Morning Minutes 9/25/2020

Morning Minutes

World Market Slide Continues

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

Equities and commodities have resumed their retreat Friday. With corporate and economic news flow still light as the end of the quarter approaches next week, investors continue to be rattled by political, social and economic uncertainty as the US November election approaches and new coronavirus cases continue to mount.

US index futures are pointing lower this morning with Dow and S&P 500 futures both down 0.4%, suggesting that yesterday’s meagre gains may have been a brief pause within an emerging downward trend. European markets are also under pressure again today with the Dax dropping 1.6% and the FTSE falling 0.4%.

Commodities are also sliding today with WTI crude oil down 0.8% and slipping back under $40.00/oz, while natural gas is down 3.1% and copper is down 0.4%. In currency action, the US Dollar continues to attract interest, rising 0.8% against gold, gaining 1.3% on silver and adding 0.3% against the Euro.

US durable goods orders increased by 0.4% in August which was short of the 1.5% monthly growth the street had been expecting and a significant slowdown in momentum from the 11.7% monthly growth reported for July.

Costco is down 2.25% in premarket trading today despite posting stronger than expected results. Boosted by 12.5% total sales growth, 11.4% same store sales growth and online sales growth of 91%, the retailer beat analyst expectations on both revenues ($53.4B vs street $52.1B) and EPS ($3.04 vs street $2.84).

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