Stocks React to Earnings and Employment Reports; Metals Retreat Continues

Earnings season continues with big beats from Celestica* ($2.21 vs Street $2.08, up 10.4% premarket) and UPS ($1.74 vs Street $1.29, up 12.0% premarket). Other companies beating expectations include UnitedHealth (up 4.0% premarket), and PayPal (up 14.1% premarket). Visa and Booking Holdings report after the close today.

Meanwhile, ADP has released a new look at the US employment market; four-week trailing US private sector job creation. For the period ending October 11th, US private sector employers added 14.25K jobs per week on average, or around 57K over four weeks, which is an improvement on ADP’s last monthly report which was -32K for September.  

Coming off a strong Monday that saw the NASDAQ rally 1.9% and the S&P 500 gain 1.3%, US index futures are trading up 0.2% to 0.5% this morning with Dow Futures the strongest so far. European markets are mixed with the DAX down slightly and the FTSE up slightly.

We are seeing a bit of a disconnect overseas this morning. Progress in US-China trade talks has been getting the blame for another selloff in precious metals as fears ease. Gold is down 2.0%, and has broken below $4,000, while Silver is down 0.6% and Platinum is down 2.0%. However, this has not translated into positive sentiment toward China sensitive markets, as Shanghai and Hong Kong lost 0.2%-0.3% overnight.

Commodities are under pressure again indicating continued concerns about the state of global resource demand. Crude Oil is down 1.2%, while Copper is down 0.9%.

*Shares of Celestica are held in some portfolios managed by SIA Wealth Management.

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