Morning Minutes 10/20/2020

Morning Minutes

Positive Earnings Reports Help Stocks To Bounce Back

October 20, 2020

At SIA Wealth Management everything we do is based on Relative Strength Analysis. We evaluate the Relative Strength between asset classes giving us insight into money flows on a large scale, and from this select top ranked investments.

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

While overnight trading was mixed in the wake of yesterday’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 today’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 Peoples’ 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.

Disclaimer: SIA Wealth Management Inc. (SIAWM) specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investor’s investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIAWM nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.