May 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
Equity markets have continued to pull back overnight and into this morning adding to yesterdayâ€™s losses. US Index futures are down 0.8%-1.0% with Dow Futures falling about 240 points as they continue yesterdayâ€™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 weekâ€™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 â€“ May 13, 2020
With Colin Cieszynski â€“ 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
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.