Morning Minutes

Steady Stocks Await Earnings Reports and Central Bank Decisions

oil-and-gas

Share:

Facebook
Twitter
LinkedIn
Email
Print

Stock markets around the world are mixed to start the new trading week. US index futures plus the Dax and FTSE are all between +0.2% and -0.2% this morning while in Asia Pacific trading the Nikkei gained 0.4% while the Hang Seng lost 0.4%. The US treasury yield is up slightly trading near 1.60%.

Weekend news was mixed. The US CDC and FDA regulators allowed the use of Johnson & Johnson’s COVID vaccine to resume after an investigation into reports of blood clotting, but the spread of new cases in India has continued to spiral upward. Commodities are mixed today with WTI crude oil down 1.5% but copper up 1.9%. Oil may remain active through the week with OPEC meeting on Wednesday. With oil weakening today, CAD is down 0.3% against USD while other major paper currency pairs along with precious metals are quiet. Cryptocurrencies are on the rebound this morning with Bitcoin regaining $50,000 and advancing on $53,500 with an 8.2% rally.

It’s a quiet morning for corporate news but earnings season resumes later today with results from Tesla* and Canadian National Railway due this afternoon. The rest of the week brings a flurry of results from Big Oil, Big Pharma, Big Tech and other groups ahead of month-end. Highlights of the next few days include: Google, Microsoft and Visa Tuesday, Apple, Boeing, Facebook, Ford, Shopify and Restaurant Brands Wednesday, Amazon.com, Caterpillar*, MasterCard, McDonalds, Merck, Newmont, Twitter and others Thursday, wrapping up with Exxon Mobil, Chevron, Imperial Oil and AstraZeneca on Friday.  

Wednesday evening US President Biden delivers a prime-time speech to Congress which investors may particularly watch for indications on potential tax changes or hikes for individuals or corporations, particularly after last week’s hints about a possible capital gains tax increase for high earners. There are two notable central bank meetings this week, the Bank of Japan tonight and the US Federal Reserve Board on Wednesday. Recent market action suggests that investors are expecting both central banks to keep the pedal to the metal on stimulus, but any hints toward taking the foot off the gas in future (like the Bank of Canada did last week) or trimming around the edges (like the Fed did by restoring bank capital requirements last month), could attract attention from the street.

The last week of the month brings a flurry of economic announcements including US durable goods orders this morning which bounced back in March but not as much as the street had hoped (0.5% vs street 2.5% and previous -0.9%). Retail sales for Canada are out on Wednesday, followed by US Q1 GDP on Thursday. The week wraps up with manufacturing plus service PMI reports for China and the US Chicago PMI report ahead of the usual deluge of PMI reports to kick off the new month next week.

*Shares of Tesla and Caterpillar are held in some portfolios managed by SIA Wealth Management.

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
ccieszynski@siawm.com
+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.

INTERNET EXPLORER NOTICE