It’s looking like Donald Trump Jr. could keep dominating the headlines today, at least until Janet Yellen starts making hawkish sounds on Capitol Hill.
Why might Junior matter to markets?
“Beyond the story-telling this leads to, there is tangible market impact in the form of further difficulty in passing policies that could revitalize growth,” says DailyFX’s John Kicklighter.
When it gets to be Yellen’s moment later this morning, watch for lawmakers to press her on when the Fed will stop having an outsized role in the economy.
She won’t be the only central banker making waves, and that brings us to our call of the day, which comes from Canaccord Genuity strategist Martin Roberge.
As the Bank of Canada’s Stephen Poloz and his colleagues look set to raise interest rates up there today and join the “normal or bust” movement, Roberge says it’s time to start betting on commodities stocks.
“While Commodity Rally 1.0 in 2016 was driven by US$ depreciation, we believe Commodity Rally 2.0 will be more fundamentally ‘demand’ driven,” the Canada-based strategist writes in a recent note.
Investors should go overweight on energy stocks XLE, +0.63% , the materials sector XLB, +0.95% and industrials XLI, +0.54% , Roberge says. His table below shows those overweight calls and his subsector picks like gold miners GDX, +1.39% and railroads, along with corresponding U.S. and Canadian ETFs.
“Speaking of the Canadian stock market, we believe only the bombed-out resource sectors are buyable here,” he writes.
And he’s not alone in sounding upbeat on these areas. Fertilizer giants like Potash Corp. of Saskatchewan POT, +0.06% , base-metal miners and gold producers have outperformed in Bank of Canada tightening cycles over the past dozen years, a Bloomberg report notes.
Key market gauges
Futures for the Dow YMU7, +0.47% , S&P 500 ESU7, +0.62% and Nasdaq-100 NQU7, +0.84% are edging higher. That’s after the Dow DJIA, +0.48% and S&P SPX, +0.65% closed roughly flat yesterday, as the stock market pared losses that came after Trump Jr.’s release of key emails. But the Nasdaq Composite COMP, +0.89% inched up.
See the Market Snapshot column for the latest action.
“In retrospect, I probably would have done things a little differently.” — Donald Trump Jr. told Fox News host Sean Hannity late Tuesday that he may have not handled a June 2016 meeting with a Russian attorney so well.
The president’s firstborn added that the meet-up, which had looked like it might yield damaging information on Hillary Clinton, was “literally just a wasted 20 minutes.”
One review of the Hannity appearance:
My son Donald did a good job last night. He was open, transparent and innocent. This is the greatest Witch Hunt in political history. Sad!
— Donald J. Trump (@realDonaldTrump) July 12, 2017
Here’s a typical StockTwits comment in the wake of those plunges: “$SNAP oh look! Still trending hahaha. This company is a joke and so is $APRN.”
It’s been a bumpy stretch for bitcoin rival ethereum, which has lost $17.5 billion in market value since mid-June. Meanwhile, a former Credit Suisse trader has scored $66 million from investors for a cryptocurrency push, Bloomberg reports.
Fed chief Yellen is slated to deliver her semiannual testimony to Congress today and tomorrow. Text of that testimony is out and initially appears about as expected, and today’s appearance starts at 10 a.m. Eastern.
Investors are also due to get the Bank of Canada’s rate decision at 10 a.m. Eastern, then take in the Fed’s Beige Book at 2 p.m. and hear from K.C. Fed President Esther George at 2:15 p.m.
Cano’s 10th-inning homer gave the AL its 5th-straight All-Star Game win.
Questions are raised about a claim that Amelia Earhart died in Japan.
Quentin Tarantino is planning a movie on the Manson murders.
MSNBC’s Joe Scarborough says he’s no longer a Republican.
Monkeys are taking over a Florida state park.
Landmark French concept store Colette is closing after 20 years.
700 New York-area airport workers are going on strike.
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