Producer Prices, Options and Earnings Drive Pre-Holiday Trading

It’s options expiry day and the last trading day before a long weekend in North America. US index futures have come down in the last few minutes since US economic reports came out.

Higher than expected US producer prices (0.9% vs street 0.6% and previous 1.0%) and lower than expected US housing starts (1.33M vs street 1.46M) provided more evidence of stagflation and once again weakened the case for near term US interest rate cuts. Consumer sentiment is due at 10:00 am EST.

Following this news, the US 10-year treasury note yield has climbed back up above 4.30%.  Dow futures are down 0.3%, while NASDAQ futures have gone from being up 0.5% just before the news, to being up 0.1%.  

Asia Pacific markets rallied last night led by a 2.5% bounce for Hong Kong and a 0.9% advance for Tokyo. In Europe today, the FTSE is up 1.4% on the back of a positive UK retail sales report (0.7% vs street -1.4%), while the Dax is up 0.5%.

Energy trading is mixed with US Crude Oil down 0.3% and Natural Gas up 1.4%. This reversal of recent trading action suggests profit taking or short covering ahead of the weekend. In metals action, Copper is up 1.7% likely getting a boost from improving sentiment toward China, while Gold is down 0.4% and trading just above $2,000/oz.   

Last night’s earnings reports were mixed. Companies beating the street included TC Energy ($1.35 vs street $1.11, up 2.6% premarket), Applied Materials ($2.13 vs street $1.90, up 11.2% premarket) and Coinbase ($1.04 vs street $0.02, up 15.0% premarket). On the other hand, Air Canada (-$0.12 vs street $0.00), Doordash (-$0.39 vs street -$0.13, down 7.3% premarket) and DraftKings (-$0.10 vs street +$0.08) posted disappointing numbers.

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.