Stocks Consolidate Index Moves To All-Time Highs

Amid the celebrations surrounding the Dow closing above 38,000 and the S&P 500 reaching a new all-time high yesterday, upward momentum for equity markets appears to be slowing. US index futures are trading between -0.1% and +0.2% this morning, consolidating the US index gains of the last three trading days, including an upward move of 0.2%-0.4% yesterday. Other bright spots include was a 2.0% catch up rally for the Russell 2000 yesterday and a 2.6% bounce for the Hang Seng overnight, shrugging off recent weakness. The Dax and FTSE are flat so far today.  

Earnings season resumes this morning with results out from companies across a broad range of sectors. Overall, the market response has been split between positive and negative. Stocks gaining this morning on earnings related news include: United Airlines, up 6.5% premarket, and Verizon, up 4.3% premarket. Johnson & Johnson and Procter & Gamble are basically holding steady after beating the street on earnings.

On the downside, several companies are retreating this morning following positive earnings results including: 3M, down 7.1% premarket, and General Electric*, down 1.5% premarket. After the close today, results are due from a number of companies including Netflix* and Texas Instruments.  

Cryptocurrencies are getting hammered this morning, with Bitcoin down 3.1% and Ethereum down 5.5%. Energy is also under pressure with US Crude Oil down 0.8% and Natural Gas down 1.0%. Metals are having a relatively better morning with Gold up 0.3% and Copper up 0.7%.

*Shares of Netflix and General Electric are held in portfolios managed by SIA Wealth Management.

SIA Wealth In The Media:

Chief Market Strategist Colin Cieszynski appeared on BNN Bloomberg recently where he spoke about earnings season, and relative strength trends between and within in market sectors.

Energy and materials seem to be weakening lately according to SIA wealth management

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