Morning Minutes 5/14/2020

Morning Minutes

Stock Market Slide and Oil Rebound Continue Amid Mixed News

May 14, 2020

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

Equity markets have continued to pull back overnight and into this morning adding to yesterday’s losses. US Index futures are down 0.8%-1.0% with Dow Futures falling about 240 points as they continue yesterday’s 516-point retreat. European markets have also been under pressure this morning with the Dax falling 2.75% and the FTSE sliding 3.3%.

It appears that with earnings season over, investor focus has turned to the uncertain economic outlook. Initial enthusiasm about reopenings seems to be fading in the face of continued signs of struggle. This week’s US unemployment report was mixed. Weekly new jobless claims were 2.98 million last week, down from 3.17 million the week before but worst than the 2.5 million the street had expected. This brings the total claims since March 20 to 36.4 million. Continuing claims, however, were up slightly to 22.83 million less than the 25.10 million the street had feared, so it does appear that people are dropping off the unemployment rolls faster than expected, but the question is why? Are people going back to work, or still out of work but being classified differently?

Corporate news has also been mixed overnight. Communications equipment producer Cisco Systems beat expectations street on EPS ($0.79 vs street $0.69). On the other hand, 3M reported that its April 2020 sales fell by 11% compared with April 2019 with transportation down 20%, safety down 11%, and consumer down 5% offset slightly by 5% growth in health care sales.

Focus now turns to consumer spending with retail sales for China due tonight, followed by the US and Canada tomorrow morning.

New Video: Market Commentary and Portfolio Update – May 13, 2020

With Colin Cieszynski – Chief Market Strategist, and Jason Leesui, Vice President of SIA Wealth Management

A new webinar replay is available featuring Colin Cieszynski discussing current trends in world markets, and Jason Leesui continuing his series on Advisor Alpha and portfolio strategy. A PDF version of the presentation is available.

GoToMeeting Version: https://attendee.gotowebinar.com/recording/258195423901245698

YouTube Version: https://youtu.be/QpcANTlq7qM

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