May 20, 2020
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Market Commentary By:
Colin Cieszynski, CFA, CMT
Chief Market Strategist
+1 (647) 282-4428
The price of crude oil is climbing again this morning with WTI up 2.3% trading near $32.50/bbl and Brent crude up 2.5%, trading near $35.50/bbl. Last night API reported a 4.8 mmbbl drop in its US weekly oil inventories, the first decline since the week of March 20. DOE weekly US oil inventories are due at 10:30 am EDT today with the street expecting a 1.1 mmbbl increase following a 0.75 mmbbl decrease.
US index futures are up 1.2%-1.5% this morning, shrugging off yesterdayâ€™s declines for US indices which varied between 0.6% for the NASDAQ and 1.6% for the Dow. Dow futures are currently up about 315 points.
Earnings reports from US retailers are mixed again this morning with weakness in discretionary products offset by growth in discount, online, staples and home improvement retailing. Highlights include:
Lowes reported scorching same store sales growth (11.2% vs street 3.3%) which helped to boost EPS above expectations ($1.77 vs street $1.32).
Target* reported same store sales growth of 10.8%, above the 7.5% street estimate, and EPS of $0.59 which came in above the $0.40 investors were expecting. Online sales increased by 141%, but management also noted that its costs have increased between more spending on store cleaning, online order shipping, and higher wages for employees.
Urban Outfitters, on the other hand, saw its same store sales plunge 28% and management indicated same store sales could be down 60% in the current quarter. The company posted a loss per share of $1.41, which was worse than the $0.29 loss investors were expecting.
*Shares of Target are held in some portfolios managed by SIA Wealth Management.
SIA Wealth Update Webinar Wednesday May 20 at 2:00 pm EDT
Join Colin Cieszynski, Ted Bader and Paul Vendrinsky of SIA Wealth Management for an update on the current market and how that relates to SIA Wealth Management portfolios. Webinar audio will be available through computer VoIP or dial in using your phone.
Registration information and replays can also be found in the webinar section of the SIA Wealth Website
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