Daily Market Commentary

January 24, 2023

Bonds & Stocks
Stocks fell after their best two-day rally since November, with traders sifting through a batch of corporate earnings for clues on the outlook for Corporate America amid growing concern of a recession. Just hours away from the start of tech earnings season, a few bellwethers from other industries reported their quarterly numbers. 3M Co. said it plans to cut 2,500 jobs and forecasting profit that fell short of Wall Street estimates. Railroad Union Pacific Corp. reported disappointing earnings and Verizon Communications Inc.'s profit outlook trailed analyst estimates amid mobile woes.

Economy
Brazil's and Mexico's consumer prices rose more than expected in the first weeks of the year, highlighting challenges facing policymakers as they work to bring inflation back to their targets. Official data released Tuesday showed Brazil's prices rising 0.55% in mid-January from the month prior, above analysts 0.51% median estimate. Mexico's inflation stood at 0.46% during the same period, above the 0.39% forecast, while the closely-watched core reading also rose past projections.

World
Oil fluctuated in a tight range as traders awaited fresh signals on the state of Chinese crude demand after the nation ditched Covid curbs. West Texas Intermediate for March delivery traded below $82 a barrel after swinging between gains and losses Monday. Oil has been driven higher over the past two weeks on expectations that the swift pivot in the world's largest crude importer may spur daily consumption to hit a record in 2023 as mobility and industrial activity pick up.

The information represented herein was obtained from various sources, which we believe to be reliable. Neither the information presented nor opinions expressed constitutes an offer to buy or sell any security. And it is not intended to guide the investor on which securities to buy, or when to buy or sell.

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