Morning Minutes

Stocks Pause As Earnings Season Resumes

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Coming off a strong Monday that saw the NASDAQ gain nearly 1.0% and the Dow post its highest close year to date, US index futures appear to be digesting recent gains and this morning’s earnings and economic news with the three main contracts trading flat to down 0.2%. Over in Europe, the Dax, CAC and FTSE are also trading flat to down 0.2%.

Currency and commodity trading has been more active. Gold is up 0.6% so far today, while Natural Gas is up 3.5%. WTI Crude Oil is up 0.25% but still just below $75.00/bbl, while Copper is down 0.9%.

Earnings season has resumed this morning with a number of positive reports from financial companies including Bank of America ($0.88 vs street $0.84), Morgan Stanley ($1.24 vs street $1.20), plus defense contractor Lockheed Martin ($6.73 vs street $6.45).  The rest of today is relatively quiet for results but tomorrow is busy with numbers due from Netflix*, Tesla*, Goldman Sachs, Halliburton, and United Airlines.

It’s a busy day for economic news. US retail sales unexpectedly slowed a bit (0.2% vs street and previous 0.5%). Canadian inflation numbers showed inflation pressures continuing to ease as Consumer Prices (2.8% vs street 3.2%), Industrial Prices (-0.6% vs street -0.2%), and Raw Material Prices (-1.5% vs street -0.2%) also dropped off more than expected. US Industrial Production is due at 9:15 am EDT today.

*Shares of Netflix and Tesla are held in portfolios managed by SIA Wealth Management.

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Colin Cieszynski, Chief Market Strategist

Colin Cieszynski, CFA, CMT
Chief Market Strategist
ccieszynski@siawm.com
+1 (647) 282-4428

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