Morning Minutes 11/20/2020

Morning Minutes

Steady Markets Digest Retailer Earnings plus Vaccine and Lockdown Developments

November 20, 2020

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Market Commentary By:
Colin Cieszynski, CFA, CMT
Chief Market Strategist
+1 (647) 282-4428

Stocks and commodities have been steady overnight as investors continue to weigh the long-term potential of new COVID vaccines enabling economies to reopen further, versus the short-term risk that until vaccines are available, rising case counts heading into the winter could force North America to follow Europe into a new round of lockdowns.

Pfizer is up 2% premarket today on the news that it plans to file for emergency approval for its COVID vaccine, but it remains well short of the levels achieved following its trial results announcement on November 9th, which suggests that eventual approval of its vaccine may have already been priced in by traders.

US index futures are split with NASDAQ futures up 0.15% and Dow futures down 0.15%, indicating an impasse between bulls and bears. Overseas, the Nikkei fell 0.4% overnight, while the Hang Seng, Dax and FTSE all gained about 0.4%. Crude oil continues to climb with WTI gaining 0.6% and Brent rising 0.4%. Copper is having a good day rising 1.8%. Gold has bounced 0.8% but remains well below $1,900/oz.

Investor reaction to overnight earnings reports suggests capital continues to rotate away from sectors which had benefitted from lockdowns to areas which have benefitted from reopenings. Workday, whose software and services benefit from a “work from home” economy, is down 3.6% in premarket action despite announcing stronger than expected earnings per share ($0.86 vs street $0.67). Retail Foot Locker, meanwhile, is up 2.8% premarket after beating the street on earnings ($1.21 vs street $0.63).

Canada reported mixed economic numbers today. Retail sales accelerated in September more than expected (1.1% vs street 0.2% and previous 0.4%). New house prices, on the other hand, rose less than expected (0.8% vs street 1.0% and previous 1.2%).


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Best Regards, Jeremy Fehr and the Motacular Moustaches team.

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