Morning Minutes

Stocks Slip as Investors Await Bank and Retailer Earnings

Instructor helping intern to start working laptop. Man and woman in casual sitting and standing at desk and using laptop. Internship concept
Instructor helping intern to start working laptop. Man and woman in casual sitting and standing at desk and using laptop. Internship concept



Stock markets around the world are backsliding this morning. NASDAQ futures are down 1.35%, while Dow futures are down 0.6%. Overseas, the Dax and FTSE are both down 0.7%, while Hong Kong and Shanghai fell 1.0%-1.4%. On a quiet day for business news, weakening prospects of more cheap money stimulus appear to be dragging on sentiment. Overnight the People’s Bank of China maintained its benchmark interest rate, while in the US, traded rates continue to rise with the 10-year treasury note yield advancing toward 1.40%.

Commodity markets, meanwhile, are mixed today. Natural gas is down 4.2% as the recent cold snap in the deep south fades, easing heating demand, and supply comes back after being impacted by recent storms. WTI Crude oil, on the other hand, is up 1.0%. Metals are also mixed today with copper, gold and silver up 1.0%-1.2%, while platinum is down 1.0%.  

It’s the last big week for earnings this quarter. In Canada, its bank earnings week which investors may look to for indications of how badly Canada’s economy has been impacted by the recent wave of lockdowns that have already hit Canadian employment and retail sales figures. In addition to earnings and commentary, the direction of loan loss provisions may also attract attention from the street.  Bank of Montreal and Bank of Nova Scotia kick things off Tuesday, followed by Royal Bank and National Bank Wednesday, finishing off with TD Bank and CIBC on Thursday.

In the US, its retailer earnings week. Walmart started off proceedings last week with mixed results and overall, investors stateside may be looking to weigh both recent lockdown-impacted results against online sales and for indications of momentum. Can retailers who did well in 2020 keep things going or could their growth slow? On the other hand, are retailers who struggled but survived 2020 poised for a rebound in 2021? Some of the bigger names reporting this week include Home Depot and Macys on Tuesday, Lowes on Wednesday, plus Best Buy and Wayfair on Thursday.

Other companies scheduled to report this week include: Thomson Reuters on Tuesday; Nvidia, Bausch Health*, TC Pipelines and Canfor Wednesday; followed by AirBnB, Moderna and Loblaws Thursday.  

*Shares of Bausch Health are held in some portfolios managed by SIA Wealth Management

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Colin Cieszynski, Chief Market Strategist

Colin Cieszynski, CFA, CMT
Chief Market Strategist
+1 (647) 282-4428

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