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Rising Inflation Overshadows Strong US Earnings; Webinar Today

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US Q2 earnings season is off to a very positive start with three senior companies crushing street expectations including Goldman Sachs (EPS $15.02 vs street $10.24, revenues $15.3B vs street $12.1B), JPMorgan (EPS $3.78 vs street $3.21, $2.3B benefit from the release of loan loss reserves), and PepsiCo (EPS $1.72 vs street $1.53, sales $19.2B vs street $19.9B, company benefitted from economy reopening, especially restaurants). Response to these results, however, has been muted in premarket action so far.

Economic news has also picked up. Overnight China reported a much stronger than expected trade surplus ($51.5B vs street $44.2B). Both export (20.2% vs street 29.6%) and import growth (24.2% vs street 32.3%), were weaker than expected. The Hang Seng rallied 1.6% on the news, but copper dropped 1.0%.  

US inflation pressures continue to build. Headline consumer prices (5.4% vs street 4.9%) and consumer prices excluding food and energy (4.5% vs street 4.0% and previous 3.8%) both accelerated even more than the street had feared.

Since the inflation report came out, US index futures have dropped 0.2%-0.3% into the red after spending the morning flat to up 0.3%. The 10-year treasury note yield has moved up a bit as well from near 1.34% toward 1.38%. Over in Europe, the FTSE and DAX have been flat through the morning. WTI crude oil is also steady so far today.

SIA Wealth Market Outlook Webinar Today July 13, 2:00 pm EDT

Please join us on Tuesday July 13 @ 12pm MT / 2pm ET for our Market Outlook Webinar with Jeremy Fehr.  He will answer the most asked questions we have received from advisors over the past month.

Register for webinar:  https://attendee.gotowebinar.com/register/2886200842082435855

Disclaimer: 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. SIAWM 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.

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At SIA Wealth Management everything we do is based on Relative Strength Analysis. We evaluate the Relative Strength between asset classes giving us insight into money flows on a large scale, and from this select top ranked investments.

Colin Cieszynski, Chief Market Strategist
Market Commentary:

Colin Cieszynski, CFA, CMT
Chief Market Strategist
ccieszynski@siawm.com
+1 (647) 282-4428

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