Yesterday’s rebound in North American markets continued through overseas trading sessions overnight. Today, positive earnings reports from some of the largest US companies have kept the rally going. The FTSE is up 1.3% today while the Dax is up 0.5%.
Dow Industrials member companies Coca-Cola (EPS $0.68 vs street $0.56 and Sales $10.1B vs street $9.3B, sales back above 2019 levels in some markets), Johnson & Johnson (EPS $2.48 vs street $2.27, sales $23.3B vs street $22.2B), and Verizon ($1.37 vs street $1.30) have all exceeded expectations with today’s results. Other US companies posting positive numbers include Chipotle Mexican Grill ($7.46 vs street $6,52), Intuitive Surgical ($3.92 vs street $3.07), and Harley Davidson ($1.33 vs street $1.17). Mattress maker Sleep Number, however, missed badly ($0.88 vs street $0.16, down 12.1% premarket).
Last night, Netflix posted mixed results with net subscriber additions beating analyst estimates (1.54M vs street 1.19M) but EPS missing ($2.97 vs street $3.16). Netflix’s disappointing numbers appear to be dragging on NASDAQ futures this morning, which are down 0.3%, compared with a gain of 0.3% for Dow futures with three of its thirty member companies posting strong results.
Signs of investor fears easing a bit can also be seen in commodities and cryptocurrencies climbing while havens like US bonds have levelled off and gold has declined 0.5%. WTI crude oil is up 1.25% today, shrugging off a 0.8 mmbbl build in weekly US API inventories. DOE inventories are due at 10:30 am EDT today (street -4.4 mmbbl drawdown). Meanwhile, Bitcoin has regained the $30,000 level with a 5.5% gain.
SIA Wealth In The Media
Chief Market Strategist Colin Cieszynski recently appeared on BNN Bloomberg where he discussed recent weakness in equity and energy markets, relative strength and tactical rotation across asset classes.