Morning Minutes

Strong Earnings Boost US Indices; Canadian Bank Earnings Disappoint Again




Boosted by its Data Center division, which produces chips that support cloud computing and Artificial Intelligence applications, Nvidia beat street expectations on EPS ($1.09 vs street $0.92) and especially sales guidance ($11.0B vs street $7.1B), by wide margins, sparking an aftermarket rally that has extended into premarket trading this morning where the shares are currently trading up 25.8%. Meanwhile, Best Buy is up 4.9% premarket after beating earnings expectations as well ($1.15 vs street $1.10). Costco reports results after the close.

In Canada, bank earnings have continued to generally disappoint with Royal Bank ($2.65 vs street $2.79) and TD Bank ($1.94 vs street $2.08) coming in below expectations, although CIBC did manage to beat the street ($1.70 vs street $1.63, up 3.8% premarket). All three banks announced significant increases to their provisions for credit losses, but on the positive side, CIBC and RBC made it 4 out of 5 big banks raising dividends this quarter.

NASDAQ futures are up 2.2% this morning, while S&P futures are up 0.75%. Dow Futures, the Dax and the FTSE are soft, however, trading flat to down 0.25%. Commodity action is mixed this morning, with WTI Crude Oil down 1.9% and copper up 1.0%. Gold is holding steady near $1,960/oz.  

US economic data has been mostly positive this morning with Q2 GDP being revised upward (1.3% vs street 1.1%) and jobless claims beating expectations (229K vs street 245K). Quarterly PCE inflation was slightly worse than expected (5.0% vs street 4.9%). Ahead of the US long weekend, durable goods orders and monthly PCE inflation are due tomorrow morning.

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Colin Cieszynski, Chief Market Strategist

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

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