Morning Minutes 12/11/2020

Morning Minutes

Markets Drift as Trade and Stimulus Talks Drag On

December 11. 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

Friday finds stock markets around the world drifting downward with US index futures slipping 0.6%-0.7%, the Dax falling 1.4%, the FTSE retreating 0.7% and the Nikkei dipping 0.4%. The malaise has also spread to commodities where copper is down 1.1% while WTI and Brent Crude are flat to down 0.2%.

It appears to be a lack of news this morning that has been weighing on bourses today. Investors have been hoping for successful resolutions to stimulus/spending talks in the US and UK/EU trade talks in Europe, plus FDA approval for Pfizer’s COVID vaccine in the US and nothing has happened so far. The British Pound is down 1.1% with trade talks dragging ahead of Sunday’s deadline and UK PM Johnson suggesting a growing possibility of the UK crashing out of the EU with no new trade deal on January 1st. In the US, the Senate still needs to pass a one-week stopgap spending measure to avoid a government shutdown after today, while the House is not set to sit again until Tuesday. The FDA meanwhile, indicated that a panel has recommended emergency use approval for Pfizer’s COVID vaccine and the agency is working away on a final decision but no approval has been given as of yet.

In corporate news, Disney is up 8.2% in premarket action after announcing overnight that Disney Plus+ subscribership has grown to 86.8 million, up 13 million over the last three months, plus a number of new shows in development for streaming in the Star Wars and Marvel franchises.  AirBNB is down 3.2% in premarket action after soaring in yesterday’s trading debut to $144.71, more than double the $68.00 IPO offering price.

Several companies beat the street on earnings overnight as well including Costco ($2.29 vs street $2.05), Lululemon ($1.16 vs street $0.88), Broadcom ($6.35 vs street $6.25) and Oracle ($1.06 vs street $1.00).

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.