Earnings season resumes today with mixed results United Parcel Service is down 7.8% in premarket trading after disappointing on earnings ($1.79 vs street $1.99), while General Motors* is up 4.9% premarket after beating the street ($3.06 vs street $2.71), GE Aerospace* is up 3.2% premarket on a positive earnings report ($1.20 vs street $0.99), and Danaher is up 7.6% premarket after exceeding expectations ($1.72 vs street $1.57). Investors stepping up to reward cyclical companies who beat expectations can be seen as a sign of investor confidence and improving market breadth.
Several senior companies report after the close today on both sides of the border including Alphabet, Tesla, Texas Instruments and Canadian National Railway. The economic calendar is quiet today with the main release being US existing home sales at 10:00 am EDT. Tomorrow brings a Bank of Canada interest rate decision, and Flash PMI reports from around the world.
The negative implications of soft Chinese economic numbers and a PBOC interest rate cut continue to drag on commodities. US Crude Oil is down 0.7% and Copper is down 0.8%. In contrast, Gold is up 0.6%.
There appears to be some capital rotation and profit taking within Cryptocurrencies as Ether ETFs make their trading debut in the US today. Ether is up 0.1% while Bitcoin is down 2.2%.
US index futures are flat this morning as markets digest yesterday’s US index gains of 0.3% for the Dow, 1.0% for the S&P 500 and 1.6% for the NASDAQ. In Europe today, the Dax is up 1.2% but the FTSE is flat.
*Shares of General Motors and GE Aerospace are held in portfolios managed by SIA Wealth Management.