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Before Bell: What every Canadian investor should know today



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US stock futures were up early on Wednesday, amplified by sharp benefits from Boeing and Apple at the end of their latest quarterly results. Markets also closely monitor trade and monetary policy with talks with the US and China that will continue in Washington and the Federal Reserve, which will make their next assessment decision this afternoon. World reserves climbed to the MSCI price index, a 0.08 percent increase before the opening of North America. On Bay Street, futures were positive with the advances in oil prices due to the conflicting forces of US sanctions on Venezuela and the weakening global economy.

"The deteriorating Sino-US trade relations and the overwhelming interest of the Federal Reserve were two of the most prominent reasons for sales in the last quarter of last year, so it's no surprise that much attention will be paid to these events," OANDA analyst Craig Ehrmann said in wound note. "Markets have returned from the fourth quarterly decline, but they are still not fully recovered and so confidence remains very sensitive to development in both areas."

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The decision of the Bank is due at 2 am. (ET). The central bank is not expected to increase rates, but Mr Erlham says he expects questions about the quantitative tightening when President Jerome Powell talks to the media at a press conference after a policy statement. Meanwhile, US and Chinese negotiators launched two-day talks in Washington, aimed at starting off a continuing trade war between the two countries. Talks come ahead before March 2, when the Trump administration is to increase its tariffs for Chinese imports from 200 to 200 billion US dollars from 10 to 25 percent.

On the corporate front, revenue also continues to dominate. The results are due to Boeing Co. and McDonald's Corp. before the start of trading. Upon completion, Facebook Inc., Microsoft Corp., Visa Inc. and Tesla all report on the latest results.

Boeing's shares jumped 5 percent before the start of the ring after the company manually exceeded Wall Street's forecasts, posting a $ 5.48 earnings share in the last quarter. Analysts expected an approximation of up to $ 4.57. Revenue for the three-month period also reached expectations of $ 28.3 billion.

In pre-trading, Apple Inc.'s shares rose more than 5 percent, after the company's latest results showed a tremendous benefit in the service business. However, Apple, which announced it is close to Tuesday, also said iPhone earnings dropped 15 percent year-on-year to 51.9 billion dollars. Apple also said it expects sales for the fiscal second quarter to be below Wall Street forecasts. Executive Director Tim Cooke said he cited economic weakness in China as a factor in that decline. For the fourth quarter, which ended in December, Apple's busiest part, due to sales of annual vacations, Apple reported revenue of $ 84.3 billion, just above the average of analysts of $ 84 billion. Apple posted earnings per share of $ 4.18 for the December quarter, compared with a Wall Street average estimate of $ 4.17, according to Refinitiv data.

Michael Hewson, chief market analyst for CMC Markets U.K., called the results a "mixed bag".

"The markets still felt that service numbers were a particularly bright spot with continued growth in that area, as well as much higher margins; however, even if the services continue to exceed, the average price for this area is still much lower than for devices and in no way will be compensated enough if iPhone sales continue to slow, given that iPhone sales account for 62% of their total revenue, "he said.

On the "Bay Street", Canadian national rail co-operations shares can see an action after the company increased its dividend by 18 percent. CN, which also announced after Tuesday's end, said it had earned $ 1.09 billion on a adjusted basis or $ 1.49 per diluted share, exceeding analysts' forecasts. Net income for the quarter fell 56 percent to $ 1.14 billion from $ 2.61 billion in the same quarter of the previous year. time last year. Revenues rose 16 percent year-on-year to $ 3.81 billion.

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Foreign European markets were mixed, as investors waited for the Fed's decision and the start of trade talks between the United States and China. Pan-European STOXX 600 was 0.18 percent. The British FTSE 100 added 1.28% in the morning trading. The German DAX fell 0.31 percent, while the French CAC 40 added 0.59 percent.

In Asia, Hang Seng in Hong Kong rose 0.40 percent, while the Shanghai index index rose 0.40 percent. The Japanese Nikkei ended with a session of 0.52 percent.

BIDS

Crude oil prices moved higher in the early stages in conditions of conflicts of US sanctions on Venezuelan exports and a slowing global economy. Today's crude oil surplus in Brent has so far been $ 61.04 for $ 61.94. The range of West Texas Intermediate is US $ 53.09 to US $ 53.80. Crude energy prices rose 2 percent on Tuesday after Washington announced sanctions on Venezuelan state oil company Petroleos de Venezuela SA.

"Oil prices are kept stable before the open USA, backed by supply cuts following US sanctions on the oil industry in Venezuela, but limited by worries about global growth," OANDA analyst Dean Popplevel said.

He said the announcement of US sanctions has led to some disruptions to oil pipeline refineries on the Gulf coast, although analysts generally believe the move will have limited impact on the market.

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"Before sanctions, Venezuela broke its crude oil from the top of + 2.5 million barrels per day in 2016 to +1 million barrels per day in 2018," he noted. "During the same time period, crude oil production in the United States increased by more than +2 million barrels per day only in 2018 to a record +11.9 million barrels per day."

In other commodities, gold prices were held near the eight-month high expectations that the Fed will maintain its key policy rate stable. Concerns about US and China trade ahead of recent talks have also helped boost investor interest in safe havens.

Gold gold rose 0.1 percent to $ 1,312.51 an ounce at the start of trading, after reaching $ 1,355.93, the highest since May 14, 2018, before the session. US gold futures climbed 0.2 percent to $ 1,311.50.

"In anticipation of open gold prices in the United States, at the level of eight months, backed by the blue-US trade concerns and the expectation that the Fed will stand today," Popplevel said.

Currencies and links

The Canadian dollar was larger and held near the high end of the day from 75.30 US cents to 75.59 US cents. There were no major Canadian economic issues due Wednesday, and broader markets would focus directly on the Federal Reserve's policy statement.

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Elsa Lignos, global head of RBC foreign exchange strategy, says markets expect the US central bank to change its language this time.

"With the entire FOMC giving the same message for a pause, there should be significant changes in the second position," she said. "More interesting will be something on the balance sheet. The most likely result is some signal of flexibility (there is certainly no autopilot), but it seems too early to signal a slower circle (the stronger the hints, the more risk-positive response will be be). "

Before the Fed's decision, the US Dollar Index was slightly changed to 95.8140.

In the global currency markets, the Australian dollar was one of the biggest winners of the day, rising more than half the dollar against higher inflation figures, causing some analysts to withdraw from interest rate cuts this year.

"In the larger scheme of operations, the data triggered a certain degree of stabilization in interest rates expectations, which helps Aussie," said Manuel Oliverie, a currency strategist at Credit Agricole in London.

Elsewhere, the euro was mostly flat against the US dollar in the amount of 1.1433 dollars, not far from the three-month high of $ 1.1570 earlier in January.

In bonds, the yield on the 10-year US note was 2.72 percent higher. The yield on the 30-year note was also higher in 3,043 percent.

Shares placed to see action

Based in Montreal CGI Group Inc. announced earnings per share of $ 1.12, excluding one-off items, citing analysts' forecasts that called for earnings of $ 1.11. Earnings in the first quarter rose 5.6 percent to $ 2.96 billion. Markets expected revenues of $ 2.94 billion, according to Refinitiv IBES.

Canfor Corp. says it will temporarily reduce the operations of three BCs. sawmills for logging limitations on supply, log costs and current market conditions. The company says reductions will reduce production by about 40 million boards. Canfor says the Savannie sawmill will be reduced in six weeks, starting February 11. Meanwhile, pilots in Houston and McKenzie will be shortened one week in the first quarter.

McDonald's Corp. won quarterly sales calculations in the same store on Wednesday, powered by a strong international performance that again offset the weakness of the highly competitive United States fast food market. Global sales in stores opened at least 13 months rose 4.4 percent, at the top of the analyst's average estimate of 3.9 percent, according to IBES data from the Refinitive.

AT & T Inc. missed the fourth quarter of Wall Street for net new wireless subscribers who paid a monthly bill while the company struggled to attract customers to a saturated US phone. The second-largest US wireless operator by subscribers faces competition from companies such as T-Mobile US Inc. and Sprint Corp, which offer low-cost phone plans. AT & T received a figure of 134,000 telephone subscribers who pay a monthly bill, less than the estimates by analysts of 208,000 subscribers, according to research firm FactSet.

Royal Carpicus Ltd. reported quarterly revenue that exceeded Wall Street estimates that benefit from higher spending and demand for Caribbean cruises. The net income of the company increased to $ 320.5m or $ 1.50 per share, in the fourth quarter ended December 31, from $ 288m or $ 1.34 per share a year earlier.

E-Commerce giant Alibaba Group Holding Ltd.The three-month income rose at a slower pace in three years, as the impact of slowing China and the crippled Sino-US trade war kept buyers during the top-selling season. Alibaba, the second most valuable public company in Asia after Tencent, generated revenue from the third quarter of 117.28 billion yuan (17.47 billion dollars), compared with 83 billion yuan a year earlier. Net income rose 33 percent to 30.96 billion yuan.

Foxconn Technology Group is considering plans to create advanced liquid crystal display panels at the Wisconsin $ 10 billion campus and said it intends to hire mostly engineers and researchers rather than the production workforce originally promised, according to Reuters announcing the White House ceremony in The 2017 campus of 20 million square meters marked the largest greenfield investment by a foreign company in US history and was praised by President Donald Trump as proof of his ability to revive American production.

More reading:

Fun actions on Wednesday to watch

Economic News

Statistics Canada reported that the average weekly earnings of non-farm employees amounted to $ 1,012 in November, largely unchanged from a month earlier. Compared to 12 months earlier, revenues rose 2 percent.

US businesses added solid 213,000 jobs in January, private research revealed, a sign that partial disconnection of the United States and concerns of a trade war do not discourage companies from engaging more people. ADP on Wednesday said job losses fell in January from a robust 263,000 in December, revised slightly lower, according to the Associated Press

With Reuters and the Canadian press

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