Morning Minutes 6/18/2020

Morning Minutes

Stocks Slide As US Jobless Claims Miss Offsets Positive Developments

June 18, 2020

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Market Commentary By:
Colin Cieszynski, CFA, CMT
Chief Market Strategist
+1 (647) 282-4428

It has been a pretty light evening and morning for corporate and economic news. The main event has been the announcement of £100B in new asset purchased from the Bank of England, which had been widely anticipated. In the US, grocer Kroger beat the street on earnings ($1.22 vs street $1.09). Also overnight there have been reports that the recent COVID-19 outbreak in Beijing has been contained. In the US, the Philadelphia Fed manufacturing survey bounced back dramatically (27.5 vs street -23.0 and previous -43.1).

These positive developments have been overshadowed, however, by this week’s US jobless claims report which came in worse than expected raising questions about the strength of the reopening recovery and perhaps recognition that political, societal and economic turmoil has had more lasting effects. US initial jobless claims were 1.508 million, similar to the 1.566 million claims of the week before and worse than the 1.300 million claims the street had expected. Continuing claims still refuse to drop below 20 million, coming in at 20.544 million which was more than the 19.800 million street estimate.

Looking ahead, earnings reports are due from Cineplex and Empire Company in Canada today, while tomorrow brings retail sales reports for Canada and the UK.

New Video: Market Commentary and Portfolio Update – June 17, 2020

With Ted Bader-President, and Colin Cieszynski – Chief Market Strategist, of SIA Wealth Management

A new webinar replay is available featuring Ted Bader updating on the recent performance of SIA Wealth Managed portfolios, plus Colin Cieszynski discussing current trends in world markets. A PDF version of this presentation is available.

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