Yesterday’s relief rally in easing Ukraine tensions continued through Asia Pacific trading overnight, where the Nikkei soared 2.0%, but has faded this morning as investors turn their attention back to regular business news. US index futures are down about 0.2%, while in Europe, the Dax is down 0.2% and the FTSE is down 0.4%.
Currency action is quiet today except for a 0.3% gain by the Canadian Dollar against the US Dollar which may be getting a tailwind from a big rebound in energy prices. WTI crude oi is up 1.25%, while natural gas has jumped 6.8%. Gold and Bitcoin are both down about 0.2%.
A couple of big economic announcements are out today. US retail sales had a stellar month in January bouncing back from a weak December (3.8% vs street 2.0% and previous -2.5%), a positive sign for the North American economy. Inflation pressures remain high, however, as Canadian consumer prices increased more than expected (5.1% vs street 4.8%).
It’s a big day for earnings reports, especially in Canada, headlined by Shopify who beat expectations on earnings ($1.36 vs street $1.26), but is down 6.1% in premarket trading after management indicated it expects sales growth to slow this year as online pandemic shopping fades. Barrick Gold beat expectations ($0.35 vs street $0.30), but West Fraser Timber indicated that December’s landslides and road/rail closures impacted its operations and sales.
US results were very mixed. In the hotel/casino space, AirBnB beat expectations but Hilton and Wynn disappointed. Roblox and La-Z-Boy are also down premarket after missing expectations. Later today, results are due from tech giants Nvidia and Cisco, along with Nutrien, GoEasy, and Kinross Gold north of the border.
SIA Wealth Market Outlook Webinar Thursday, February 17th 2:00 pm EDT
Please join us on Thursday, February 17 @ 12pm MT / 2pm ET for our Market Outlook Webinar with Colin Cieszynski, Chief Market Strategist. We will be answering questions from advisors and media related to the impact of high inflation in North America and the risk of war in Europe on stock markets, sector rotation, real estate, energy prices and more.
The link to register for the webinar: https://register.gotowebinar.com/register/7546235695045737232
After registering, you will receive a confirmation email containing information about joining the webinar. A replay will be available and sent to all registrants after the webinar.