Morning Minutes 9/11/2020

Morning Minutes

Stocks Try To Bounce Back Again Boosted By Earnings

September 11, 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

US index futures are up 0.5% to 0.8% this morning with Dow Futures up about 125 points. So far so good, but yesterday saw early gains in index futures wiped out as the day progressed, sending US indices to 1.4%-2.0% losses on Thursday. Early bullishness being countered by stronger bearishness can be seen as an ominous sign with the weekend approaching.

Investors have had some positive news to cheer overnight. Home exercise equipment producer Peloton is up 11.4% in premarket trading after reporting sales of $607M, up 172% from a year ago, and better than the $581M street estimate. EPS of $0.27 came in well above the $0.17 street estimate. For next quarter, management forecast sales of $720-$730M for the next quarter.   Oracle, meanwhile, is up 4.4% premarket after beating the street on earnings ($0.93 vs street $0.86).

There’s one piece of economic news that came out overnight which investors may want to keep in mind as a possible sign of things to come. Through the Southern Hemisphere winter of the last few months, parts of Australia and New Zealand have gone back into lockdown, impacting their economies. Last night New Zealand’s monthly Business PMI report showed a sharper than expected decline in economic activity (50.7 vs previous 58.8 and street 66.8). With the Northern Hemisphere autumn and winter seasons approaching, the potential that a second wave of COVID could slow or reverse the current reopening trend may start to influence investor thinking in the weeks and months to come.

Disclaimer: 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. 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.