Morning Minutes

Investors Digest US Retail Sales and Earnings News




US markets have been holding generally steady this morning. Dow futures are up 0.3%, clawing back most of yesterday’s 0.4% index loss, while NASDAQ futures are flat coming off a flat close for that index. Over in Europe, markets are bouncing back this morning, with the Dax up 1.2% and the FTSE up 0.8%.  

US retail sales for June came in better than expected this morning (1.0% vs street 0.8%), along with the Empire State Manufacturing Survey (11.1 vs street -2.0). US industrial production is due at 9:15 am EDT (street 0.1%).  

China reported very mixed data overnight that was heavily distorted by major regions moving in and out of lockdowns during the quarter. Q2 GDP was worse than expected (0.4% vs street 1.0% and previous 4.8%), along with June industrial production (3.9% vs street 4.1%). Retail sales for June were better than expected (3.1% vs street 0% and previous -6.7%).  Shanghai fell 1.6% and Hong Kong dropped 2.2% on this news.

Day 2 of earnings season finds UnitedHealth beating expectations ($5.57 vs street $5.21). Banks, had mixed results. Citigroup beat the street ($2.19 vs street $.1.68, but Wells Fargo ($0.74 vs street $0.80) missed estimates and raised loan loss provisions. Asset manager Blackrock also disappointed investors ($7.36 vs street $7.87). Regional bank results were mixed with PNC Financial beating the street but US Bancorp and Bank of New York Mellon falling short of expectations.

At appears some investors may have started to go bargain hunting. Pinterest is up 12.3% in premarket action this morning on news that Elliot Management, an activist investor has bought a 9% stake in the social media company. Yesterday there were media reports that Warren Buffett has continued to add to his position in Occidental Petroleum this week.

Commodity and currency action is mixed today. WTI crude oil is up 1.5% but still trading below $100.00/bbl, while copper is down 0.8%. The US Dollar has backed off a bit, enabling the Euro to bounce 0.5% and still hold parity while the Canadian Dollar is up 0.3%. gold is down 0.3% sitting on $1,700/oz.

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Colin Cieszynski, Chief Market Strategist

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

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