July 29, 2020
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Market Commentary By:
Colin Cieszynski, CFA, CMT
Chief Market Strategist
+1 (647) 282-4428
Stock markets are steady this morning with US index futures up 0.3% to 0.6% while over in Europe, the Dax is up 0.1% and the FTSE is up 0.2%. Copper is up 0.1% but precious metals are stronger with gold rising 0.5% to trade near $1,950/oz. Crude oil is picking up today with WTI gaining 1.1% and Brent up 1.3% after API reported a 6.8 mmbbl drawdown in US weekly oil inventories.
Itâ€™s a busy day for earnings reports on both sides of the border. Shopify* is up 9.7% in premarket trading after reporting a 97% increase in sales over a year ago to $714M which was well above the $514M street estimate.
Other companies who beat expectations include: Visa ($1.07 vs street $1.03), General Motors (-$0.50 vs street -$1.77), Advanced Micro Devices ($0.18 vs street $0.16), eBay ($1.08 vs street $1.06), Amgen ($4.25 vs street $3.82) and Starbucks (-$0.46 vs street -$0.59).Enbridge with EPS of $0.41, met expectations. Several companies reported worse than expected results including Boeing (-$4.79 vs street -$2.54) and General Electric (-$0.15 vs street -$0.10). Meanwhile retailer L Brands announced plans to lay off 15% of its corporate staff.
A number of companies are expected to report results after the close today including Facebook, Sierra Wireless, Qulacomm, Fitbit, Agnico-Eagle, and Kinross Gold.
Developments in Washington could also potentially influence trading today. CEOs of several technology companies including Apple, Alphabet (Google), Facebook, and Amazon.com* are scheduled to testify to congressional anti-trust hearings today which could potentially impact NASDAQ sentiment. The Fedâ€™s latest monetary policy decision is due at 2:00 pm EDT today. The street is not expecting any significant moves from the central bank but may look to comments in the statement or Chair Powellâ€™s press conference for hints about the current state of the US economy and whether the Fed is considering taking additional action in future.
*Shares of Shopify and Amazon.com are held in some portfolios managed by SIA Wealth Management.
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