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Before Bell: What every Canadian investor should know today


Wall Street's futures changed little early on Thursday, while world reserves set the best since January, pointing to a record after the Federal Reserve proposed patients' access to future rate increases. Abroad, European markets were positive at a mixed start, following a report that shows that the sale of German retailers has announced its biggest monthly decline for more than a decade. In Asia, the Fed's rally helped consolidate stocks in China and Japan, although the poor reading about Chinese factory activity was measured by feelings. At Bay Street, futures were tougher with higher gold prices, while oil held steadily.

The entire index of MSCI, which follows shares in 47 countries, increased by 0.5 percent. For the month, the index is more than 7 percent, the biggest January profit after the index that began in 1988 and the best monthly showing since December 2015, according to Reuters. On Wednesday, the Federal Reserve had stable interest rates, as expected, but also paused in its current campaign to raise prices, giving up the promise of a gradual increase in the future. The message helped to slide down more than 25,000 and lead to a profit of 1.5 percent on S & P

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"At the end of last year, the markets became anxious because the Fed was on the verge of a major political mistake, remaining on its pedestrian path, despite growing signs of weakness in the global economy," said Jasper Loller, head of research for London Capital Group said. "As a result, stock markets have fallen to a large extent fearing that higher borrowing costs will damage the economy at a time when global growth has also slowed down."

On Thursday, earnings and the economy will be at the forefront.

On Bay Street, investors got reading about the state of the economy of Canada. Statistics Canada said GDP fell by 0.1 percent in November, partly neutralizing the October rise of 0.3 percent. The November decline was in line with market expectations. The report will be released later in the day, with remarks by Canadian Bank Deputy Governor Caroline Wilkins, who will speak at the Toronto Trade Committee at 12:45 pm. (ET).

"The key factor is expected to be the Canada Post strike, which will close the various postal facilities on a rotating basis during the month," said RBC chief economist Paul Ferley on the expectations for the November report. "Given the interruption of the postal strike, we assume that [about a] A 1% drop in the production of a warehouse that will only account for about half of the total GDP drop we expect. "

The revenue, the results of the online retail giant Inc. report after the end of trading. In anticipation of the opening, revenues are due to companies, including Mastercard Inc. and General Electric Co., among others. GE's shares jumped 10 percent after the company released quarterly revenue of $ 33.3 billion, emphasizing Wall Street forecasts. GE also said it has reached $ 1.5 billion in line with the US Department of Justice's investigation of accounting practices.

In previous action, shares of Facebook Inc. were more than 11.35 percent after the social media company posted a record profit. After a year of controversy, Facebook said revenues rose 30 percent in the fourth quarter of 2018, compared with the last three months of 2017 to $ 16.91 billion. Profit rose 61 percent to $ 6.88 billion, while the diluted earnings reached $ 2.38 and beat analysts' expectations. Facebook also said it has added one million new daily active users to Canada and the United States, and four million in Europe.

Meanwhile, the shares of Tesla Inc. fell by nearly 5 percent after the company missed Wall Street's profit targets and announced the departure of its chief financial officer. Except for the objects, Tesla earned $ 1.99 per share, missing expectations of $ 2.20 per share, according to IBES data from Refinitiv. However, Tesla also pledged profits in every quarter this year.

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Abroad, the pan-European STOXX 600 increased by 0.06 percent. Unilever JSC shares fell by about 3 percent in the morning after the consumer goods company announced lower than expected sales in the last quarter. UK FTSE 100 was about 0.60 percent. German DAX added 0.06 percent. France CAC 40 increased by 0.24 percent.

In Asia, the Japanese Nikkei added 1.06 percent. The wider Topix gained 1.08 percent of shares of Softbank Group, which reached almost 5 percent. Hang Seng in Hong Kong rose 1.08 percent. The Shanghai Composite Index received 0.35 percent.


Oil prices were stable at the outset, with a slight increase from the US raw material forecast and the expected impact of US sanctions on Venezuelan production. Western Texas Middle has a daily range of $ 53.92 to $ 54.69. The crude oil Brent crude is $ 61.57 for $ 62.28.

"The oil market is pushed higher at the expense of the US imposed sanction on Venezuela," said David Medden, a market analyst for CMC Markets U.K. "The South American country has seen a significant reduction in oil production over the past 20 years, but prospects for tighter supplies have fueled traders to increase relatively cheap energy."

Also, he said, in the U. S. the Energy Information Administration showed a weekly increase in oil reserves of 919,000 barrels, while gasoline inventories fell more than 2.23 million barrels. Merchants expect that raw goods will grow by 1.8 million barrels.

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In other products, gold prices were higher and looked at the fourth monthly increase after today's announcement of the Fed. Gold spot rose 0.2 percent to $ 1,322.26 per ounce. Prices rose to the highest level since May 11 to 1,323.34 US dollars on Wednesday. US gold futures rose nearly 1 percent to $ 1,322. The gold deposit is about 3.1 percent this month. Drop in the US dollar after the Fed said it would pause on jumping rates also helped strengthen gold at the helm on Thursday.

"The weaker dollar once again provides a gold case for gold, which pushes for $ 1,320," OANDA analyst Craig Ermam said. "This comes just days after breaking over $ 1,300 after numerous efforts to do so since the beginning of the year."

He said that if gold disrupted $ 1,320, then $ 1,340 would become the next significant level of resistance, "which may prove temporary if traders continue to hold on to the green loan."

Currencies and links

The Canadian dollar was up, but it was disconnected from its heels after the Statscan report showed that the Canadian economy fell by 0.1 percent in November. Lions moved to the center of the day from 76.01 US cents to 76.21 US cents after the release of the report. The fall was in line with market expectations and followed an increase of 0.3 percent in October. Oil prices and weaker green light have been played in recent moon power, according to which the Canadian dollar led the package against gains against the greenback this month, according to Reuters.

"October now looks like an island in the storm for the Canadian economy, since November has returned to the weaknesses," said CIBC chief economist Every Schönfeld, noting that the Bank of Canada, as the Fed, now seems to be waiting for the next few quarters.

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"Real GDP fell 0.1 percent to our forecast, but now it joins a flat period for August-September to commemorate three of the last four months in which performance was weak."

Overnight, the US Dollar Index reached a three-week minimum of 95.16.

For the lunar, the key event for the lunar will be the morning edition of the GDP report for November. Mr Cole says the RBC expects a monthly decline of 0.1 percent after the October gain of 0.3 percent. The impact of a Canadian Mail strike in November should divert attention by 0.1 percentage points of growth. Smaller wholesales and sales of production during the month are also likely to weigh, he said. At present, RBC looks for annual fourth quarter growth of around 1.1 percent "with an insignificant risk of falling."

In bonds, the US Treasury revenue fell to the Fed's cautious remark. The yield of the 10-year-old US notebook was lower at 2,665 percent. The yield on the 30-year note was also lower by 3,022 percent.

Shares placed to see action

Baker Hughes, General Electric Co., the Oil Field Service, announced an increase of 85 percent in adjusted quarterly profits on Thursday, fueled by a surge in demand for its oilfields. The company posted a adjusted net income of $ 120 million or 26 US cents per share, in the fourth quarter that ended December 31, at $ 65 million or 15 US cents a share, a year earlier.

Mastercard Inc. announced a 33% increase in adjusted quarterly profits, as it processed more transactions during the holiday shopping season. The adjusted net income rose to $ 1.6 billion or $ 1.55 per share, in the fourth quarter ended December 31, at $ 1.2 billion or $ 1.14 per share a year earlier. Net income rose to $ 3.8 billion from $ 3.3 billion a year ago. Shares rose nearly 4% in the previous market.

Charter Communications Inc. on Thursday exceeded quarterly revenue estimates because the cable provider has attracted more users for its Internet services, thus compensating for the decline in subscribers to the video. The company added 289,000 residential Internet users in the fourth quarter that ended on December 31.

Royal Dutch Shell said it would stick to the spending discipline this year, after 2018 profits jumped by more than a third to 21.4 billion dollars, the highest since 2014. The Anglo-Dutch oil company also announced a massive increase in cash generation, with another sign that cost savings from 2014 drop in the oil market is filtered out in its operations. Its shares rose by more than 4 percent.

Unilever PLC announced Thursday's quarterly sales was lower than expected, hit by Argentina's inflation and a rise in flat growth in developed markets in the first set of results after New CEO Alan Jop claimed responsibility. Dove soap manufacturer and Ben & Jerry ice cream said the core sales in the fourth quarter rose 2.9 percent. Analysts, on average, expect 3.5 percent, showed a consensus forecast that the company showed.

Microsoft Corp.The azure cloud computing platform grew at a slower pace in December quarter compared to a year earlier. Azure, a leading cloud of Microsoft, had revenue growth of 76 percent in the last quarter of 2018, down from a 98 percent increase from the previous year. Microsoft's total revenue rose 12.3 percent to 32.47 billion US dollars. Wall Street analysts expected an average of $ 32.51 billion on average, according to IBE's data from the Refinitive. Microsoft announced its latest results after closing Wednesday. Shares were reduced by more than 2% in pre-sales trading.

U. S. chemical company DowDuPont Inc. forecasts a surprising drop in earnings for the current quarter, hit by a downturn in its largest unit, sending 9 percent of its shares to pre-trading. The company, set up with a $ 130 billion merger of chemical giants Dow Chemical and DuPont in September 2017, said it expects revenue from the first quarter to drop in "percentages in the middle of one digit" without giving detailed figures. Analysts expected DowDupont to report revenues of $ 22.63 billion for the first quarter, up 5 percent from the previous year.

Intel Corp. dubbed the interim chief executive Robert Swan as the permanent role on Thursday, also named a new interim chief financial officer. Mr Sven, 58, was temporarily accused of a chip maker from last June, when Brian Krzanich left the top job after the investigation showed he had a consensual relationship with an employee who violated the company's policy.

More reading:

Fourth drop of small drops to watch

Economic News

Canada's GDP fell by 0.1 percent in November.

Canadian producer prices fell 0.7 percent in December, and their second consecutive fall from the month of the month, thanks largely to cheaper energy and oil products, statistics released today Canada. Analysts in a Reuters poll predicted an increase of 0.2 percent in December following a fall of 0.8 percent in November. The cumulative two-month decline was the highest since June and July 2017, when prices fell by 1.1 percent and 1.4 percent, respectively.

The US Department of Labor reported that weekly demands for unemployment claims rose 53,000 last week to 253,000 from the 49-year-old minimum of 200,000 a week ago. The average average of four weeks, which is less variable, increased by 5,000 to 220,250, according to the Associated Press.

With Reuters and the Canadian press

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