Morning Minutes

NASDAQ Slides with Technology and Social Media Stocks Under Pressure




Although US bank earnings were well received to kick off the current earnings season, it has become increasingly clear that investor reaction to results could vary dramatically between sectors. In particular, investors appear to be getting rattled by reports from the technology and communications sectors. Even though results appear positive so far, investors have been using soft guidance relative to high expectations as a reason to head for the door. The negative reaction to tech and communications earnings started with a choppy response to Netflix numbers and accelerated yesterday with IBM which fell 9.5% despite results beating expectations.

This morning finds two more stocks plunging following what on the surface looked like positive earnings reports. Intel is down 9.8% premarket despite positive earnings ($1.71 vs street $1.11) as investors focused more on a sales miss ($18.1B vs street $18.2B), chip shortages and capital investment.

Social media site Snap, meanwhile, has plunged 19.8% premarket despite positive EPS ($0.17 vs street $0.11) as sales missed expectations ($1.07B vs street $1.10B) and management indicated that changes to Apple’s privacy rules have impacted its business more than expected.  Apple is unchanged premarket on this news but social media competitors Facebook and Twitter are both down about 3.0% premarket today.

With technology and social media stocks sliding today, NASDAQ futures are underperforming their peers this morning, down 0.2%, compared with a 0.2% gain for Dow Futures. Commodities are climbing today, led by a 4.1% pop for Natural Gas, while WTI Crude Oil is up 0.9% and Copper is up 0.4%.

There are a number of other earnings reports out in the US today including American Express ($2.27 vs street $1.80), Honeywell ($2.02 vs street $1.99, Mattel ($0.85 vs street $0.75, up 6.6% premarket), and Whirlpool ($6.68 vs street $6.12, down 3.3% premarket after management discussed supply issues).

It’s also a busy morning for economic news. Fed Chair Powell speaks at 3:00 pm EDT. Canadian retail sales roared back even more than expected (2.1% vs street 2.0% and previous -0.6%). Flash PMI reports from Europe this morning were generally positive, particularly the UK, which despite all the recent media coverage of fuel shortages, other supply disruptions, and a new COVID variant, beat expectations for both Manufacturing (57.7 vs street 55.8) and services (58.0 vs street 55.4). US flash manufacturing PMI is due at 10:00 am today with the street expecting readings of 60.3 for Manufacturing and 55.1 for services.

New Video: SIA Wealth September Webinar Replay

A replay of our special Market Outlook Webinar with Ted Bader “Uncharted Waters: Signs of a coming storm” is now available.

YouTube Version:

SIA Wealth In The Media

SIA Wealth Management Chief Market Strategist Colin Cieszynski recently appeared on BNN Bloomberg where he discussed current trends in world markets and earnings season market reaction so far.

TSX Performance is Dependent on how Commodities Perform From Here  

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.