Morning Minutes 7/13/2020

Morning Minutes

Stocks Climb, Oil Falls with Earnings and Deals In Focus

July 13, 2020

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

Stock markets around the world are off to a strong start this week. In Asia Pacific trading, the Nikkei rallied 2.2% and Shanghai gained 1.7%. In Europe this morning, the DAX, CAC and FTSE are up 1.1% to 1.4%.US index futures are up 0.7% to 0.9% with Dow Futures rising about 200 points so far.

Investors have responded favorably to a number of overnight developments, headlined by the US giving “fast track” status to two COVID-19 vaccines, and a big merger announcement in the technology sector with chipmaker Applied Materials agreeing to purchase  Maxim Integrated for $20.9B. Pepsi is up 2.4% this morning after the soft drink and packaged food producer beat the street on EPS ($1.32 vs street $1.25).

On the other hand, WTI and Brent Crude oil are both down about 1.0% this morning but both are also still holding above $40.00/bbl. With demand starting to recover as economies reopen, some of the big OPEC+ producing countries have reportedly started talking about rolling back some of their recent 9.7 mmbbl in emergency production cuts when the initial three-month term expires next month. A ministers meeting is scheduled for this week to start discussing future plans.

Earnings season in the US kicks into gear tomorrow with results due from Citigroup, JPMorgan and Wells Fargo followed by results from Goldman Sachs and IBM on Wednesday, plus Netflix, Microsoft and Bank of America on Thursday.

It’s also a busier week for economic news. There are three central bank meetings: Bank of Japan Tuesday night, Bank of Canada Wednesday and the European Central Bank of Thursday which may bring more commentary on economies and their outlooks for monetary policy. China reports its monthly trade balance tonight and Q2 GDP Wednesday night. The US and Canada report retail sales on Thursday and Friday respectively.

New Video: Market Commentary and Portfolio Update  

With Jeremy Fehr – Founder and CEO of SIA Wealth Management

A replay of our latest webinar replay is available featuring Jeremy Fehr, founder of SIACharts and SIA Wealth, discussing enhanced investment strategies in SIA Wealth managed portfolios plus current trends in world markets. A PDF version of the presentation is available.

GoToMeeting Version: https://attendee.gotowebinar.com/recording/8138382067309661443

YouTube Version: https://youtu.be/sZwGWmmrTGs

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