Morning Minutes 10/22/2020

Morning Minutes

Steady Stocks Digest Earnings Reports

October 22, 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
+1 (647) 282-4428

This morning finds stock markets still stuck in neutral, supported by another round of positive earnings reports but held back by political uncertainty and an apparent reluctance among investors to commit to a direction ahead of the US election which is now only 12 days away. US index futures are down 0.1% adding slightly to yesterday’s 0.3% declines, while over in Europe, the FTSE and Dax are both down about 0.2%. Commodity markets have reversed their direction of the last couple of days with WTI and Brent crude oil both bouncing 0.8% and copper pulling back 1.4%. Gold is down 1.1% sitting just above $1900/oz.

US weekly jobless claims (787K vs street 860K) and continuing claims (8.37M vs street 9.50M) both came in better than expected this morning, indicating the US job market continues to recovery. Tomorrow morning brings flash PMI reports, the first early peek at October economic activity in the US and Europe.

Several companies beat the street on earnings overnight and this morning including: Rogers Communications ($1.08 vs street $0.78), Tesla ($0.76 vs street $0.57,up 4.2% premarket), Coca-Cola ($0.55 vs street $0.46), homebuilder PulteGroup ($1.34 vs street $1.12), chemical producer Dow ($0.50 vs $0.33), appliance producer Whirlpool ($6.91 vs street $4.20) and Chipotle Mexican Grill* ($3.76 vs street $3.47).

More earnings reports are due on both sides of the border this afternoon, headlined by Intel, Expedia, and Union Pacific in the US. Tomorrow morning brings results from American Express.

*Shares of Chipotle Mexican Grill are held in some portfolios managed by SIA Wealth Management.

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