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INAUGURATION DAY, BANK OF CANADA, AND NETFLIX EARNINGS

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A busy day for political and monetary events finds stocks and commodities around the world trading higher again this morning. US index futures are up 0.1% to 0.9% with the NASDAQ leading the charge. Overseas, the FTSE is flat (but the Pound is up 0.25% against the US Dollar and 0.5% against the Euro), the Dax is up 0.4% and the Hang Seng is up 1.0%. WTI Crude Oil is up 0.8%, but natural gas is down another 3.5%. Metals (gold, silver and copper) are all holding steady so far today.

Today’s main event is the inauguration of Joe Biden as the 46th US President at noon EST. Following the ceremony and speech, Biden is expected to hit the ground running and issue a number of executive orders related to climate (rejoining the Paris Accord and cancelling the Keystone XL pipeline), immigration, and other areas, with more expected over the next several days. US stocks have come a long way since election night, and with several major US indices hitting new all-time highs since the start of this year, significant positive expectations have been built into the market for the new administration.

The Bank of Canada is meeting this morning with a decision and statement due at 10:00 am EST. No changes to interest rates or asset purchases are expected at this time but investors may still look to the statement for clues about the state of the Canadian economy or hints of whether the bank is planning additional support measures to offset the negative economic impact of increased lockdowns and curfews.

Earnings season continues to ramp up with a number of results out this morning, headlined by Netflix which is up 13.1% in premarket trading after announcing quarterly numbers. Results were mixed with sales beating expectations ($6.64B vs street $6.62B) but EPS falling short of analyst estimates ($1.19 vs street $1.39). It appears investors have decided to focus on the news that the company topped 200 million subscribers for the first time and talk from management about moving toward becoming free cash flow positive plus the potential for share buybacks in the coming year.

Other senior US companies reporting results today include: Procter & Gamble ($1.64 vs street $1.51) and UnitedHealth ($2.52 vs street $2.41). Alcoa and United Airlines are scheduled to report after the close this afternoon.

SIA Wealth In The Media

Chief Market Strategist Colin Cieszynski recently appeared on BNN Bloomberg where he discussed relative strength in North American markets, and the potential impact of the incoming Biden Administration on stocks and markets.

Biden blocking the Keystone XL throws a ‘monkey wrench’ into the energy sector’s recovery: Market strategist

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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