Morning Minutes

Toymakers Tumble, US GDP Blows By Estimates, ECB Pauses on Rates




US index futures are down 0.3%-0.9% this morning with the NASDAQ leading the way downward again, adding to yesterday’s US index losses of 0.3%-2.4% as investors continue to digest a flood of earnings reports, economic data and other corporate and geopolitical developments. The 10-year US treasury note yield is on the rise again, trading near 4.95%. Crude Oil has been hit hard this morning with US and Brent down 3.0% and 2.6% respectively.

Today’s US economic news has been mixed. On the positive side, Q3 GDP (4.9% vs street 4.2% and previous 2.1%) and US durable goods orders (4.7% vs street 1.5%) crushed expectations. US inflation, in the form of the price component of GDP, however, accelerated upward more than expected in Q3 as well (3.5% vs street 2.5% and previous 1.7%). Meanwhile, the European Central Bank paused its interest rate hiking program following a run of increases at ten consecutive meetings.   

Toymakers are getting hammered in premarket action this morning with Hasbro and Mattel plunging 11.4% and 10.8% respectively. Although the success of the Barbie movie helped Mattel to beat the street ($1.08 vs street $0.86), a big miss from Hasbro ($1.64 vs street $1.72) has weighed on sector sentiment.

The market reaction to other earnings headliners overnight and this morning has been tepid to negative with notable companies reporting including Canadian Pacific ($0.92 vs street $0.91), Meta Platforms ($4.39 vs street $3.64, down 4.0% premarket), IBM ($2.20 vs street $2.12), Merck ($2.13 vs street $1.95), and UPS ($1.57 vs street $1.52). headlines results due after the close today.

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Colin Cieszynski, Chief Market Strategist

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

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