We are seeing a rebound today after yesterdays declines across the globe. China was off about three quarters of a point on the US declines and the dollar weakness, however after the market close positive manufacturing numbers were released which should translate to higher markets there tomorrow. Japan was higher by about a third of a point.
Europe is stronger on the China news up about a half a point at midday however the Purchasing Managers Data there was weaker than expected.
US and Canadian futures are trading higher by about a third of a point regardless of the fact the Weekly Jobless Claims did not fall as far as expected. Key word here – fall, which they did to 350000 down 12000 from the previous week. Estimates were at 340000.
Gold is higher by about 7.00 to 1340. Oil continues the slide on supply strength to 96.20 down 0.66 and the loonie lower by about a quarter cent to 96.08. The US and Canadian 10 year bonds are marginally higher with yields falling to 2.48% and 2.41% respectively.
In mandate earnings, another beat this morning with Deluxe Corp beating on the bottom and top line with guidance of revenue growth in the 4% to 5% range and earnings about 5%. Altria also beat on both earnings and revenue and guided to a stronger 2014. CMS Energy, met earnings and revenue estimates.
So far, of the 178 S&P 500 companies to report 138 have beat, 8 have met and 32 have missed. This is a strong stat, however, the forward guidance has not been strong in many cases on either earnings growth or revenue growth.
On the positive side, Fed-Ex continues to report strong sales going into the holiday season with the stock as a solid barometer to economic conditions. Caterpillar on the other hand continues to flounder which is a proxy for the global mining industry which continues to show weakness.
|Kenneth A. Dick, BA, CIM, CFP, FCSI
Branch Manager & Portfolio Manager | Independent Wealth Management
Canaccord Genuity Wealth Management