Stocks Bounce Back From a Correction

US index futures are up 0.3% to 0.8% this morning as markets try to claw back some of yesterday’s US index losses of 1.3% to 1.8%. Over in Europe today, the FTSE is up 1.0% and the Dax is up 0.4%. The US 10-year treasury note yield is steady near 4.30%. UK consumer prices were unchanged but slightly better than expected (4.0% vs street 4.2%).

Volatile overnight trading in Lyft provides an example of how frothy markets have become lately. Shares initially soared 58.4% in aftermarket trading on a mistake in the company’s guidance. A comment that one metric was expected to improve by 50 basis points was incorrectly published as 500 basis points. After management corrected the mistake afterward, the shares crashed back down nearly to where they started and are currently up 19.6% in premarket trading.

Other companies who reported results overnight include AirBNB* (-$0.55 vs street $0.66, down 5.4% premarket), and GoEasy* ($4.01 vs street $3.95). After the close today results are due from Manulife Financial and Great 58.4%West Lifeco in Canada, and Cisco Systems in the US.

US Crude Oil is up 0.1%, shrugging off a 8.5 mmbbl build in weekly API Crude Oil inventories which came out last night. DOE weekly inventories are due at 10:30 am EST. Even with a winter storm hitting the northeast US, natural gas futures are down 1.0% this morning as we move through the back half of heating season. Metals are quiet today with gold down 0.1% and copper up 0.3%.

It’s a quiet day for economic data in North America but a busy one for central bank speeches including three Fed members, two officials from European central banks and one from Australia this evening. Investors may look for comments on the future direction of interest rates in the wake of yesterday’s stronger than expected inflation readings from the US and the UK.

Tomorrow is a busier day for economic reports including US retail sales and industrial production plus US regional surveys and the first housing data for this month from the US and Canada.

*Shares of AirBNB and GoEasy are held in some portfolios managed by SIA Wealth Management.

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