Morning Minutes

Flat Futures Await Fed Interest Rate Decision




US index futures, along with the Dax and FTSE have been listless this morning, bouncing between -0.2% and +0.2%, with many investors apparently sitting on their hands, reluctant to commit ahead of today’s FOMC decision. Natural Gas has been active this morning with a 6.8% gain but other commodity and currency action has been quiet with WTI Crude Oil up 0.1%, Gold up 0.6% and Copper up 0.3%.  

The Fed’s latest interest decision is due at 2:00 pm EDT today. The US central bank is widely expected to announce another 0.75% interest rate increase to 4.00%. Investors may also focus on any comments in the statement and press conference about how long rate hikes may continue and if the pace could slow in the coming months. Last night in testimony to the Canadian Senate Banking Committee, Bank of Canada Governors Macklem and Rogers indicated that while Canadian rate hikes are intended to continue, the pace may of increases may continue to slow (1.00%, 0.75%, and 0.50% over the last three meetings) with inflation pressures starting to ease (Canadian CPI slowed to 6.9% in September from 8.1% in June).

Ahead of the Fed, US economic data released so far this week has been positive, supporting continued monetary tightening.   ADP payrolls exceeded expectations (239K vs street 195K and previous 192K). Yesterday’s ISM Manufacturing PMI, ISM Prices Paid and JOLTS job openings reports all came in better than expected as well.

Earnings reports overnight and this morning have been mixed. AirBNB ($1.79 vs street $1.48), Prudential ($2.13 vs street $2.00), and Toromont ($1.49 vs street $1.34) beat expectations, but Cenovus Energy ($0.81 vs street $0.99), Electronic Arts ($1.25 vs street $1.38) and AMD ($0.67 vs street $0.69) fell short of analyst estimates. Companies scheduled to report results later today include insurers Sun Life, Great West Life, and MetLife, plus Suncor Energy, Nutrien, and Qualcomm.

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.