Morning Minutes 5/11/2020

Morning Minutes

Mixed Markets Digest Recent Events

May 11, 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

Coming off of a week that saw a flood of earnings and economic reports, today has been pretty quiet for business news. Given a chance to catch their breath and still uncertain about how the staged reopening of economies around the world may play out, world markets have been mixed to start the new week.

US index futures are down 0.75%-1.00% this morning with Dow futures down about 240 points, backing and filling some of last week’s gains and digesting Friday’s 455-point advance. Overseas, the Dax is down about 1.2%, the FTSE is down 0.4% but the Nikkei and Hang Seng gained 1.0% and 1.5% respectively. Commodities are also mixed this morning with WTI crude oil up 2.5% and trading near $25.00/bbl, while Brent crude is up 0.6% but copper is down 1.2%. Currency action continues to reflect improving investor confidence with haven assets like gold, the US Dollar and the Japanese Yen all falling this morning.

From earnings reports today Marriott is down 3.1% premarket after its EPS came in well below expectations ($0.26 vs street $0.80) but indicated business in China was starting to improve. Under Armour is down 7.3% premarket after losing more than expected (-$0.34 vs street -$0.19) as sales fell 25% in Q1.

Looking ahead, earnings reports this week are dominated by smaller companies with the headliners for big caps being Cisco Systems Wednesday and Canadian Tire Thursday. Earnings from US retailers don’t really get started until next week. The biggest economic reports of the week don’t come out until Thursday night and Friday morning when retail sales reports for the US, Canada and China are due.


New Video: Market Commentary and Portfolio Update – May 6, 2020

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

A new webinar replay is available featuring Jeremy Fehr, founder of SIACharts and SIA Wealth, discussing current trends in world markets. Paul Vendrinsky, Portfolio Manager, discusses recent transactions and updated sector weightings in the five funds which SIA Wealth sub-advises on for BMO Global Asset Management. SIA Wealth President Ted Bader discusses investment strategies related to the portfolios that SIA Wealth Management sub-advises for BMO Global Asset Management. A PDF version of the presentation is available.

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