Morning Minutes

Banking Buyout, The Fed and Earnings In Focus




Coming off of a strong finish to April, which saw US indices gain 0.7%-0.8%, US index futures are flat this morning. Major European markets and some overseas markets are closed today for May Day, but Shanghai gained 1.1% and Tokyo climbed 0.9% in overseas action. Commodity and currency action is all over the place with WTI Crude Oil down 2.0%, Bitcoin down 2.9%, Silver up 1.4%, Copper up 0.2% and Gold is flat.

The main event this morning is the news that US regulatory authorities have forced troubled First Republic to sell off of its $104B in deposits and $229B in assets to JPMorgan Chase for an undisclosed amount following a weekend auction. This means business as usual for depositors today. While this suggests that the US banking crisis once again being quickly stabilized, it leaves questions as to whether there are other troubled situation out there.

We may hear more about the outlook for the US economy and its financial system when the Fed meets this week with its latest interest rate decision and statement due at 2:00 pm on Wednesday. The US central bank is widely expected to raise the Fed Funds rate by another 0.25%, the question is whether it will hint toward a pause or continued tightening moving forward.

It is a quiet day for earnings reports, but the rest of the week is quite busy with results coming from large caps across a broad range of sectors. US headliners include Dupont, Ford, Starbucks, Marriott, Pfizer, and AMD on Tuesday; Qualcomm and MetLife on Wednesday; Apple and ConocoPhillips on Thursday and Warner Bros Discovery on Friday. Canadian earnings season accelerates this week as well with results due from Thomson Reuters Tuesday; Barrick Gold, Loblaws, Stelco, Canfor and others Wednesday; BCE and Telus on Thursday; and Enbridge plus Magna on Friday.

Countries that are open have been posting monthly PMI reports. China missed on Manufacturing PMI (49.2 vs street 51.4), but beat expectations on Non-Manufacturing PMI (56.4 vs street 50.4). Canadian Manufacturing PMI is due at 9:30 am EDT today (street 50.5 vs previous 48.6). US ISM Manufacturing PMI (street 44.6) is due at 10:00 am EDT along with US Construction Spending (street -0.1%). Manufacturing and Service PMI reports continue through the week along with employment numbers which include US ADP payrolls on Wednesday, and US Nonfarm Payrolls plus Canada jobs on Friday.

Subscribe to the Morning Minutes:

Today's earnings reports and market activity, delivered right to your inbox.

Colin Cieszynski, Chief Market Strategist

Colin Cieszynski, CFA, CMT
Chief Market Strategist
+1 (647) 282-4428

Read More

Legal and Regulatory Disclosures

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.