K96.3 FM Kelowna's Classic Rock - Radio Ralies & Reverals for Monday, April 26

North American markets were up for the week last while international markets were mixed. The story continues to be corporate earnings, and so far for Q1, over 80% of companies which have already announced earnings have surpassed analyst estimates. What's interesting is that while earnings continue to rise, stock prices in aggregate are lagging, and as a result P/E multiples are falling. This suggests that much of the good news was expected and already baked into the cake.

Earnings will continue to drive markets this week starting with bell weathers Caterpillar in the US and Canadian National Railway in Canada. Economic news to look forward to this week are the Case-Shiller home price index tomorrow, the FED rate decision on Wednesday, and Canadian GDP on Friday. Seasonally, May is the time to 'go away', but as I mentioned last week, there's a lot of cash on the sidelines which has missed out on this rally and could continue to provide support.

That's it for me. Dave Allard is back on tomorrow.

GB