Banks Beat Estimates

Author

Faro Capital
April 17, 2023

Good Morning,

U.S. stocks ended lower on Friday due to fears of another rate hike by the Federal Reserve. The University of Michigan consumer sentiment report rose to 63.5, beating expectations. The earnings reports of JP Morgan, Wells Fargo, and Citi were better than expected, leading to a rise in bank stocks. On the retail front U.S. retail sales dropped more than expected, showing a slowing economy. This week eyes will be on company earnings that come out this week.

Canadian stocks closed a little higher on Friday, due to support from the oil and financial sectors. Canadian bank stocks surged after positive earnings from U.S banks like JP Morgan.

Brazilian stocks dropped on Friday with the Ibovespa finishing negative on Friday. The Ibovespa fell for two days but managed a hit a weekly gain. President Lula is in China visiting president Xi to sign nearly 20 bilateral cooperation agreements to spur trade between their respective countries.

Argentina’s monthly inflation rate rose 7.7%, passing expectations. El Salvador’s inflation hit a 17-month low of 6.06% in March. Uruguay’s manufacturing production rise 1% in February.

Markets: Before the Open

Top News Stories

Canada

  • Manufacturing sales down 3.6% in February (BNN)

  • Loblaw to spend $1.5B to expand business in Canada (RT)

  • Olymel to close Quebec hog plant, laying of 994 workers (RT)

U.S.

  • Best Buy to layoff store employees to focus on Ecommerce (CNBC)

  • Walmart sold Bonobos for $75M (CNBC)

  • Elon Musk is planning an A.I. startup to compete against OpenAI (CNBC)

  • Merck to buy Prometheus Biosciences for $10.8B (WSJ)

  • U.S. retail spending dropped in March (WSJ)

Argentina

  • The IMF with other institutions pledge $950M to lend to Argentina (BAT)

  • Inflation hits 104% year over year (BAT)

  • Saudi Arabia’s state runned investment fund invests $500M in Argentina (BAT)

Bolivia

  • A look at U.S. dollar scarcity in Bolivia (AP)

Brazil

  • Brazil proposes zero budget deficit in 2024 (RT)

  • Tourist visitors increased 13.5% in 2022 (RIO)

  • Brazil is expecting a record agricultural harvest of 299.7M tons in 2023 (RIO)

Colombia

  • Colombia looks to issue green bonds before year end 2023, payments would be in dollars (RT)

  • WeWork and Rappi announced a strategic partnership, increasing incentives for Rappi users (PORT)

Costa Rica

  • In Huetar Norte where 50% of pineapples are produced, farmers are worried of a massive bug outbreak killing crops (LAN)

Dominican Republic

  • Industrial manufacturing sector received 15.4% of loans given out in the banking sector in 2022 (ELD)

Peru

  • Peruvian GDP dropped 0.63% in February, beats expectations (RT)

Mexico

  • Banxico is making an app focusing on finding tailored financial products easier (ELF)

  • The price of eggs in Mexico rose 20% in one year (ELF)

  • The economy of the state of Puebla is projected to grow 7.5% this year (MIL)

  • Milk prices rise 28% in three years (MIL)

Insights

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DISCLAIMER: The writing above is not financial advice or solicitation to buy/trade any financial product/security. This newsletter is for educational purposes only. Any action/decision made by any reader is done by their own accord. Financial markets are full of risk so please be careful.