Capital markets are experiencing some resistance after an impressive rally that pushed the Dow, S&P500 and TSX to this years high-water mark, coincident with a pause in the relentless downward pressure we’ve seen on the US dollar over the last four months. Gold, base metal and energy shares are taking a step back as the greenback rallies. A government report showed consumer confidence in the US slipped this month, but a separate report showed home prices for the twenty largest US cities climbed in May for the first month-over-month increase in three years. The TSX is down 213 pts. The Dow is down 84 pts.

The Canadian dollar is off three-quarters of a cent this morning to US$.9175. Bond yields have also retreated a touch to 2.66% for the 5-year Canada and 3.52% for the ten. Oil is down $1.71 to US$66.64/barrel. Gold has slumped $17.70 to US$935.80/oz.

A host of positive profit reports have sent the Dow and S&P500 to nine-month highs, while the TSX is within spitting distance of its high set in early June. American companies such as EBay, Ford and AT&T posted better than expected results this morning, while EnCana beat estimates here in Canada. Results from Potash Corp. were lacklustre, as the company lowered its full-year forecast. Home re-sales in the US also increased more than forecast for the third consecutive month, while the inventory of unsold homes declined. The TSX is up 226 pts. The Dow is up 173 pts.

 The Canadian dollar climbed along with commodity prices as upbeat economic and profit reports fuel optimism that business conditions are improving. The Loonie is up a full penny to US$.9198 this morning. Bond yields backed up to 2.60% for the 5-year Canada and 3.51% for the ten. Gold is up $3.50 to US$956.80/oz. Oil is up $1.40 to US$66.80/barrel.