Morning Minutes

Indices Climb Despite Storm Clouds for Video Games




Coming off of a mixed to slightly lower Monday, US index futures have been bouncing back this morning with gains of 0.1% to 0.3%. Over in Europe, the FTSE is up 0.4% while the Dax is up 0.1%. Commodities are under pressure this morning with WTI crude oil down 1.1% and copper down 0.6%. Cryptocurrencies are also sliding today with Bitcoin down 2.8% and Ethereum down 4.9%. Gold is down 0.4%.

Sentiment continues to be impacted by the growing number of Covid Delta cases in the US, but the main action overnight has been in the video game sector. Rumblings out of China comparing online gaming to opium rattled the sector overnight on increased concerns that the sector may be next for Chinese government regulatory intervention. In premarket action, NetEase is down 7.7% while Tencent is down 6.1%. So far, North American video game stocks have not been as impacted with the worst being Take-Two with a 4.0% premarket decline.

A big week for economic news kicked off yesterday with manufacturing PMI reports from around the world. US manufacturing PMI disappointed slightly (59.5 vs street 60.9), while new orders (64.9 vs previous 66.0) and the prices paid inflation (85.7 vs previous 92.1) components eased back a bit. US construction spending was improved but not as much as investors had hoped (0.1% vs street 0.4% and previous -0.2%).

Canadian manufacturing PMI is due at 9:30 am today (previous 56.5). Tomorrow brings US ADP payrolls (street 695K) and services PMI reports from around the world, followed by a Bank of England meeting on Thursday. The week then wraps up with US nonfarm payrolls and Canada employment numbers on Friday.

We continue to move through the heart of earnings season this week. In the US, the tone has started to shift toward mid-cap and smaller companies. Highlights of results from overnight and this morning include: Marriott ($0.79 vs street $0.45), and Under Armour ($0.24 vs street $0.06).

Results continue to flood out from a number of different industries, but it is a particularly busy week for insurance companies Great West Life and Prudential report later today, followed by Manulife, Sun Life and MetLife tomorrow. Forest products are also in focus with Domtar and Cascades reporting Thursday followed by Interfor on Friday. Other senior Canadian companies reporting in this holiday-shortened week include Canadian Natural and Constellation Software Thursday, followed by BCE, Magna, Bombardier and others on Friday.  

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.