Morning Minutes 9/1/2020

September 1, 2020

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Market Commentary By:
Colin Cieszynski, CFA, CMT
Chief Market Strategist
+1 (647) 282-4428

The start of September finds world markets mixed. In North America, Dow futures are down marginally while NASDAQ futures are up 0.8%. In Europe, the Dax is up 0.5% while the FTSE is down 1.3% returning from a holiday. Asia Pacific trading saw Seoul rally 1.0% but Sydney side 1.7%. Commodities are climbing again today with WTI and Brent crude oil up 1.2% and copper up 0.2%. Gold and silver are also up today, climbing 0.9% and 1.9% respectively.

In a sign of the times, Zoom Video Communications has spiked up 30.1% in premarket trading today after the video conferencing provider reported stellar results including a 355% increase in sales over year to $663.5 million, well above the $500.5 million street estimate. Earnings pre share of $0.92, were more than double the $0.45 street estimate. Management raised is guidance for next quarter (sales $685-$690M, EPS $0.73-$0.74) and for the full year (sales $2.37B-$2.39B, EPS $2.40-$2.47).

Manufacturing PMI reports from around the world are out today. China, Italy, France and others exceeded expectations, while the UK and Germany missed slightly but still came in above 50. The only significant disappointment was Spain which missed expectations and slipped back under the 50 line and back into contraction territory.

Canadian Manufacturing PMI (street 50.4 vs previous 52.9) is due at 9:30 am EDT. US ISM manufacturing PMI (street 54.5) is due at 10:00 am EDT. Investors may also pay attention to the forward looking New Orders component (street 53.5 vs previous 61.5) after a surge last month. US construction spending is also due today with the street expecting a 1.0% bounce from a 0.7% decline last month.

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