Stocks Retreat As US Earnings Start To Roll Out

US equities and indices had advanced quite significantly since the last earnings season, implying a significant ramp up in investor expectations for the earnings season which starts today. Initial reaction to results suggests that so far, investors appear to be looking to results for reasons to take profits.  

The reaction to non-bank results has been particularly troubling. Recall that in late December both FedEx and Nike were hammered after reporting positive earnings and disappointing guidance. This morning, despite positive earnings UnitedHealth ($6.16 vs street $5.98, down 4.8% premarket) and Delta Air Lines ($1.18 vs street $1.16, down 5.6% premarket) are down significantly in premarket trading.

The main focus of results today, and really for the next week is on the Financial sector. Big Banks reporting today include Bank of America ($0.35 vs street $0.53, down 2.4% premarket), JPMorgan Chase ($3.04 vs street $3.32, up 12.3% premarket), Citigroup (up 1.8% premarket) and Wells Fargo ($0.81 in line, down 1.2% premarket. Asset manager Blackrock is also out today ($9,66 vs street $8.87, down 1.1% premarket).  

US index futures are down 0.3%-0.6% so far this morning. European markets are up so far today with the Dax, CAC and FTSE climbing 0.6%-0.8%. The US 10-year treasury note yield is steady pretty much sitting on 4.00%. US Producer Prices (1.8% vs street 1.9%) were slightly better than expected partially offsetting yesterday’s higher consumer prices. With tensions rising around shipping in the Red Sea and near the Horn of Africa, Crude Oil is rallying today with US and Brent Crude both up about 2.9%. Falling temperatures in North America has Natural Gas popping 3.9%.

A day after the launch of Spot Bitcoin ETFs in the US, Bitcoin itself is down 1.4%. Perhaps due to more mainstream competition, cryptocurrency exchange Coinbase is down 18.4% year to date, including a drop of 6.7% yesterday and is down 1.2% in premarket trading today. Gold is up 1.7% and Silver is up 2.5%. Copper is up 0.1%

SIA Wealth In The Media

Portfolio Manager and Chief Market Strategist recently appeared on BNN Bloomberg where he spoke about current trends in world market heading into earnings season. Replay links are available below:

U.S. presidential cycle has been volatile since 2000: Cieszynski

U.S. bank earnings preview

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.