Morning Minutes 10/16/2020

Morning Minutes

Stocks Rebound With Strong US Retail Sales and Bank of Canada In Focus

October 16, 2020

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

Building on morning gains in Europe where the Dax is up 1.0% and the FTSE is up 1.4%, US index futures are in the green this morning with gains of 0.40% to 0.50% as they bounce back from yesterday’s 0.00% to 0.50% declines for major US indices.

Positive economic news has helped to boost investor confidence this morning. US retail sales for September came in much better than expected (1.9% vs street 0.7% and previous 0.6%) indicating that reopening recovery momentum has continued. Meanwhile north of the border, the Bank of Canada indicated late yesterday that it plans to reduce or end some of its emergency operations related to mortgage bond purchases, repos and bankers’ acceptances, citing improved operational conditions in financial markets.

Earnings season continues today with oilfield service giant Schlumberger ($0.16 vs street $0.13) plus Intuitive Surgical ($2.77 vs street $2.07) beating expectations. Boeing is up 5.5% in premarket trading after European authorities cleared the troubled 737-MAX-8 aircraft to start flying with passengers again

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