BEFORE THE BELL: Analysts warning investor confidence in US corporate earnings likely to be short-lived
US corporate earnings are keeping markets boosted at the midpoint for the trading week.
Experts say investors are choosing to shrug off trade war concerns for now with a focus on these positive earnings reports. But, analysts say it’s a dangerous game as the reality of the trade war between China and the US will come rolling back soon.
Meanwhile, traders will be looking to Bay Street after the TSX plummeted 133 points yesterday on tension between Canada and Saudi Arabia. The Middle Eastern country is systematically cutting trade deals with Ottawa over a human rights spat. The Loonie isn’t safe from the troubles either as it slides to 76.36 cents US this morning.
Meanwhile, the price of US crude is dipping to 68.73 a barrel as investors chew on inventory reports. A recent report showed US inventory of crude is down, but experts say the global supply likely will sustain demand for now.
Disney shares are down slightly as the company came in just below expectations in its second quarter. However, Disney’s film studio blazed ahead on profits from movies like Infinity War and The Incredibles 2.