October 20, 2020
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Market Commentary By:
Colin Cieszynski, CFA, CMT
Chief Market Strategist
+1 (647) 282-4428
While overnight trading was mixed in the wake of yesterdayâ€™s US market decline of 1.4%-1.6% for major indices, US stocks have been bouncing back a bit this morning with index futures rising 0.2% to 0.4%. Another round of better than expected earnings reports have been helping to shore up investor confidence. Speculation over whether US politicians can reach a stimulus deal before todayâ€™s deadline for getting a deal done before Election Day, has pushed markets in different directions at different times over the last 24 hours.
Earnings season kicks off in Canada today with railroad Canadian Pacific scheduled to report results this morning followed by competitor Canadian National this afternoon. In the US, several senior companies have reported stronger than expected results overnight including: insurer Travelers ($3.12 vs street $3.06), Procter & Gamble ($1.63 vs street $1.42), Logitech ($1.87 vs street $0.57, up 17.3% premarket) and Lockheed Martin ($6.25 vs street $6.09). After the close this afternoon, Netflix, Texas Instruments, and Snap are scheduled to report results.
Overnight economic news has been mixed. The Peoplesâ€™ Bank of China held interest rates steady. In the US disappointing housing starts was offset by stronger than expected building permits. Commodities trading has also been mixed with the most interesting development being a 1.1% gain for copper which suggests that investor expectations for the global economy and resource demand remain optimistic despite all of the political and medical noise out there at the moment.
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