Morning Minutes

Better Than Expected/Feared Earnings Help Stocks To Rebound




Although yesterday morning’s rebound attempt ended in tears with early gains being erased by a bearish surge that drove the Dow, S&P 500 and NASDAQ to daily losses of 1.0%-1.1%, bulls and bargain hunters are at is again this morning, trying to chip away at recent losses. Currently, Dow futures are up about 0.3% while NASDAQ futures are up about 0.75%. The US 10-year treasury note yield stabilizing in the low 1.80s% appears to be easing some of the downward pressure off of equities but it remains to be seen if this morning’s enthusiasm can hold through a full trading day.

European markets are mixed with the Dax up 0.15% and the FTSE down 0.15%. In overnight Asia Pacific trading, the Hang Seng soared 3.4%, while the Nikkei climbed 1.1%. Commodity action is mixed with WTI crude oil slipping 0.7% but copper climbing 0.75%. Cryptocurrencies are also picking up with Bitcoin gaining 0.75%.

Today’s US economic data has been mixed. Weekly jobless claims continue to ramp up worse than expected (286K vs street 220K), while the Philadelphia Fed Manufacturing Survey was better than expected (23.2 vs street 19.8 and previous 15.4).  

It’s a big day for results from the Transportation sector. Airline earnings reports released overnight and this morning from United (-$1.60 vs street -$2.11) and American (-$1.42 vs street -$1.48) were not as bad as feared and appear to be helping to shore up investor confidence so far today. Other senior companies have beaten expectations this morning including insurer Travelers ($5.20 vs street $3.86), and aluminum producer Alcoa ($2.50 vs street $1.90). Results from Netflix plus railroads CSX and Union Pacific (investors may look to them for comments about supply chain problems) are due after the close this afternoon.  

New Video: SIA Wealth January Webinar Replay

A replay of the SIA Wealth Market Outlook Webinar with Colin Cieszynski – Chief Market Strategist, Paul Vendrinsky and Kyle Wilson – Portfolio Managers, answering questions related to market/sector index composition and performance plus an update on SIA Wealth managed portfolios is now available.

YouTube Version:

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Colin Cieszynski, Chief Market Strategist

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

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