Morning Minutes

High Inflation Overshadows Positive Earnings Reports




Things had been looking up for North American markets today but bullish hopes have been dashed in the last few minutes with markets turning downward on news that US inflation continues to rise, increasing pressure on the Fed to take action US consumer prices jumped 7.5% from a year ago in January, an acceleration from December’s 7.0% pace and came in worse than the 7.3% street estimate. On the other hand, US jobless claims were slightly better than expected (223K vs street 230K).

Before the inflation news, US index futures were steady, digesting yesterday’s gains, but now they have turned downward once again with NASDAQ futures falling 1.2% and S&P Futures falling 0.6%. The US 10-year treasury note yield has popped back up above 1.95% and is approaching the 2.00% big psychological round number hurdle. The US Dollar is also on the rise this morning, gaining 0.8% against Gold, 0.5% against the Yen, and 0.2% against both the Euro and the Canadian Dollar. Commodities have been holding onto this morning’s gains so far with WTI crude oil up 1.1% and Copper up 0.8%.

Canada has now moved into the peak of earnings season with mixed results. Reports from big insurers Manulife Financial ($0.84 vs street $0.82) and Sun Life ($1.53 vs street $1.52) beat expectations, but numbers from Canada Goose is down 10.5% premarket after missing expectations on earnings ($1.42 vs street $1.45) and sales ($586M vs street $590M).  

Several notable stocks in the US are soaring in premarket trading today after posting positive results, including Walt Disney ($1.06 vs street $0.63, up 7.5% premarket), Mattel ($0.53 vs street $0.30, up 10.5% premarket), Uber (-$0.26 vs street -$0.35, up 5.7% premarket), and Coca-Cola ($0.45 vs street $0.41).  Surprisingly, Twitter is up 6.3% premarket despite reporting disappointing results ($0.33 vs street $0.35), except that the stock had already sold off last week along with other social media companies.

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.