Morning Miniutes 4/24/2020

Morning Minutes

Mixed Markets Reflect Mixed News

April 24, 2020

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Market Commentary By:
Colin Cieszynski, CFA, CMT
Chief Market Strategist
ccieszynski@siawm.com
+1 (647) 282-4428

Market action around the world has been very mixed overnight as investors digest mixed corporate and economic news. First off, commodities have been climbing overnight. Crude oil is continuing to rebound with WTI up 3.6% trading near $17.00/bbl and Brent Crude up 2.2% as investors anticipate pending production cuts, while copper is up 0.50%. Gold is up 0.50% trading near $1,750 but other indicators of fear like the US Dollar, Japanese Yen and VIX Volatility Index are all flat to moderately lower.

Stock market activity has been very mixed. US index futures are up 0.4% to 0.7% with Dow Futures up 160 points adding to yesterday’s 39-point gain. Over in Europe, Frankfurt and London are down about 0.6% while Milan is up 0.2%. In Asia-Pacific trading, commodity-sensitive Australia rose 0.5%, while major indices in China, Japan and South Korea fell 0.6%-1.3%.

Investor indecision may be seen as a reflection of mixed news. The US congress passed another fiscal stimulus package yesterday, but a poor durable goods sales report for March, which fell 14.4% and was even worse than the 11.9% decline the street had expected, reminded investors that emergency stimulus efforts are being driven by very weak economic conditions.

Corporate news out of the US has also been mixed. A number of companies beat the street on earnings overnight including Verizon ($1.26 vs street $1.23), Intel ($1.45 vs street $1.28) and American Express ($1.98 vs street $1.69). On the other hand, American Express increased its credit provision to $2.6 billion, and warned of declining consumer spending in the back half of the quarter. Intel suspended full-year guidance, and Verizon cut its outlook. CNBC and other news agencies have also been reporting that retailer JC Penney has apparently been negotiating with potential lenders ahead of a possible bankruptcy filing.

 

New Video: Market Commentary and Portfolio Update – April 22, 2020

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

A new webinar video of Jeremy Fehr, founder of SIA Charts and SIA Wealth, discussing current trends in world markets, and Jason Leesui, Vice President of SIA Wealth discussing Advisor Alpha and portfolio strategy is now available. A PDF version of the presentation is available.

GoToMeeting Version: https://attendee.gotowebinar.com/recording/8264632388716317442

YouTube Version: https://youtu.be/GQQT–JJ_8c

 

Replay links and registration information for future webinars can also be found in the webinar section of the SIA Wealth Website.

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