Morning Minutes 6/29/2020

Morning Minutes

Crosswinds Blow Into a Holiday-Shortened Week

June 29, 2020

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

Between the end of the month and quarter, the Canadian holiday Wednesday and the US holiday on Friday, and a number of key economic announcements on the way, it’s a bit of an odd week facing investors.

So far, equity markets in Europe and North America are off to a positive start even though coronavirus cases continued to climb in the US and states such as Florida and Texas slowed their reopening programs over the weekend. Across the pond, the Dax and FTSE are both up 0.6%. Dow Futures are up about 200 points or 0.8% as they try to bounce back from Friday’s 2.8% loss. Dow futures appear to be catching a tailwind from a 7.6% premarket rise for Boeing which has jumped on the news that recertification flights for the grounded 737 Max 8 start today.

NASDAQ futures are trailing their Dow counterpart, shrugging off earlier losses and posting a 0.1% gain. Social media stocks are dragging on the NASDAQ after Starbucks and Coca-Cola announced they are pausing social media ad spending in a growing political dispute over content moderation, free speech and corporate responsibility on social media sites.

In commodity action, WTI and Brent crude oil contracts are up about 1.4% and hanging around $40.00/bbl. Copper is up 0.8% this morning. Gold us holding steady near $1,785/oz. The US Dollar is mixed, falling against the Canadina Dollar and the Euro, while gaining against the Japanese Yen and British Pound.

It is a light week for scheduled corporate news, but a busy week for economic reports, starting with tonight’s monthly PMI reports out of China. On Tuesday, Fed Chair Powell and US Treasury Secretary Mnuchin are scheduled to testify to Congress, plus the US Chicago PMI and consumer confidence reports come out. Wednesday brings manufacturing PMI reports from around the world plus US ADP Payrolls. Thursday headliners include US nonfarm payrolls, US weekly jobless claims, Canada/US trade numbers, and Canadian manufacturing PMI. Friday sees Service PMI reports from Europe and Asia

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