Morning Minutes

Canadian Bank and US Retailer Earnings Dominate Morning News




Building on yesterday’s gains of 0.6% to 1.5% for the main US indices, US index futures are up 0.2% to 0.6% this morning. Over in Europe, the FTSE is up 0.6% and the Dax is up 0.8%. In the wake of yesterday’s Fed minutes, which did not contain any major surprises, the US 10-year treasury note yield, the US Dollar against other major currencies, energy commodities, copper and gold are all holding steady this morning as investors take a breather to assess recent action. Cryptocurrencies are getting slammed again today with Bitcoin down 2.2% and trading back under $30,000, while Ethereum is down 7.0% and trading back under $2,000, an indication that investor sentiment remains cautious at best.

The second day of Canadian bank earnings has brought mixed but generally positive news in terms of results and dividends. Royal Bank ($2.99 vs street $2.69, 7.0% dividend increase), released $342 million from previous loan loss provisions) led the way with results also out from TD Bank ($2.02 vs street $1.93, no change to dividend), and CIBC ($1.77 vs street $1.78, 3.1% dividend increase).  Generally speaking, as with yesterday’s reports growth from traditional banking operations was partly offset by weaker capital markets results.

US retail earnings are also in the news this morning with results out from Macys ($1.08 vs street $0.82, up 13.7% premarket), who beat the street and boosted guidance, along with discount retailers Dollar Tree ($2.31 vs street $2.00, up 15.2% premarket) and Dollar General ($2.41 vs street $2.32, up 10.8% premarket).  

In economic news, Canadian retail sales numbers for March were mixed overall with the headline number falling short of expectations (0.0% vs street 1.4%) but the retail sales excluding autos number beating expectations (2.4% vs street 2.0%) as the economy started to reopen. The first revisions to US Q1 GDP saw the headline growth number revised down more than expected (-1.5% vs street -1.3%), while the quarterly GDP price index was revised up slightly (8.1% vs street 8.0%).  

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.