Earnings results from North American corporations continue to exceed expectations. Companies which reported overnight include Tesla ($0.72 vs street $0.59, up 14.0% premarket), IBM ($2.30 vs street $2.22, down 3.1% premarket), Rogers Communications ($1.42 vs street $1.37), Lam Research ($0.68 vs street $0.81, up 5.3% premarket), UPS ($1.76 vs street $1.63 up 8.8% premarket), and KKR* ($1.38 vs street $1.20, up 3.0% premarket). Results from railroads Canadian Pacific ($0.99 vs street $1.00) and Union Pacific ($2.75 vs street $2.78, down 3.7% premarket) fell short of analyst estimates.
The generally positive response to overnight earnings has helped some US equities to bounce back particularly growth stocks. NASDAQ Futures are up 0.9% while S&P Futures are up 0.4% and Dow Futures are down 0.1%. This has enabled the NASDAQ to claw back much of yesterday’s 1.6% loss, and the S&P to retrace some of yesterday’s 0.9% loss. The Dow, however, looks to be adding to yesterday’s 1.0% loss.
Overseas trading has been mixed. In Europe, the Dax is up 0.7% and the FTSE is up 0.5%. The Hang Seng, however, fell by 1.3% overnight.
Energy and metal prices are climbing this morning. Gold is up 0.9%, Silver is up 1.2%, Copper and US Crude Oil are both up about 0.7%.
Flash PMI reports have been rolling out overnight. Results were mixed relative to expectations but the UK was most disappointing missing on both the Manufacturing and Service Sides. US S&P Flash Manufacturing (street 47.5) and Flash Service (street 55.0) PMI numbers are due at 9:45 am EDT. The US 10-year treasury note yield is sitting just below 4.25%. US initial weekly jobless claims came in better than expected (227K vs street 242K).
*Shares of KKR are held in portfolios managed by SIA Wealth Management.