Morning Minutes 4/16/2020

Morning Minutes

Stocks Rebound With Earnings and Employment in Focus

April 16, 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
ccieszynski@siawm.com
+1 (647) 282-4428

Stock markets around the world have regained their footing this morning. Downward momentum slowed overnight from yesterday’s 1.9% decline for the Dow to a 1.3% slide for the Nikkei. Markets have turned back upward this morning. In Europe, the Dax is up 1.0% and the FTSE is up 0.5%. US index futures are up 0.4% to 0.8% this morning with Dow futures rising 95 points as they start to claw back some of yesterday’s 445-point drop. Energy markets are bouncing back with WTI up 1.75% and back above $20.00/bbl, while Brent is up 3.8% near $28.75. Gold is up 0.8% near $1,755/oz

US weekly unemployment numbers are mixed this morning. Weekly initial jobless claims last week were 5.2 million, slightly more than the 5.1 million the street was expecting, bringing the total initial claims of the last four weeks to 17.3 million. Continuing claims of 11.9 million, were less/better than the 13.5 million the street had been expecting. US housing starts fell by 22.3% in March to an annualized rate of 1.21M down from 1.56M in February and below the 1.30M street estimate.

Earnings season continues this morning with mixed to positive news. Costco announced a surprise 7.7% dividend increase. Companies beating expectations on earnings include: Blackrock ($6.60 vs street $6.36, but down 23% over year), Abbott Labs ($0.65 vs street $0.58), Bank of NY Mellon ($1.05 vs street $0.88) plus Bed,Bath and Beyond ($0.38 vs street $0.20). Morgan Stanley was the biggest disappointment of the day ($1.01 vs street $1.14).

Tonight brings more economic news from China. Q1 GDP is widely expected to show a 9.9% percent decline from Q4. Meanwhile retail sales and industrial production for March are expected to be down 10.0% and 7.3% respectively. In comparison, Statistics Canada reported yesterday that flash Canadian GDP fell by about 2.6% in Q1 including a drop of about 9.0% in March.

 

New Video: Market Commentary and Portfolio Update – April 8, 2020

With Jeremy Fehr – Founder and CEO, Paul Vendrinsky – Portfolio Manager and Ted Bader – President of SIA Wealth Management

The replay of a new webinar of Jeremy Fehr, founder of SIACharts and SIA Wealth, discussing current trends in world markets and capital flows and SIA Wealth President Ted Bader discussing investment strategies related to the portfolios that SIA Wealth Management sub-advises for BMO Global Asset Management is now available in three places. A PDF version of the presentation is available.

New Webinar Section of the SIA Wealth Website: https://www.siawealth.com/webinars/

GoToMeeting Replay: https://attendee.gotowebinar.com/recording/3495181844710419457

YouTube Replay: https://youtu.be/ccG4gMR1BZ0

Disclaimer: 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. 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.