Morning Minutes

Big Earnings Beats Boost Stocks




Bouncing back from yesterday’s US index declines of 0.6%-1.7%, US index futures are up 0.6%-1.0% this morning. European bourses are also in the green today with the Dax up 1.25% and the FTSE up 0.75%. Commodity action is mixed with WTI Crude Oil down 0.7% and Copper up 1.3%.

Investors have responded positively to a series of better-than-expected earnings reports out of the US overnight and this morning. Highlights include Walt Disney ($0.99 vs street $0.78, up 6.1% premarket), Hilton ($1.59 vs street $1.22), luxury retailer Tapestry ($1.36 vs street $1.27, up 7.6% premarket), Pepsico ($1.67 vs street $1.66), and manufacturer BorgWarner ($1.26 vs street $1.08). The one major miss overnight was Mattel ($0.18 vs street $0.29 down 11.5% premarket).   

It’s also a big day for earnings in Canada. Insurers did well as both Sun Life ($1.69 vs street $1.54) and Great West Lifeco ($0.96 vs street $0.88) beat expectations. So far today, Thomson Reuters ($0.98 vs street $0.88), and Cameco ($0.09 vs street $0.06) have exceeded estimates. The most notable miss so far has been Canopy Growth (-$0.54 vs street -$0.21).

US initial jobless claims have come in below 200K for the fifth week in a row, indicating its job market remains robust. Canadian employment is due at 8:30 am EDT this morning with the street expecting an increase of 14K jobs. Average hourly wages (previous 5.2%) may also attract attention as an indicator of wage pressures.   

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Colin Cieszynski, Chief Market Strategist

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

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