Morning Minutes

Stocks Keep Climbing as Earnings Season Rolls On

Share:

Facebook
Twitter
LinkedIn
Email
Print

Overseas stock markets built on yesterday’s US rebound overnight, led by the Nikkei soaring 2.4%. The Dax and the Hang Seng both gained about 0.5% while the FTSE is up 0.2% today. US index futures are steady, consolidating yesterday’s gains of 0.9% to 1.2% for the three big indices and a 2.3% pop for the Russell 2000.

Investors continue to respond favorably to stronger than expected earnings reports coming out from a wide cross-section of sectors. Notable reports include: appliance producer Whirlpool ($7.20 vs street $5.41), Chipotle Mexican Grill ($5.36 vs street $4.89, same store sales up 17%), Southwest Airlines (-$1.72 vs street -$1.85), and AT&T ($0.86 vs street $0.78).  

Economic news continues to indicate an improving North American economy. US weekly jobless claims of 547K beat the 617K street estimate and were the lowest weekly reading since March of 2020. Monthly growth in Canadian new house prices slowed in March to 1.1% from 1.9% in February and came in below the 1.4% street estimate suggesting that the red-hot housing market may be cooling slightly.

Yesterday, the Bank of Canada gave the economy a big vote of confidence in the face of current lockdowns by reducing its weekly asset purchases to $3B from $4B and moving up its forecast of the economy being strong enough to allow rate hikes to the second half of 2022 from sometime in 2023. The European Central Bank maintained its current benchmark interest rate and asset purchase program at its meeting this morning.  

A busy day for US earnings reports continues after the close with Intel, Mattel and Union Pacific headlining, followed by American Express and Schlumberger tomorrow morning.

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