October 8, 2020
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Market Commentary By:
Colin Cieszynski, CFA, CMT
Chief Market Strategist
+1 (647) 282-4428
Building on yesterdayâ€™s gains of 1.7% to 1.9% for US indices, US index futures are up another 0.50% to 0.75% this morning as investors digest last nightâ€™s US Vice-Presidential debate and look ahead to earnings season which kicks off on Tuesday.
Overseas markets have also been climbing with the Dax up 0.6% and the FTSE up 0.5% in Europe, while in Asia Pacific trading Tokyo and Sydney both gained 1.0%. Commodities are mixed with WTI and Brent crude oil climbing 1.9% but copper slipping 0.5%. Gold is up 0.4% sitting just below $1,900/oz.
While economic news has been light, there have been a number of significant corporate events which investors have responded to.
IBM is up 11.0% in premarket trading today after the OG technology giant announced plans to spin off its legacy IT infrastructure division into a separate public company in order to focus on cloud computing. A sign of the times for Big Blue.
Strong same store sales numbers from retailers have also been attracting attention. Costco announced that same store sales were up 15.5% in September, outpacing the 9.2% street estimate. McDonalds announced US same store sales increased 4.6% in Q3 and also announced it is raising its dividend by 3.0%. Dominos Pizza announced Q3 same store sales growth of 17.5% which beat the 13.5% street estimate.
Regeneron Pharmaceuticals is up 4.5% premarket today on the news that the company has applied for FDA approval of its COVID-19 antibody treatment for emergency use after it was used to treat President Trump last weekend on a compassionate use basis.
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