September 16, 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 equity markets have been building on Tuesdayâ€™s gains of 1.2% for the NASDAQ and 0.5% for the S&P 500 this morning with NASDAQ, Dow and S&P futures up 0.2%-0.5% amid a number of developments.
FedEx is up 9.0% in premarket trading after posting stellar results with both EPS ($4.87 vs street $2.69) and revenues ($19.3B vs street $17.5B) coming in far above expectations. The surge in growth was driven mainly by a 31% increase in daily package volumes over a year ago with explosive growth in online retailing this year driving demand for package delivery.
US retail sales continued to recover but at a slower pace than expected. August retail sales grew 0.6% from the previous month, less than the 1.0% growth which had been expected. July sales growth was revised down to 0.9% from 1.2%.
Energy prices are spiking again this morning with WTI crude oil up 2.3% and gasoline up 1.5%. This move appears to be driven by Hurricane Sally in the Gulf of Mexico shutting in 25% of US offshore production. The impact of storms has historically been fleeting and investors should note that natural gas is already falling back with a 1.5% decline today. Oil may remain active through the week with OPEC meeting tomorrow.
The Fed meets today with their monetary policy announcements due at 2:00 pm EDT. With the US Presidential Election campaign underway, the central bank appears likely to remain on hold through this meeting and the next one in late October. Â Investors may look to the statement for hints on how long rates may remain low or if negative rates are being considered. Because of this, the FOMC member economic forecasts may attract the most attention from investors looking for insight into the health of the US economy and its recovery momentum.
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.