Speculation over Merger & Acquisition activity in the US is driving the S&P500 higher this morning. Sabre, parent company of Travelocity, is reported to be on the auction block, while casino operator Harrah's Entertainment appears to be reviewing bids for the company. A slide in oil prices is also helping the US indexes. Canadian stocks are higher, led by gold and materials. The FOMC meets tomorrow and will likely keep interest rates steady. US inflation and industrial production data are scheduled to be released Friday. The TSX is up 19 pts. The Dow is up 27 pts.
The Loonie is slightly higher this morning to US$.8716, and is now up only 1.2% since the start of this year. Bonds sold off at the end of last week pushing yields higher across the curve. The 5-year Canada yield is 3.82% and the 10-year is 3.91%. The 30-year bond is back over the 4% threshold. Oil is off 22 cents to US.81/barrel. Gold is up .80 to US2.80/oz. The 5 Year Mortgage rate has been dropping slightly at various financial institutions.
