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Focus Turns to Energy Rallies as Silver Slides

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Commodity markets have been particularly active this morning. Natural Gas is up another 4.0% in the wake of yesterday’s big east coast storm and cold temperatures. Meanwhile WTI crude oil is up 2.3% this morning after OPEC producers indicated 99% compliance with current production quotas. On the other hand, metals are under pressure. Silver is down 5.75%, giving back much of yesterday’s early spike as new interest subsides. Meanwhile, platinum is down 2.6%, gold is down 1.1% and copper is down 0.5%.

Speaking of recent investor interest fading, after almost reaching the $500 level in intraday trading last week, Gamestop continues to fall back this morning, falling 40.8% in premarket action to trade near $133.50. Other recent movers apparently falling back to Earth today include AMC Entertainment down 32.7% premarket and Blackberry down 9.0% premarket.

Large cap indices are on the rise this morning. US index futures are all up about 0.7%, adding to yesterday’s gains of 2.5% for the NASDAQ and 1.6% for the S&P 500. Overseas, the Hang Seng gained 1.25%, the Dax and Nikkei are up 1.0%, and the FTSE is up 0.6%,  

US earnings season resumes today with mixed results. Companies beating expectations include Exxon Mobil ($0.03 vs street $0.01) and UPS ($2.66 vs street $2.14). Companies reporting disappointing results include Harley Davidson (-$0.63 vs street +$0.14) and Pfizer ($0.42 vs street $0.48).

After the close today, results are due from Amazon.com, Alphabet (Google), Pinterest, Electronic Arts, and Chipotle Mexican Grill.

It’s a relatively quiet day for economic news in between yesterday’s flurry of Manufacturing PMI reports and tomorrow’s Service PMI reports. US ADP payrolls are due at 8:15 am EST Wednesday with the street expecting and increase of 45K for January in a rebound from December’s 123K decline.  

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.

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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.

Colin Cieszynski, Chief Market Strategist
Market Commentary:

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

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