November 6, 2020
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Market Commentary By:
Colin Cieszynski, CFA, CMT
Chief Market Strategist
+1 (647) 282-4428
Overseas markets and US index futures had been drifting downward overnight as the post-election rally faded and uncertainty surrounding the results of the Presidential Election continued to sink in, with the potential growing that between recounts and legal challenges, this could drag on for a while and become a distraction in a time when coronavirus case counts are growing.
US index futures have started to shrug off ongoing uncertainty in the last few minutes, however, after bulls picked up a tailwind from positive US employment numbers. US employment data came in better than expected, indicating a continued recovery in the job market as both nonfarm payrolls (638K vs street 600K, previous revised up to 672K from 661K), and the unemployment rate beat the street (6.9% vs street 7.7% and previous 7.9%).
Canadian employment also continued to recover at a stronger pace than expected (83K vs street 75K and previous 378K). The Canadian unemployment rate was steady (8.9% vs street 8.8% and previous 9.0%). Itâ€™s a busy day for earnings in Canada as well headlined by Magna Internationalâ€™s big beat on earnings ($1.95 vs street $1.35), but misses from Enbridge ($0.37 vs street $0.40) and Telus falling short of expectations ($0.21 vs street $0.24).
A number of US companies posted positive earnings overnight and this morning, including T-Mobile US ($1.00 vs street $0.43), Square ($0.34 vs street $0.16), and ViacomCBS ($0.91 vs street $0.80), while Uber disappointed ($0.62 vs street $0.65).
Amid all of these developments, US index futures are now down 0.3% to 0.7%, but Dow Futures, for example, are down about 85 points a significant rebound after being down over 350 points earlier this morning.
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