closer and speculation mounted a hawkish candidate may become the next Federal Reserve chair.

Total’s Profit Jumps as Big Oil Shows Rebound From Deep Slump (Bloomberg) Total SA posted the highest earnings from pumping oil and gas in more than two years, illustrating the improving fortunes of an industry that’s endured the deepest downturn in a generation.

Janet Yellen out of Fed chair race, one source tells Politico (Economic Times)  President Donald Trump’s search for the next chair of the U.S. Federal Reserve has come down to Fed Governor Jerome Powell and Stanford University economist John Taylor, Politico on Thursday cited one source as saying, while another counseled caution.

Saputo reaches deal to acquire Australian dairy firm for $1.29 billion (BNN) Montreal-based dairy giant Saputo Inc. announced Thursday it has reached a $1.29-billion agreement to acquire Australia’s Murray Goulburn Co-Operative Co. Limited.

Wall Street loves electric cars, America loves trucks (Reuters) Wall Street may love the shares of Silicon Valley electric carmaker Tesla Inc, but Americans love big, fuel-thirsty trucks like Ford Motor Co’s bestselling F-Series pickups and are paying ever higher prices to buy them.

Overnight markets 

Overview: US 10yr note futures are down -0.025% at 124-11, S&P 500 futures are up 0.23% at 2567.5, Crude oil futures are down -0.23% at $52.52, Gold futures are down -0.2% at $1267, DXY is up 0.41% at 94.996, CAD/USD is up 0.28% at 0.7762. 

Cda Benchmarks Yield Tsy Benchmarks Yield
2 Year 1.447% 2 Year 1.623%
5 Year 1.687% 5 Year 2.076%
10 Year 2.019% 10 Year 2.456%
30 Year 2.37% 30 Year 2.955%

US Economic Data

8:30 AM GDP Annualized QoQ, 3Q 3.0% est 2.6% (3.1% prior)
Personal Consumption, 3Q 2.4% est 2.1% (3.3% prior)
GDP Price Index, 3Q 2.2% est 1.7% (1.0% prior)
Core PCE QoQ, 3Q  1.3%est 1.3% (0.9% prior)
10 :00 AM U. Of Mich. Sentiment, Oct est 100.7 (101.1 prior)
U. Of Mich. Current Conditions, Oct (116.4 prior)
U. Of Mich. Expectations, Oct (91.3 prior)
U. Of Mich. 1 Yr Inflation, Oct (2.3% prior)
U. Of Mich. 5-10 Yr Inflation, Oct (2.4% prior)

Canadian Economic Data

There is no Canadian economic data for today.


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, Hugues Savard

Institutional Bond and Equity Desk
CTI Capital Valeurs Mobilières Inc.

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