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A roundup of what The Globe and Mail's market strategist Scott Barlow is reading this morning on the Web

The archaic make-up of the Dow Jones Industrial Average – which is weighted by stock price – means that it's likely to open lower this morning after a weak pre-market earnings report from Goldman Sachs. CNBC noted that Goldman's lower open would take 50 points from the Dow. Bank of America, however, reported profits ahead of expectations so Goldman's numbers should not be cause for investor concern.

"Goldman Whiffs in Wall Street Bond Rebound That Bolsters Rivals" – Bloomberg
"BofA's profit boosted by surge in trading, investment banking" – Bloomberg

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Crude prices are a bit lower this morning, but Citi analysts believe this is only a short pause before the commodity price hits $60 later in the year,

"'While U.S. shale output may come 'roaring back' amid higher crude prices, production curbs by OPEC and its allies should help offset that increase over the next six to nine months, Citi analysts including Ed Morse and Seth Kleinman wrote in an April 17 report … 'With a continuation of the OPEC and non-OPEC producer deal in the second half of 2017 and the expected associated inventory draw-down, we expect oil prices to move above $60 a barrel by the second half of the year,'"

"Citi Sees Oil Surging $10 as OPEC Combats Roaring U.S. Shale" – Bloomberg
"Oil hits 11-day low on expected surge in U.S. shale output" – Reuters


Credit Suisse analysts believe is set to surge higher despite the stock's already crazy-high valuation levels,

"Credit Suisse equity research analyst Stephen Ju is the latest to call for a big move in Amazon's share price. In a note circulated to clients on Monday, Ju reiterated his "Outperform" rating on Amazon and raised his price target to $1,050 from $900 … Amazon has been investing heavily in fulfillment and data centers, and Ju thinks some of those investments will start to pay off this quarter, improving margins for the retail behemoth. Those investments will also help balance out what profit Amazon loses by offering so much free shipping to customers. Credit Suisse notes Amazon's "push to invest should serve as positive demand indicators across its consumer and enterprise-facing businesses.""

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"CREDIT SUISSE: Here's why Amazon's stock is going to soar (AMZN)" – Business Insider


Mining stocks are taking a beating in London trading as metals prices continue their slide. Iron ore is lower by seven per cent in the past two days and 28 per cent from its 2017 peak.

"Iron Ore Ignores China Data, Index as Decline Accelerates: Chart" - Bloomberg
"@tbiesheuvel Ugly day for the miners… " – (chart) Twitter


The Ontario government appears to be testing the political waters regarding curbs to Toronto's rampant housing market,

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"While details are not available yet on how a non-resident speculation tax would be implemented, the province is 'looking at it intently,' according to a senior official who spoke with The Globe. The tax was one of a number of approaches that were studied over the past few months as the province prepared a much-touted housing affordability package aimed at cooling the red-hot housing market, partly by curbing demand."

"Ontario considers housing tax for non-resident speculators" – Report on Business


Tweet of the Day: "@tracyalloway Watch the data. For the first time since the elections, U.S. data is surprising to the downside. BofAML: " – (chart) Twitter

Diversion: "Fast Food for the Dude: Greasy, Fatty, Salty Is Red-Hot Formula" – Bloomberg

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About the Author
Market Strategist

Scott Barlow is The Globe's in-house market strategist. He is a 20-year veteran of Canadian investment banks, including Merrill Lynch Canada, CIBC Wood Gundy and Macquarie Private Wealth (MPW). He was a highly ranked mutual fund analyst for 10 years and then, most recently, the head of a financial adviser support team at MPW. More


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