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.