September 1, 2020
At SIA Wealth Management everything we do is based on Relative Strength Analysis. We evaluate the Relative Strength between asset classes giving us insight into money flows on a large scale, and from this select top ranked investments.
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.
Disclaimer:Â SIA Wealth Management Inc. (SIAWM) specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investor’s investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable.Â SIAWM nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.