Morning Minutes 6/25/2020

Morning Minutes

Mixed Markets Greet Mixed Durable Goods and Unemployment Data

June 25, 2020

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

As investors debate how to respond to rising coronavirus case counts in some regions and countries, and the prospects of a turbulent economic reopening process, trading action in stocks has been uneven. US markets appear to be heading for another morning of declines with index futures pointing down 0.4%-1.0% after falling 2.25-2.75% yesterday. Overseas market action has been choppier. In Europe, Frankfurt and Paris have posted small gains while London is down 0.3%. Asia Pacific trading saw Shanghai gain 0.3% but Tokyo lose 1.2% and Sydney fall 2.5%. Commodities remain under pressure with WTI crude oil falling 1.8% and copper declining 0.5%.

It’s a busy morning for US economic news where results have also been uneven, Durable goods orders bounced back more strongly than expected in May (15.8% vs street 10.9% and previous -18.1%). Employment numbers were mixed. Initial jobless claims were 1.48M last week, more than the 1.30M the street was expecting but less than the previous week’s 1.54M. Continuing claims finally dropped under 20M, falling to 19.522M which was better than the 19.968 street estimate. Later today, results of US bank stress tests are due which could influence sentiment toward the financial sector heading into Friday.

Blackberry is down 8.5% in premarket trading this morning. Although the company reported adjusted EPS of $0.02, a $1.14 per share GAAP loss, mainly dur to a $594M writedown of goodwill related to the Blackberry Spark cybersecurity business appears to be weighing on the shares today.

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