Adding to yesterday’s US index losses of 1.2% to 1.8%, US index futures are down 0.8%-0.9% this morning. Overseas markets have also been under pressure with the Dax down 1.6%, the FTSE falling 1.2%, and the Nikkei dropping 1.4%. The US 10-year treasury yield has dropped back toward 3.40%. Commodities are mixed with Natural Gas up 0.4% but WTI Crude Oil down 0.6% and Copper down 1.0%.
Economic concerns appear to be dragging on sentiment in the wake of weaker than expected US retail sales and US Empire Manufacturing reports released earlier this week. The Fed’s Beige Book regional economic report indicated inflation pressures continue to ease, the job market remains robust, retailers continue to struggle and businesses appear iffy about the state and prospects for the US economy.
On the other hand, this morning’s round of US economic numbers has been coming in better than expected, including US housing starts (1.382M vs street 1.359M) weekly initial jobless claims (190K vs street 214K) dropping back under 200K, and the Philadelphia Fed Manufacturing Survey (-8.9 vs street -11.0 and previous -13.8). Tomorrow brings Retail Sales numbers for Canada and the UK.
Earnings continue to roll out today. Procter and Gamble posted in-line numbers. Several US regional banks have reported results today, of the six largest, four beat the street while two missed, most notably KeyCorp ($0.38 vs street $0.55). After the close today Netflix reports results with the street currently expecting EPS of $0.55. Schlumberger and more US regional banks headline tomorrow’s earnings slate.
SIA Wealth Update Outlook Webinar With Kyle Wilson and Colin Cieszynski TODAY at 2:00 pm EDT
Please join us on Thursday Jan. 19 @ 12pm MT / 2pm ET for this month’s Market Outlook webinar with Portfolio Manager Kyle Wilson, CFA and Chief Market Strategist Colin Cieszynski CFA, CMT with their 2022 review and 2023 market outlook.
Register for webinar: https://register.gotowebinar.com/register/6082021565258756190