Overseas Rally Continues as Technology Earnings Weigh on NASDAQ

Overseas equity markets are broadly extending the post-US election rally, while US index futures are mixed. Technology stocks are under pressure following a disappointing market reaction to several earnings reports. Energy prices are attempting to rebound, but remain well below pre-election levels following yesterday’s sharp declines.

The Bank of England raised its benchmark interest rate by 0.25% to 4.00%, as widely expected. Insurers Manulife Financial* ($0.87 vs Street $0.83), Sun Life ($1.44 vs Street $1.41), Great West Life ($1.04 vs Street $1.01), MetLife ($2.85 vs Street $2.77) and Allstate ($9.76 vs Street $6.89) all reported earnings above expectations. Qualcomm ($2.17 vs Street $2.16) and Snap ($0.18 vs Street $0.16) also exceeded earnings forecasts, but their shares are down 11.7% and 10.5%, respectively, in premarket trading. Nutrien disappointed ($0.60 vs Street $0.79). Earnings due later today include Canadian Natural Resources, TC Energy, ConocoPhillips, Bombardier and Airbnb, followed by Brookfield, Telus, Enbridge and Constellation Software on Friday.

NASDAQ futures are down 0.9%, while Dow futures are up 0.6%.

In Asia, the Nikkei fell 1.8%, while the Hang Seng gained 3.6%. In Europe, the DAX is up 0.5% and the FTSE is up 0.8%.

Crude Oil is up 2.0%, but remains below $90.00/bbl, while Brent Crude is up 2.9%, trading below $97.50/bbl. Gasoline is up 2.2%, but remains below $2.80/gallon. Gold is up 1.3%, rallying above $4,125/oz, Copper is up 0.3%, trading near $6.40/lb, and Silver is up 0.6%. US 10-year and 30-year Treasury Note yields are steady near 4.90% and 5.30%, respectively. The USD Index is up 0.1%, the Euro is down 0.1% and the Loonie is steady.

* Shares of Manulife Financial, Cenovus Energy, Canadian Natural Resources and ConocoPhillips are held in some portfolios managed by SIA Wealth Management.

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