Mixed Stock Performance & Debt Ceiling Showdown

Author

Faro Capital
May 12, 2023

Good Morning,

U.S. stocks ended mix with the S&P 500 and the Dow Jones finishing the day lower, while the Nasdaq finished positive. Investors were focused on new corporate earnings and the ongoing debt ceiling showdown in capital hill. PacWest reported that in the first week of May they saw deposit outflows and the stock dropped 22%. Disney lost more than 8% after losing subscribers in Q1.

Canadian stocks ended lower due to pressure from lower commodity prices dragging down stocks in the mining and energy sectors. Crude oil prices dropped as OPEC has unchanged demand projections.

Brazilian stocks closed higher, increasing gains to a six day stretch. Positive corporate earnings and future outlook are the reason for this.

Gold fell below $2,019 per oz. as the U.S. dollar made gold more expensive for foreign buyers.

Peru kept their key rate unchanged at 7.75%, with the country’s annual inflation dropping to 8.65%.

Markets: Before The Open

Top News Stories

Canada

  • Nutrien Q3 net earnings were $576M, down 58% vs last year (BNN)

  • WSP Global Q1 net earnings was C$112.5M, up 18.4% vs last year (BNN)

  • Manulife Financial reported Q1 net income of $1.4B under new accounting standards (BNN)

  • Brookfield Asset Mgmt reported Q1 profits of $516M (BNN)

  • Chrous Aviation Q1 earnings of C$32M, up 40% vs last year (BNN)

  • Hudson Bay cutting 250 jobs, totaling 500 job cuts so far this year (BNN)

  • Pet Valu reported lower Q1 profits vas last year, eyes 50 new stores this year (BNN)

  • Montreal home sales down 26% in April Y/Y, lowest April sales since 2000 (BNN)

U.S.

  • Carl Icahn’s company falls again after federal investigators seek info on company (CNBC)

  • Disney’s streaming losses narrow in Q1 (CNBC)

  • Ryanair order at least 150 Boeing 737 max planes (CNBC)

  • Lucid reported a loss per share of 43 cents in Q1 earnings (CNBC)

  • PacWest is hurting after reporting deposits fell 9.5% (CNBC)

  • Peloton drops after CPSC recall more than 2M bikes (CNBC)

  • The Senate holds first hearings on banking services for the cannabis industry (CNBC)

Argentina

  • Australian lithium miner Allkem LTD to acquire Livent Crop to create a $10.6B company (BAT)

  • Argentina has spent all its liquid intl reserves and another $1B while the country faces a currency collapse (BAT)

Brazil

  • Coffee export fell 10.3% in April (RIO)

  • Industrial production grew 1.1% in March (RIO)

  • The general price index saw a 1.01% deflation in April (RIO)

Bolivia

  • Bolivian president signals openness to use Yuan for trade (RT)

Colombia

  • The Ministry of State & Public Credit issued a $900B Peso TES bond auction (PORT)

  • The Vice President is on tour in Africa trying to grow business ties, less than 3% of exports go to Africa (PORT)

  • In February the public debt hit $187B, 54.5% of GDP, estimates show in 10 years it will double (PORT)

  • The labor reform has a potential to terminate 450K formal jobs (PORT)

  • Grupo Argos reported Q1 profits of $124M (PORT)

Dominican Republic

  • The first neobank in the country, Qik banco Digital, presented it service model (ELD)

  • Inflation decreased in April hitting 5.15% y/y (ELD)

  • Tax revenues in April were $1.36B (ELD)

Panama

  • Tocumen Airport processed 1.4M passengers in April (LAE)

Peru

  • Agricultural exports hit $2.26B in Q1 2023 (ELC)

  • Inflation in Lima touched 7.97% in April (ELC)

Mexico

  • Mexican airlines had a stellar Q1 (MB)

  • Mexico Pacific Limited to build an LNG plan in Sonora (MB)

  • Pemex refinery in Salina Cruz will not meet 2024 deadline to go online (MB)

  • Mexico & Brazil to eliminate tariffs on heavy trucking trade (MB)

Venezuela

  • Citgo, PDVSA’s America business segment reported Q1 net profit of $937M (RT)

  • U.S. Judge blocks six creditors from joining Citgo auction (RT)

Insights

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