Morning Minutes

UK PM Truss Resigns; Investors Digest Positive Earnings Reports




US index futures are up 0.1%-0.5% with Dow Futures leading the way today as US stocks rebound from yesterday’s downswing that saw major indices decline 0.3%-0.8%.

European markets have turned down in the last few minutes flipping from green to red on the news that embattled UK Prime Minister Liz Truss has resigned after about six weeks on the job in the wake of a failed mini-budget and market turmoil. Currently, the FTSE is down 0.1% and the Dax is down 0.2%.

Treasury yields continue to climb. The US 2 and 3-year yields touched 4.60% earlier this morning, while the 10 and 30-year yields continue to put 4.0% in their rear-view mirror, climbing above 4.10%. Despite rising yields, the US Dollar has backed off a bit in what so far appears to be a normal trading correction. Against the greenback today, Gold is up 0.5%, the Euro is up 0.4% and the Canadian Dollar is up 0.3%.  Commodities are also on the rebound today with WTI Crude Oil climbing 1.6%, Natural Gas rising 0.4% and Copper gaining 1.9%.

Tesla Motors is down 4.5% in premarket action following mixed results that saw EPS beat expectations ($1.05 vs street $0.99) but sales miss slightly ($21.4B vs street $21.9B). Other companies beating the street last night and this morning include American Airlines ($0.69 vs street $0.54), IBM ($1.81 vs street $1.79), and Danaher ($2.56 vs street $2.26). A couple of US regional banks and Union Pacific missed expectations slightly but overall, once again, results have been coming in better than expected. Later today, results are due from railroad CSX, plus miner Freeport, steelmaker Nucor, and social media provider Snap.

In economic news, US weekly jobless claims were better than expected (214K vs street 230K). The Philadelphia Fed Manufacturing Survey was even worse than feared (-8.7 vs street -5.0 and previous -9.9). US existing home sales are due at 10:00 am EDT. Tomorrow brings retail sales reports for Canada and the UK.

Subscribe to the Morning Minutes:

Today's earnings reports and market activity, delivered right to your inbox.

Colin Cieszynski, Chief Market Strategist

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

Read More

Legal and Regulatory Disclosures

Terms and Conditions:
This information is for Investment Advisors only. The website is for informational purposes only and is not intended to provide a complete description of SIA Wealth Management’s products or services. Past performance is not indicative of future results. It should not be construed as investment advice or relied upon in making an investment decision. Products and services of SIA Wealth Management are only offered in jurisdictions where they may be lawfully offered for sale. The information contained in this Website does not constitute an offer or solicitation by anyone to buy or sell any investment fund or other product, service or information to anyone in any jurisdiction in which an offer or solicitation is not authorized or cannot be legally made or to any person to whom it is unlawful to make an offer of solicitation. All products and services are subject to the terms of each and every applicable agreement. It is important to note that not all products, services and information are available in all jurisdictions outside Canada.

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. SIA Wealth Management Inc. 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.