Rebounding from Tuesday losses of 1.0%-2.0% for US indices, US index futures are trading flat to up 1.0% today with NASDAQ futures leading the charge boosted by another round of strong earnings results overnight and into this morning. Dow futures are dragging with a dark cloud still hanging over the sector after the extent of the damage done at First Republic in last month’s banking crisis became clearer this week.
Although most of the attention has been on Big Tech, positive reports have been coming out from across a number of sectors. Highlights from US earnings reports overnight and into this morning include Microsoft* ($2.45 vs street $2.24, up 7.9% premarket), Alphabet ($1.17 vs street $1.08), Texas Instruments ($1.85 vs street $1.77), Visa ($2.09 vs street $1.99), and Chipotle* ($10.50 vs street $8.95, up 7.8% premarket). The most notable miss so far has been Boeing (-$1.27 vs street -$1.07), but investors appear to be responding more to an increase of 737 Max production as its shares are up 3.6% premarket. Meta Platforms is the main name in the US reporting after the close this afternoon.
In Canada today Cenovus Energy ($0.32 vs street $0.26), Rogers Communications ($1.09 vs street $0.96), and CGI Group ($1.82 vs street $1.72) have beaten market expectations. Railroad Canadian Pacific reports after the close today.
US durable goods orders for March came in significantly stronger than expected (3.2% vs street 0.8%), a positive indicator about the health of the economy heading into tomorrow’s US Q1 GDP report (street 2.0% vs previous 2.6%).
Commodity trading is mixed today. WTI crude oil is down 0.6% while Copper is up 0.2%. Gold has climbed back up above $2,000/oz with a 0.2% gain.
European indices are struggling this morning with the FTSE down 0.4% and the Dax down 0.6%. The UK blocked Microsoft’s planned acquisition of video game producer Activision Blizzard (down 12.2% premarket) which may be weighing on sentiment there. The Euro and Pound are up 0.5%-0.7% today which may also be weighing on performance.
*Shares of Boeing, Microsoft, and Chipotle Mexican Grill are held in some portfolios managed by SIA Wealth Management. – By Colin Cieszynski, CFA, CMT, Chief
