Morning Minutes 11/6/2020

Morning Minutes

Positive Employment Numbers Help Index Futures Cut Losses

November 6, 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

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%). It’s a busy day for earnings in Canada as well headlined by Magna International’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.

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.