Morning Minutes 10/9/2020

Morning Minutes

Stocks Keep Climbing on Strong Canadian Employment Data

October 9, 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 pointing toward another positive open with gains of about 0.4% as US equity indices look to build on to yesterday’s 0.4% to 0.8% gains. Overseas markets have also been climbing, led by a 1.7% rally for Shanghai on its return to trading from a week of holidays. In Europe, the FTSE is up 0.75% and the Dax is up 0.1%. Commodity trading is mixed today with WTI crude oil down 0.7% but holding $40.00/bbl, while copper is up 1.0%. The US Dollar has dropped back a bit, falling 0.3% against the Euro and the Canadian Dollar, falling 1.35% against Gold and falling 2.75% relative to Silver.

Economic news continues to indicate a recovering global economy. Today’s Canadian employment report hit a home run with job growth accelerating in September and crushing crushed street expectations (378K vs street 156K and previous 278K). The Canadian unemployment rate dropped back under 10% as well, falling to 9.0% from 10.2% last month, and coming in significantly better than the 9.7% street estimate.

Investors main focus stateside is on continued haggling between the White House and Congressional Democrats over fiscal stimulus with the former looking for targeted initiatives and the latter looking for a broad-based program. The two parties also continue to negotiate over what to do about the remaining Presidential debates with election day coming on November 3rd.

Corporate news has been light today but that is about to change with earnings season set to kick off on Tuesday starting with big banks like Citigroup, JPMorgan Chase and Wells Fargo. Monday is a full holiday in Canada and a partial holiday in the US so we may see positioning today and Monday ahead of next week’s results, particularly in US Financials.

 

New Video: Market Commentary and Portfolio Update – October 7, 2020

With Paul Vendrinsky-Portfolio Manager, Ted Bader-President, and Colin Cieszynski – Chief Market Strategist, of SIA Wealth Management

A new webinar replay is available featuring Paul Vendrinsky updating on the recent performance of SIA Wealth Managed portfolios, Ted Bader discussing portfolio investing strategy, plus Colin Cieszynski covering current trends in world markets. A PDF version of this presentation is available.

GoToMeeting Version: https://attendee.gotowebinar.com/recording/2347117986365966087

YouTube Version: https://youtu.be/fvknvuvoUO8

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