August 15th 2022, 5:46:18 pm

(about 10 months ago)

Corporate earnings appear better than feared.

Share On

💯Corporate earnings appear better than feared.🔢

As the second quarter earnings report shows, North American companies are showing better than the disappointing results analysts expected. The latest corporate news pushed indices higher this week, with S&P 500 and Nasdaq adding 0.59% and 1.58%, respectively. Canada’s S&P/TSX added 0.44%. This is the second week of gain of US stocks. 

Giant companies like Tesla reported better than expected earnings reports, and Netflix"s subscription loss was not as devastating as anticipated. The reports could signify US companies’ resilience in the high inflation and interest rate environment. Elsewhere, analysts argue that markets are underestimating the next moves by the US central bank and the full effect of higher interest rates on the economy and equity markets.

In the Currency market, US and Canadian dollars remain strong currencies among G10 countries. Today, the US dollar strengthened again against Euro as Italy’s government is set to collapse.

Canadian inflation hit the highest level since 1983 of 8.1% year over year in June. This will put the Bank of Canada on the path to further interest rate hikes. On the higher rates, the US June existing home sale was weaker than expected, and mortgage applications fell to a 22-year