September 2, 2020
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Market Commentary By:
Colin Cieszynski, CFA, CMT
Chief Market Strategist
+1 (647) 282-4428
Building on yesterdayâ€™s 0.75% to 1.40% gains for US indices, US index futures are up 0.6% to 1.0% this morning with the NASDAQ once again leading the charge. European indices are also up this morning with the Dax gaining 2.1% and the FTSE climbing 1.6%. Asia Pacific markets were mixed with Tokyo climbing 0.5% and Hong Kong falling 0.25%. Crude oil is up 0.5% today while copper is up 0.2%. Gold and silver are backsliding, falling 0.3% and 2.2% respectively.
Investors continue to digest a flurry of mixed economic announcements to start the month which has included better than expected US and Canadian Manufacturing PMI, US monthly auto sales continuing to rebound, US construction spending falling short of expectations and Australia confirming it has been in a recession for the last two quarters.
Todayâ€™s main economic news event is US ADP private sector payroll growth which accelerated to 428K in August from 212K in July, but they fell well short of the 950K the street had been expecting. Later today, a number of central bankers from the Fed, Bank of England and Bank of Japan are set to speak and the Fed is releasing its beige book regional economic report this afternoon. US factory orders are due at 10:00 am EDT followed by weekly US Crude Oil inventories at 10:30 am EDT.
Macyâ€™s is up 5.4% in premarket trading today after the department store chain reported smaller than feared losses for Q2. Macys lost $0.81 per share which was less than the $1.77 the street had feared. Same store sales were down 35.1% from a year ago which was worse than the 28.2% drop that investors had expected, but overall sales of $3.56B beat the $3.48B street estimate, boosted by a 53% increase in online sales.
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