Gold Edges Higher As Dollar Weakens

Gold prices rose on Tuesday as strong U.S. economic data released overnight eased economic recovery concerns and helped soften demand for the dollar as a safe-haven asset. A drop in U.S. bond yields also boosted demand for the precious metal.

Spot gold edged up 0.2 percent to $1,731.69 per ounce, while U.S. gold futures were up 0.2 percent at $1,732.50 per ounce.

The dollar hit an almost two-week low versus a basket of rival currencies and benchmark 10-year note yields ease to 1.705 percent amid dovish central bank comments, with Cleveland Federal Reserve Bank President Loretta Mester telling CNBC that near-term tapering of bond purchases is unlikely.

Weaker Treasury yields translate into a lower opportunity cost for holding bullion, which pays no return.

The spring 2021 meetings of the International Monetary Fund (IMF) and World Bank are taking place this week, with discussion likely to revolve around how to steer fiscal and monetary policies in the period ahead.

U.S. Treasury Secretary Janet Yellen is among the participants of a climate discussion today while Federal Reserve Chairman Jerome Powell takes part in a panel about the global economy on Thursday.

Yellen made the case for a global minimum corporate tax rate on Monday as President Joe Biden seeks to raise levies on U.S. companies in a move that may prompt them to seek locations with lower taxes.

The Fed publishes minutes from its March meeting on Wednesday, with investors looking for insight as to what it will take for policymakers to begin tightening sooner than expected.

U.S. Factory Orders Pull Back More Than Expected In February

After reporting sharp increases in new orders for U.S. manufactured goods over the past several months, the Commerce Department released a report on Monday showing a pullback in factory orders in the month of February.

The Commerce Department said factory orders slid by 0.8 percent in February after spiking by an upwardly revised 2.7 percent in January.

Economists had expected factory orders to decrease by 0.5 percent compared to the 2.6 percent jump originally reported for the previous month.

The bigger than expected drop in factory orders came as durable goods orders tumbled by 1.2 percent, led by a 1.8 percent slump in orders for transportation equipment. Non-durable goods orders also fell by 0.4 percent.

The report also showed shipments of manufactured goods plunged by 2.0 percent in February after jumping by 1.8 percent in January.

Meanwhile, inventories of manufactured goods increased by 0.8 percent in February following a 0.2 percent uptick in January.

With inventories rising and shipments falling, the inventories-to-shipments ratio climbed to 1.40 in February from 1.36 in January.

Paychex Inc. Q3 adjusted earnings Beat Estimates

Paychex Inc. (PAYX) announced a profit for third quarter that declined from last year.

The company’s earnings totaled $350.5 million, or $0.97 per share. This compares with $354.5 million, or $0.98 per share, in last year’s third quarter.

Excluding items, Paychex Inc. reported adjusted earnings of $348.8 million or $0.96 per share for the period.

Analysts had expected the company to earn $0.92 per share, according to figures compiled by Thomson Reuters. Analysts’ estimates typically exclude special items.

The company’s revenue for the quarter fell 2.6% to $1.11 billion from $1.14 billion last year.

Paychex Inc. earnings at a glance:

-Earnings (Q3): $348.8 Mln. vs. $351.2 Mln. last year.
-EPS (Q3): $0.96 vs. $0.97 last year.
-Analysts Estimate: $0.92
-Revenue (Q3): $1.11 Bln vs. $1.14 Bln last year.

Paychex Improves FY21 Outlook – Quick Facts

While reporting financial results for the third quarter on Tuesday, payroll and HR services provider Paychex Inc. (PAYX) improved its earnings and revenue growth guidance for the full year 2021, reflecting client base growth and strong client retention.

For fiscal 2021, the company now projects both adjusted earnings per share and total revenues to range between a decline of 2 percent and flat.

Previously, the company expected adjusted earnings per share to decline in a range of 1 to 4 percent and total revenue in a range of down 3 percent to flat.

On average, analysts polled by Thomson Reuters expect the company to report earnings of $2.94 per share on a revenue decline of 1.3 percent to $3.99 billion for the year. Analysts’ estimates typically exclude special items.

European Economics Preview: Eurozone Unemployment Data Due

Unemployment data from euro area is due on Tuesday, headlining a light day for the European economic news.

At 3.00 am ET, Spain unemployment data for March is due from the labor ministry. The number of unemployed increased by 44,400 in February.

At 4.00 am ET, the Society of Motor Manufacturers and Traders releases UK car registrations data for March.

In the meantime, Italy’s Istat publishes unemployment data for February. The jobless rate is seen unchanged at 9.0 percent.

Half an hour later, Eurozone Sentix investor confidence survey results are due. Economists expect the index to rise to 7.5 in April from 5.0 in March.

At 5.00 am ET, Eurostat releases euro area unemployment data for February. The jobless rate is seen unchanged at 8.1 percent.

At 8.30 am ET, the International Monetary Fund releases the World Economic Outlook.

Stock Alert: TimkenSteel Gains 7%

TimkenSteel Corp. (TMST) shares are rising on Tuesday morning trade, continuing a rally since Monday. There was no specific corporate announcement on the day to influence the stock movement.

The shares have reached a year-to-date peak this morning and currently at $12.31, up 7.09 percent from the previous close of $11.49.

The shares have traded in a range of $2.16-$12.85 on average volume of 1,650,388 for the last 52-week period.