Morning Minutes 11/25/2020

Morning Minutes

Stocks Pause Post-Dow 30,000, Pre-US Thanksgiving Holiday

November 25, 2020

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

Its Getaway Wednesday, where trading often slows down in the afternoon heading into the US Thanksgiving/Black Friday/Cyber Monday holiday break and seasonal shopping bonanza. Coming off of two strong days which saw the Dow Industrials finish at a record high above 30,000 yesterday and the NASDAQ close above 12,000, US index futures are flat with Dow futures slipping slightly back under 30,000.

European markets are also backsliding a bit this morning with the Dax down 0.2% and the FTSE down 0.5%. Commodity action is mixed with WTI and Brent crude oil both up about 0.9% but copper down 0.3%. Gold and silver are bouncing back a bit with gains of 0.3%-0.4% with gold finding some support near $1,800/oz.

With the holiday slowdown approaching, there has been a flurry of corporate and economic announcements overnight and into this morning. On the corporate side, retailers remain in the spotlight. Gap is down 10.75% in premarket trading today after the clothing retailer missed on EPS ($0.25 vs street $0.32) with struggles at Gap and Banana Republic offsetting growth at Old Navy and Athleta. In Canada today, convenience store operator Couche-Tard ($0.68 vs street $0.50) and recreational vehicle producer BRP ($2.13 vs street $1.51) both reported results well above expectations.

Three days of economic announcements are also being compressed into one due to the upcoming US holidays. October durable goods orders slowed from the previous month but were better than expected (1.3% vs street 0.9% and previous 2.1%), jobless claims were around expectations with continuing claims still trending downward and getting closer to 6.0M. A number of announcements are scheduled for later today including: consumer sentiment, personal income/spending and new home sales at 11:00 am EDT, weekly oil and natural gas inventories at 11:30 am, and minutes of the last FOMC meeting at 3:00 pm.

 

SIA Wealth In The Media

Chief Market Strategist appeared on BNN Bloomberg yesterday afternoon and spoke about recent trends in sector rotation, Dow 30,000 and more. A link to the replay is below:

https://www.bnnbloomberg.ca/video/less-presidential-election-risks-cause-market-rally-chief-market-strategist~2083958

 

Support Team SIA Motacular Moustaches This Movember

 

This month, in support of men’s health, SIA team members are participating in the Movember charity fund-raising campaign. Many of us know someone who has fallen ill to prostate or testicular cancer, mental illness or have passed away in recent years and are looking for a way to give back. The funds we help Movember raise will support life-changing services for mental health, innovative research, and scientific breakthroughs for cancer care. We know it has been a difficult year for everyone; if you are interested and able to support the cause this year, please click on the link below to access our team’s site. https://ca.movember.com/team/2383675

 

Best Regards, Jeremy Fehr and the Motacular Moustaches team.

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