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Strong Nonfarm Payrolls and Canada Jobs Reports Headline Morning News

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Stock market action from around the world has been mixed this morning. US index futures are up slightly with gains of 0.1%-0.2%. In Europe, the Dax is up 0.1% while the FTSE is up 0.4%, benefitting from its currency getting pounded for a second straight day after the Bank of England surprised investors by staying dovish. Asia Pacific markets declined with the Hang Seng falling 1.4% and the Nikkei dropping 0.6%. Commodities are also mixed. WTI crude oil is up 0.7% after OPEC+ refused to cave in to US pressure and maintained its current production restoration plan of 400K bbl/d per month, but natural gas is down 1.0% and copper is steady.

US nonfarm payrolls were very strong, beating the street even after a big upward revision to last month’s report (531K vs street 425K, previous revised up to 312K from 194K). Average hourly earnings indicated wage inflation continues to increase (4.9% vs street 4.8% and previous 4.6%). In Canada job creation slowed but was still better than expected (31K  vs street 19K and previous 157K).   Canada Ivey PMI is due at 10:00 am today (street 62.7 vs previous 70.4). Overall the job reports were indicative of a robust economy and a healthy job market.

Earnings reports have sparked significant swings in both directions today. Companies that beat expectations include Canada Goose (+$0.10 vs street -$0.12, up 10.7% premarket), AirBnB ($1.22 vs street $0.75, up 5.3% premarket), Telus ($0.25 vs street $0.24), and Expedia  ($3.53 vs street $1.65, up 14.8% premarket). Companies that disappointed investors include Peloton (-$1.21 vs street -$1.07, down 31.4% premarket), Magna International ($0.56 vs street $0.60 due to auto chip shortage), and Uber (-$1.28 vs street -$0.33).     

Disclaimer: 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. SIAWM 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.

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At SIA Wealth Management everything we do is based on Relative Strength Analysis. We evaluate the Relative Strength between asset classes giving us insight into money flows on a large scale, and from this select top ranked investments.

Colin Cieszynski, Chief Market Strategist
Market Commentary:

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

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