AM 1150 Kelowna - Radio Rallies & Reversals

Q2 earnings seasons is at an end and so economic data will be the driving force behind markets for the next couple of months. Uninspiring economic news in the US has put a halt to yesterday's stock rally. While weekly initial jobless claims and continuing claims were lower than expected, they're still relatively high, and fail to shut the door on the possibility of a double-dip recession. Markets will be looking for direction from the Economic Symposium kicking off tomorrow in Jackson Hole with opening comments from FED Chairman Ben Bernanke, and the US GDP report on Friday.

In Canada, bank earnings are still coming out. Early this week we had a miss from BMO thanks to a short-fall in trading revenues; however, trading revenues helped CIBC to beat expectations. Today offers another split picture with RBC missing estimates while National Bank beat expectations.

Bond yields continue to fall with the 10 year Canada at 2.8% and 10 year Treasuries at 2.51%. The bond market is certainly worried about economic hardships ahead.

GB