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).
