Morning Minutes

Early PMI and Earnings Reports In Focus



The last trading day of the month and the day before a long weekend for many countries overseas (Orthodox Easter and May Day) finds stocks and commodities mixed as investors weigh the growing COVID outbreak in India against signs of progress plus positive economic and earnings news in other countries.

US index futures are down 0.4%-0.6% this morning, giving back yesterday’s gains of 0.2%-0.7%. In Europe, the Dax is up 0.3% but Asia Pacific markets were down, particularly the Hang Seng which plunged 1.9%. Commodities are also heading in opposite directions with WTI crude oil down 2.4% while copper is up 0.7%.

Early monthly purchasing managers surveys (PMI) from Asia were positive overnight with Japan Manufacturing (53.6 vs street 53.3), China Non-Manufacturing (54.9 vs street 52.6), and China Caixin Manufacturing (51.9 vs street 50.8) coming in above 50 in expansion territory and above expectations. US Chicago PMI, a preview of Monday’s national number, is due at 9:45 am EDT (street 65.3 vs previous 66.3).

Earnings reports were also mixed overnight. Companies beating expectations include: ($15.79 vs street $9.74), Restaurant Brands ($0.55 vs street $0.50), Exxon Mobil ($0.65 vs street $0.59), and Western Digital ($1.02 vs street $0.68). On the other hand, Twitter has been hammered down 13.0% in premarket trading. Although the social media companies earnings beat expectations ($0.16 vs street $0.14), daily active users (199M vs street 200M) and revenue guidance ($980M-$1.08B vs street $1.06B and previous $1.03B) fell short of what investors seemingly were hoping for.  

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Colin Cieszynski, Chief Market Strategist

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

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