September 10, 2020
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Market Commentary By:
Colin Cieszynski, CFA, CMT
Chief Market Strategist
+1 (647) 282-4428
Coming off of a three-day correction and a one day rebound, equity markets have started to backslide again overnight and into this morning on another light news day. US index futures are all down about 0.5%, giving back some of yesterdayâ€™s gains which varied between 1.6% for the Dow and 2.7% for the NASDAQ.Â Overseas, the Dax is flat, while the FTSE is down 0.4%.
The weekly US unemployment report was disappointing. Initial claims of 884K were worse than the 846K street estimate but flat from a week ago. Continuing claims rise to 13.385M, which was worse than the 12.925M street estimate.
Energy commodities are down again today with WTI falling 1.25%, Brent down 1.0%, Natural Gas down 1.95% and Gasoline slipping 0.1%. Last night API reported a 2.97mmbl weekly build in US oil inventories, raising concerns about demand for energy. Because of the holiday on Monday, the weekly DOE oi inventory report is due at 11:00 am EDT today with the street expecting a 1.3 mmbbl drawdown.
In Canada today Empire Company, parent of Sobeys and Safeway has posted positive results. EPS of $0.71 for the July quarter, were up 46.9% from a year ago, as sales rose 9.0% to $7.35B. Same store sales excluding fuel were up 11.0% over year, propelling growth.
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