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US Earnings Reports Remain Mostly Positive

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US index futures are up marginally this morning as indices consolidate yesterday’s 0.8% to 0.9% gains for the big three US indices and a 1.8% gain for the Russell 2000. Overseas, the Dax is up 0.9% while the FTSE is flat. Commodities are up this morning with WTI crude oil gaining 0.6% and copper climbing 1.0%. A 0.5% decline for gold and the US 10-year treasury note yield holding above 1.25% suggests that capital has stopped flowing into defensive havens.

US earnings are in focus again this morning. Confirming recent weakness in the Dow Transports, two of America’s largest airlines reported mixed results this morning: Southwest missed expectations on earnings but beat on revenues (loss per share -$0.35 vs street -$0.23, sales $4.01B vs street $3.93B), while American beat the street on earnings and sales (loss per share -$1.69 vs street -$2.03, sales  $7.48B vs street $7.32B).

Results from companies in other sectors were more uniformly above expectations including AT&T ($0.89 vs street $0.79), Whirlpool ($6.64 vs street $5.90), and Texas Instruments ($2.05 vs street $1.83).

This afternoon brings results from Intel, Union Pacific and Twitter, with Americah Express, Air Canada and Schlumberger headlining tomorrow morning’s results.

US weekly initial jobless claims were worse than expected (419K vs street 350K and previous 368K). US existing home sales are due at 10:00 am EDT (street 5.9M). Tomorrow morning brings flash PMI reports from around the world.

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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