Morning Minutes 7/28/2020

Morning Minutes

Stocks Slip Amid Mixed Earnings Reports

July 28, 2020

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

US and European markets have dropped back a bit this morning with investors turning their focus to a mixed bag of earnings reports. US indices are giving back some of yesterday’s gains with moderate declines of 0.4%-0.5%, while across the pond, the Dax is down 0.5% and the FTSE is down 0.2%.

After hitting a new all-time high yesterday, gold has dropped back 0.5% to retest its $1,920/oz breakout point. Other metals have also been backsliding this morning with silver falling 3.4% and copper down 0.3%. Energy markets are mixed with WTI crude down 0.3% and Brent Crude up 0.3%.

Earnings season picks up again in the US today with mixed results relative to expectations. Companies who exceeded expectations include: homebuilder DR Horton ($1.72 vs street $1.30), Pfizer ($0.78 vs street $0.66, COVID vaccine trial underway), defense contractor Raytheon ($0.40 vs street $0.12), and paint producer Sherwin-Williams ($7.10 vs street $5.85).

US companies who posted worse than expected results include: McDonalds ($0.66 vs street $0.74, global same store sales down 23.9%), Harley-Davidson (-$0.60 vs street $0.04), and 3M ($1.78 vs street $1.80.

Companies scheduled to report results after the close today include: Starbucks, Advanced Micro Devices and eBay. Tomorrow brings another big round of reports on both sides of the border plus the decision and statement from this week’s Fed meeting.

 

SIA Wealth In The Media

Chief Market Strategist Colin Cieszynski recently appeared on BNN Bloomberg speaking about the recent rally in Gold and summer trends for stock markets. The replay link is below.

It’s a stock pickers market: SIA Wealth’s Cieszynski

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