Morning Minutes

Meta Earnings Beat Drives NASDAQ Rally; US GDP Comes In Strong




Coming off of a mixed Wednesday that saw the Dow post a 13th straight winning day, the S&P 500 finish flat and the NASDAQ finish down marginally, equity markets are rallying this morning. NASDAQ futures are up 1.3%, while S&P futures are up 0.6% and Dow futures are up 0.2%, suggesting that leadership may be shifting back to tech and communications for the first time in a while. In Europe today, the Dax is up 1.2% while the FTSE is up 0.2%. WTI Crude Oil is up 1.2% approaching $80.00/bbl, while Natural Gas is down 1.9%.

Meta Platforms is leading the charge this morning, soaring 10.3% in premarket trading after beating the street on EPS ($2.98 vs street $2.91), posting stronger than expected user numbers and issuing positive guidance. Other notable companies with results out this morning include McDonalds ($3.17 vs street $2.78), Linde* ($3.57 vs street $3.47), Agnico-Eagle ($0.86 vs street $0.73), Cenovus Energy ($0.44 vs street $0.40), and FirstService ($1.93 vs street $1.76). Later today, results are due from Intel, MasterCard, Abbvie, Canadian Pacific, and others.

Investors also appear be responding positively to the notion that the current US rising interest rate cycle may be nearing an end for now. Although the Fed and the European Central Bank both raised their benchmark rates yesterday afternoon and this morning respectively, the Fed in particular was non-committal on the amount and timing of future increases in its statement and at Chair Powell’s press conference shifting to a data-dependent, meeting-by-meeting approach. In Europe, where the central bank is still trying to catch up to its peers, the statement was more hawkish indicating that the outlook for inflation remains “too high for too long”. The Bank of Japan meets tonight.

In economic news, US Q2 GDP has come in much stronger than expected (2.4% vs street 1.8% and previous 2.0%), while the inflation component has come in weaker than expected (2.6% vs street 3.0% and previous 4.1%), which can also be seen as positive. In other news, US durable goods orders (4.7% vs street 1.0%) and weekly initial jobless claims (221K vs street 235K) have also surpassed expectations. US pending home sales are due later this morning.  

*Shares of Linde are held in some portfolios managed by SIA Wealth Management.

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.