Indexes Climb Despite Post-Earnings Selloffs

Building on yesterday’s all time high for the S&P 500 (by one measly point), US index futures are trading flat to up 0.5% this morning, with the NASDAQ leading gains. Investors appear to be focusing on the potential for more trade deals ahead of Friday’s US tariff deadline and looking ahead to tomorrow’s central bank meetings and payrolls data.

Meanwhile, the reaction to earnings reports has been very mixed so far. Celestica is up 10.9% premarket after beating the Street ($1.91 vs Street $1.71) in what could potentially be seen as a positive sign kicking off a big week for Big Tech earnings. On the other hand, health care stocks are getting slammed post earnings with Novo Nordisk down 19.4%, Merck down 4.1%, and UnitedHealth down 2.3% on murky guidance.

UPS and Royal Caribbean Cruises are also sliding post-earnings, down 5.8% and 3.3% respectively pre-market. In other news, Air Canada came in below expectations, TFI International beat expectations. Companies reporting later today include Boeing, Procter & Gamble, Spotify, Starbucks, and Booking Holdings*.

European markets are bouncing back today, with the Dax up 1.1%, the CAC up 1.2%, and the FTSE up 0.5%. Crude Oil is 0.3%, while Natural Gas is up 2.3%, and Copper is up 0.2%. Gold is up 0.3% today along with the Euro and Loonie as the US Dollar slips back slightly.

*Shares of Booking Holdings are held in some portfolios managed by SIA Wealth Management.

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