Morning Minutes

Rising Costs and Mixed Corporate Results Drag on Markets




Stock markets around the world have continued to decline this morning. In Europe the Dax and the FTSE are both down 1.8%. In the US, NASDAQ futures are flat after their index dropped 1.4% yesterday Dow futures are down 0.3% after their index was flat yesterday.

Inflation and interest rates remain a hot topic today. US Core PCE inflation (the Fed’s preferred measure) for December increased to its highest level since 1983 (4.9% vs street 4.8% and previous 4.7%). The US 10-year treasury note yield has continued to climb on this news trading above 1.85%. Currency action is mixed today with the US Dollar levelling off, Bitcoin bouncing back with a 2.4% gain and gold sliding farther back under $1,800/oz with a 0.4% decline today.

In commodity action today energy prices are soaring again with WTI crude oil up 2.0% and natural gas soaring nearly 6.00%.

It’s another big day for corporate earnings with mixed results. Canadian Pacific missed on adjusted earnings ($0.95 vs street $0.96), as bad weather in the mountains and other supply chain related disruptions impacted operations. In the US today, investors have responded favorably to particularly strong results from Apple ($2.10 vs street $1.89, up 2.9% premarket) and Visa ($1.81 vs street $1.70, up 4.7% premarket). On the other hand, Caterpillar noted its margins have been getting squeezed by rising costs despite a strong headline number ($2.69 vs street $2.26, down 4.2% premarket), and Chevron missed expectations despite rising energy prices ($3.12 vs street $2.56, down 4.1% premarket).  

SIA Wealth In The Media:

Chief Market Strategist Colin Cieszynski appeared on BNN Bloomberg today where he discussed earnings and premarket trading in Apple and Caterpillar.

Apple soars in the pre-market

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Colin Cieszynski, Chief Market Strategist

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

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