China Trade and Canada Earnings In The Spotlight

Following a mixed day of trading in US markets that saw the Dow rise 0.4% and the NASDAQ all 0.2%, US index futures are all down about 0.15% this morning. Over in Europe, the Dax is up 0.6%, and the FTSE is down 0.4%.

China-sensitive markets responded favorably to better than expected Chinese exports (1.5% vs street 1.0%, a sign of a strengthening economy), and imports (8.4% vs 5.4%, a sign of strong demand for commodities). Hong Kong rallied 1.2%, while Shanghai rose 0.8%. Commodity action is mixed. US Crude Oil is up 0.7% but still below $80.00/bbl, while Copper is flat. Currency action is quiet with Gold and the Loonie both flat against the US Dollar, but cryptos are sliding with Bitcoin falling 1.7%.    

The US 10-year treasury note yield has climbed back up above 4.50% after Fed speakers reiterated the US central bank’s neutral, higher for longer stance on interest rates. The Bank of England maintained its benchmark interest rate at 5.25% but this time 2 MPC members voted for a rate cut, up from 1 dovish vote last meeting. Later today Bank of Canada Governor Macklem is speaking on the release of the latest Canadian Financial System Review.  

It’s a big day for earnings in Canada. Canadian Tire ($1.38 vs street $0.69) had a blowout quarter and several other senior companies beat expectations including: Manulife Financial ($0.94 vs street $0.91), Nutrien ($0.63 vs street $0.52), WSP Global* ($1.55 vs street $1.47), Stantec* ($0.90 vs street $0.86), Pan American Silver* (+$0.01 vs street -$0.08). Later today, results are due from Sun Life Financial, and Wheaton Precious Metals.

On the US/ADR side, AirBNB and ARM Holdings are getting pounded in premarket action this morning despite positive earnings with traders focusing more on soft guidance. Warner Bros Discover disappointed badly again (-$0.40 vs street $-.20), and perhaps even worse, the announcement that it is bundling its MAX streaming service with Disney Plus+ had absolutely zero impact on competitor Netflix*.

* Shares of Netflix, WSP Global, Stantec and Pan American Silver are held in some portfolios managed by SIA Wealth Management.

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