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Resource Stocks In Focus As Earnings Reports, Fed Reaction Drive Trading

Published 2017-07-27, 08:56 a/m
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Global markets have remained active overnight. Commodity prices and gold have continued to climb, boosting resource stocks. USD was knocked back down as traders viewed the Fed statement as less hawkish than expected. Stocks have been mixed with the U.S. probing all-time highs and Europe in retreat.

U.S. index futures are in positive territory with Nasdaq Inc (NASDAQ:NDAQ) up 0.5% outpacing Dow and SPX, which are both up 0.1% to the upside.‎ Facebook (NASDAQ:FB) is up about 3% in overnight trading following a very strong earnings report. Amazon.com (NASDAQ:AMZN) reports tonight.

Despite being dragged lower by falling health-care stocks, led by Astrazeneca (NYSE:AZN) which is down 15%, the FTSE is down only marginally, while the DAX is down 0.5%. ‎

Crude oil holding on to the big gains of recent days following yesterday's big 7.0 mbbl DOE drawdown has been providing support to energy stocks. The oil patch may continue to attract attention with a number of majors set to report earnings today and tomorrow. Comments related to exploration and development spending may attract particular attention. Suncor Energy (TO:SU) raised its budget, while ConocoPhillips (NYSE:COP) has cut back spending.

In currency action, USD has been mixed, falling further against some currencies, particularly gold and GBP and rebounding against EUR, CAD and others. In addition to potentially reacting to the gold price rally action, Canadian gold stocks may also attract attention after Barrick (TO:ABX), Goldcorp (TO:G) and Agnico Eagle (TO:AEM) all posted spectacular results overnight.

A number of other companies have posted strong results, including Potash Corp. (TO:ICP), Procter & Gamble (NYSE:PG) and UPS (NYSE:UPS), while Methanex (TO:MX), Whirlpool (NYSE:WHR) (NYSE:WHR) and Cameco (TO:CCO) came in below expectations.

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