Morning Minutes 9/24/2020

Morning Minutes

Precious Metal Plunge, Stock Slump and Blackberry Earnings

September 24, 2020

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Market Commentary By:
Colin Cieszynski, CFA, CMT
Chief Market Strategist
ccieszynski@siawm.com
+1 (647) 282-4428

Precious metals continue to retreat this week in reaction to a rebound in the US Dollar. Gold, which dropped back under $1,900/oz yesterday, is down another 0.3% today trading near $1,860, while silver is down 3.3% and platinum is down 1.8%. Commodity action has been mixed with natural gas climbing another 3.4%, crude oil flat and copper falling 1.5%.

Stock markets around the world continue to drift downward. Asia Pacific markets have been leading the slide as tensions between North and South Korea flared up again. Seoul dropped 2.6% while Hong Kong and Shanghai fell 1.7% and Tokyo slipped 1.1%. In Europe today the FTSE is down 0.5% and the Dax is down 0.1% after German ZEW investor survey figures came in below expectations.

Adding to yesterday’s plunges of 3.0% for the NASDAQ and 2.3% for the S&P 500, US index futures are pointing downward again today with losses varying between 0.2% for Dow Futures and 0.8% for NASDAQ futures. Better than expected results from Carmax* ($1.79 vs street $1.08) and Darden Restaurants ($0.28 vs street $0.05) have been ignored by investors so far.

One bright spot, however, has been the positive reaction to Blackberry earnings, which have sparked a 6.2% pre-market rally. Blackberry EPS of $0.11 came in well above the $0.02 street estimate while sales of $259M were up 6.1% from a year ago.

*Shares of Carmax are held in some portfolios managed by SIA Wealth Management.

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