Jobs, Services, Earnings And Energy News In Focus

Service PMI reports have been rolling out from around the world tonight and this morning and for the most part, the numbers have been better than expected and better than the manufacturing surveys which were released earlier this week. The UK and China did particularly well, while Continental Europe, Japan and Australia remain stuck below 50 in contraction territory. US S&P Global Service PMI (street 51.3) is due at 9:45 am EST.

Asia Pacific markets continued to struggle overnight coming off of yesterday’s US index losses of 0.7%-1.2%, but stocks appear to be stabilizing this morning. In Europe, the Dax is up 0.1% and the FTSE is up 0.2%. US index futures are mixed between a 0.25% gain for Dow Futures and a 0.25% loss for NASDAQ futures.

US ADP payrolls (164K vs street 115K) and weekly US initial jobless claims (202K vs street 216K) both came in much stronger than expected, indicating a robust US job market. Tomorrow morning, US nonfarm payrolls (street 170K vs previous 199K), and Canada jobs (street 13K vs previous 25K) are due. The wage inflation components US average hourly earnings (previous 4.0%), and Canada average hourly wages (previous 5.0%) may also attract scrutiny from investors.

Energy contracts are rallying this morning with Crude Oil up 1.1% and Natural Gas up 4.3%. Investors have responded positively to a big 7.4 mmbbl drawdown in US weekly API inventories which were released last night. Energy markets may remain active through the day with weekly EIA natural gas storage (street -40BCF) due at 10:30 am EST, followed by weekly DOE oil inventories (street -3.7 mmbbls) at 11:00 am.   The first earnings report of the year has been a mixed bag. Drugstore chain Walgreens Boots beat the street on earnings ($0.66 vs street $0.62) but slashed its dividend nearly in half ($0.25 vs previous $0.48). Management blamed the dividend cut on a need to strengthen its balance sheet and cash position, an ominous sign about the state of the company’s finances. Still, Walgreens shares are up 2.4% in premarket trading this morning after falling 4.0% yesterday.

Terms and Conditions:

This information is for Investment Advisors only. The website is for informational purposes only and is not intended to provide a complete description of SIA Wealth Management’s products or services. Past performance is not indicative of future results. It should not be construed as investment advice or relied upon in making an investment decision. Products and services of SIA Wealth Management are only offered in jurisdictions where they may be lawfully offered for sale. The information contained in this Website does not constitute an offer or solicitation by anyone to buy or sell any investment fund or other product, service or information to anyone in any jurisdiction in which an offer or solicitation is not authorized or cannot be legally made or to any person to whom it is unlawful to make an offer of solicitation. All products and services are subject to the terms of each and every applicable agreement. It is important to note that not all products, services and information are available in all jurisdictions outside Canada.

SIA Wealth Management Inc. (SIAWM) specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investor’s investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, Advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIA Wealth Management Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.