Morning Minutes

Steady Stocks Digest Troubling Retail Sales and Inflation Numbers

low angle view of skyscrapers



US index futures are trading flat to down 0.25% this morning, giving back some of yesterday’s gains, while major European indices are trading flat to up 0.2%. Metals are under pressure this morning with Copper down 2.3% and Gold down 0.6%. Energy contracts are up today with gains of 0.3% for WTI Crude Oil and 1.25% for Natural Gas.

Retail sales numbers have been disappointing this morning. Chinese retail sales did not bounce back as much as hoped (18.4% vs street 21.0% and previous 10.6%). US retail sales also grew less than expected (0.4% vs street 0.7%). Meanwhile US retailer earnings got off to a disappointing start as Home Depot missed on sales ($37.2B vs street $38.3B) and reported a 4.5% decline over year in same store sales. Management blamed part of the decline on lower lumber prices and a shift in consumer spending patterns. It remains to be seen if this is a sign of weaker consumer spending, a result of inflation, or if spending patterns are changing now that the pandemic is officially over in the US.    

Canadian consumer price inflation data also came in worse than expected with headline CPI rising 4.4% from a year ago, which is more than the 4.1% the street had expected and the 4.3% rate reported last month. Statistics Canada blamed the increase on higher mortgage interest and other housing related costs. This could be a concern as it shows how inflation popped last year as commodity prices soared, driving up interest rates which pushed up mortgage costs which has now come full circle and fed back into inflation even though commodity prices have been coming back down.

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.