Morning Minutes

Stocks Climb as Several US Earnings Reports Beat The Street




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.

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.