Morning Minutes

New Years Rally Continues as More Manufacturing PMI Data Rolls In




The US kicked 2022 off with a nice rally featuring gains of 0.7% for the Dow to 1.2% for the NASDAQ. Investors returned from the holiday season in a good mood and responded positively Tesla Motors’ Q4 (308K vs street 267K) and full year (936K vs street 897K) deliveries numbers, both of which beat street expectations.

This morning the New Years Rally continues with US index futures all up about 0.2%. Markets are higher overseas as well with the Nikkei soaring 1.7%, the FTSE jumping 1.4% and the Dax gaining 0.7%. US treasury yields continue to climb, and are trading above 1.65% this morning suggesting that investors continue to anticipate a strengthening economy, high inflation and rising interest rates. Commodity and currency action is mixed. WTI crude oil is up 0.1% trading above $76.00/bbl, while natural gas is up 2.6%. Metals, on the other hand, are struggling with copper down 0.7% and gold flat sitting just below $1,800/oz.

OPEC+ is meeting today with media reports suggesting the cartel is expected to continue restoring production at a rate of 400K bbl/d per month. An acceleration of production increases could potentially weigh on the price which a decrease to planned production increases could give oil even more of a possible tailwind.

UK manufacturing PMI came out this morning above expectations (57.9 vs street 57.6), building on yesterday’s generally positive European numbers. The focus now turns to North America with Canadian manufacturing PMI due at 9:30 am EDT (street 57.5 vs previous 57.2). US ISM manufacturing PMI is due at 10:00 am EDT (street 60.2 vs previous 61.1). Investors may also be keeping an eye on the prices paid (street 79.5 vs previous 82.4), and new orders (street 60.7 vs previous 61.5) components.

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.