April 14, 2020
At SIA Wealth Management everything we do is based on Relative Strength Analysis. We evaluate the Relative Strength between asset classes giving us insight into money flows on a large scale, and from this select top ranked investments.
Market Commentary By:
Colin Cieszynski, CFA, CMT
Chief Market Strategist
+1 (647) 282-4428
Stock markets around the world have been climbing overnight, boosted by better than expected trade figures out of China and news that in Europe, Italy and Spain are starting to ease some of their lockdown measures this week as coronavirus case growth subsides. China posted a $19.9B trade surplus for March, which was better than the $18.0B surplus the street had expected and Februaryâ€™s $71B deficit. Exports were down 6.6% which was less than the 15.0% decline investors had been expecting.
This positive news propelled Asia Pacific markets upward overnight, including a 3.1% gain for Tokyo and a 1.6% gain for Shanghai. China-sensitive copper is up 0.5%. European markets are mixed with the Dax up 1.0% and the FTSE down 0.75%. Gold has levelled off near $1,760/oz. Crude oil continues to struggle with WTI down 2.0% near $21.75/bbl and Brent down 0.9%.
In North America, US index futures are up this morning with Dow futures rising 265 points or 1.1% clawing back about two-thirds of yesterdayâ€™s 328-point, 1.4% decline. Earnings season has officially started today with mixed results. Some of the big themes this morning were strong personal product sales, big increases in loan loss provisions at big banks and no dividend cuts so far.
Johnson & Johnson beat the street on both sales ($20.7B vs street $19.4B) and earnings per share ($2.30 vs street $2.00) significantly. Pharmaceutical sales rose by 8.7% over year while personal product revenues increased by 9.2%. The company raised its dividend by 6.3% but cut its 2020 EPS guidance to $7.50-$7.90 from $8.95-$9.10.
JPMorgan Chase reported EPS of $0.78, well short of the $1.84 street estimate. The shortfall was mainly due to a $6.8B increase in loan loss provisions. Revenues were down only 3% relative to the 69% drop in net income and trading revenues popped 32% to $7.2B.
Wells Fargo reported EPS of $0.01, short of the $0.33 street estimate as the bank increased its loan loss provisions by $3.1B. Management noted that credit card fees were down 6% over year in the quarter.
SIA Wealth Update Webinar With Jeremy Fehr, Wednesday April 15, 2:00 pm EDT
Join Jeremy Fehr, Ted Bader and Paul Vendrinsky of SIA Wealth Management for an update on the current market and how that relates to SIA Wealth Management portfolios. Webinar audio will be available through computer VoIP or dial in using your phone.Â Click Here To Register
Starting today, webinar registration and replays can also be found in the new Webinars section of our website:
Disclaimer:Â SIA Wealth Management Inc. (SIAWM) specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investor’s investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable.Â SIAWM nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.