Positive Earnings & A Pending Debt Deal

Author

Faro Capital
May 19, 2023

Good Morning,

U.S. stocks finished higher due to positive earnings and a resolution to the U.S. debt ceiling might be in sight. Netflix rose after reporting 5 million monthly users for its cheaper ad option. Walmart rose after beating estimate earnings and raising full-year guidance.

Canadian stocks finished mostly unchanged. The Bank of Mexico left its benchmark rate unchanged at 11.25%. Mexico inflation slowed to 6.25% in April and the labor market remains resilient. Argentina’s trade surplus was $126M vs $1.45B same period last year. Brazilian stocks ended slightly higher due to support from Petrobras and Vale performance. Brazil’s lower house voted yesterday to advance the government’s fiscal framework bill.

Markets: Before the Open

Top News Stories

Canada

  • Air Canada announced a code sharing partnership with Flydubai (BNN)

  • Flair Airlines is looking to cash in on possible WestJet strike (BNN)

  • Ottowa has appointed Mario Péloquin as the new CEO of Via Rail (BNN)

  • Constellation software reported revenues of $1.4B, up 34% from last year (BNN)

  • South Korean company to invest $4.5B to build a green hydrogen project in Canada (BNN)

  • Centerra Gold reported a $73.5M loss in Q1 (BNN)

U.S.

  • Target expects to lose $500M due to theft (CNBC)

  • Pfizer to raise $31B to acquire Seagen (CNBC)

  • The WWE & UFC merger company will be called TKO (CNBC)

  • Regional bank shares rose on Wednesday after Western Alliance reported deposit growth (RT)

  • Walmart raises full-year guidance, as earnings beat estimates (CNBC)

  • Lightspeed Commerce reported a $74.5M loss in Q1 earnings (BNN)

Argentina 

  • EU nears critical materials agreement with Argentina and Chile (BAT)

Brazil

  • Brazil green lights L’Oreal acquisition of Aesop (RT)

Colombia

  • Banco de la República made $2.2B in Q1 from U.S. Treasuries (PORT)

  • The construction industry saw a contraction of 3.1% in Q1 2023 (PORT)

  • Grupo Aval reported a $94M, a 37% increase from last year (ELT)

Dominican Republic

  • Remittances hit $3.3B in Q1 2023, a 2.7% increase from last year (ELD)

  • Banking sector activity grew 9.5% in Q1 2023 (ELD)

Ecuador 

  • President Lasso disbanded congress and what that might mean (RT)

Peru

  • Electroperú reported a profit of $128M in 2022 (ELC)

  • Distriluz reported a profit of $113M in 2022 (ELC)

Mexico

  • Kavak is looking to capture 5% of Colombia’s used car market (RT)

  • PEMEX to purchase Tuxpan storage facility for $320M (MB)

  • Private consumption & investment grew in Q1 2023 (MB)

  • Banxico keeps rates unchanged at 11.25% (ELE)

  • PEMEX buys a cement plant is Madrid to gain market share (ELE)

Insights

Check out my first edition of earnings review with my analysis of Banco Popular and FirstBank on my website.

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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.