Morning Minutes

Corporate Earnings Continue to Beat The Street




US index futures are holding steady this morning, consolidating yesterday’s gains which saw the S&P 500 and the NASDAQ Composite close at new all-time highs. European indices are down slightly with the Dax falling 0.4% and the FTSE slipping 0.2%. The US 10-year treasury note yield is steady just below 1.60% ahead of tomorrow’s Fed decision.

In commodity action, copper continues to climb, gaining another 0.9%. Crude oil is bouncing back with WTI up 0.6%. This week’s rebound for cryptocurrencies also continues with Bitcoin up 2.2% and regaining $55,000. This action suggests that overall investor sentiment remains bullish with India’s COVID troubles being offset by the news that the US is prepared to free up its stockpile of 60 million AstraZeneca vaccine doses for use in other countries.

Morning business news is once again dominated by corporate results as we move into the heart of earnings season. Several senior companies have reported results above expectations overnight and this morning including: 3M ($2.77 vs street $2.29), Tesla* ($0.93 vs street $0.79), UPS ($2.77 vs street $1.72), shipping volumes up 14% over year), and Hasbro ($1.00 vs street $0.65). One significant miss this morning came from Eli Lilly ($1.87 vs street $2.14). After the close today, results are due from Alphabet (Google), Microsoft, Visa, Starbucks, Texas Instruments and others. Boeing headlines US results tomorrow morning.

Late yesterday, the Canadian budget passed the House of Commons and Standard & Poors maintained its national AAA credit rating. Focus now turns to the ramp up of Canadian earnings season with results due from Shopify, Restaurant Brands, and several senior miners plus energy producers later today and through tomorrow. Bank of Canada Governor Tiff Macklem speaks this evening which, since the central bank started cutting back on stimulus last week, may be contrasted with tomorrow’s FOMC meeting statement and following comments from Fed Chair Powell. Canadian retail sales are also due tomorrow morning.   

*Shares of Tesla are held in some portfolios managed by SIA Wealth Management.

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Colin Cieszynski, Chief Market Strategist

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

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