Morning Minutes

Stocks Rebound Amid Positive PMI and Mixed Earnings Reports




Stock markets around the world have kicked off March with rallies, led by a 4.2% surge for the Hang Seng, along with a 1.0% gain for Shanghai, advances which were sparked by stronger than expected PMI reports out of China. Chinese Non-Manufacturing PMI popped back up above 50 into expansion territory (51.6 vs street 50.2 and previous 49.2), while Chinese Manufacturing PMI also beat expectations. Manufacturing reports from Japan, Australia, and Europe also have generally been coming in better than expected, helping to drive gains in other markets, including rises of 0.5% for the Dax and 0.9% for the FTSE.

Shrugging off a soft finish to February, which saw major US indices slip 0.1%-0.7% on Tuesday. US ISM Manufacturing PMI (street 48.0 vs previous 47.4) is due at 10:00 am EST, with investors looking for the national number to offset yesterday’s soft Chicago PMI report. The New Orders and Prices Paid components may also attract scrutiny from traders. US Construction Spending (street +0.2% vs previous -0.4%) is due at the same time. Canadian Manufacturing PMI (street 50.1) is scheduled for 9:30 am EST.

Earnings reports on both sides of the border are mixed once again. Canadian bank earnings continue to roll out with Royal Bank ($3.06 vs street $2.96), and National Bank ($2.57 vs street $2.39) both beating expectations, but raising credit loss provisions. In the US today, Lowes beat on earnings ($2.28 vs street $2.21), but sales and sales guidance were soft. Notable misses today stateside included fashion retailer Kohls (-$2.49 vs street +$0.98, down 7.6% premarket), and AMC Entertainment (-$0.26 vs street -$0.21, down 4.7% premarket).

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.