Morning Minutes 9/11/2020

Morning Minutes

Stocks Try To Bounce Back Again Boosted By Earnings

September 11, 2020

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Market Commentary By:
Colin Cieszynski, CFA, CMT
Chief Market Strategist
ccieszynski@siawm.com
+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.

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