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MARKETS REMAIN MIXED AS EARNINGS SEASON RESUMES AND IMF UPDATES FORECASTS

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For the second day in a row action across world stock markets has been mixed. Overseas markets have reversed course with European indices clawing back Monday’s losses led by a 2.0% gain in the Dax. Asia Pacific markets gave back much of Monday’s gains led by a 2.5% drop for the Hang Seng. US index futures appear indecisive this morning with Dow Futures up 0.25%. S&P 500 and NASDAQ futures are flat as they digest yesterday’s record closing highs.

Energy and metals are mixed again today. Natural gas is up 2.0% while WTI crude oil is up 0.3% as energy markets rebound. Metals, however, are uneven today with copper falling 0.6%, while gold is flat and silver is up 0.5%.

Earnings from big cap companies are in the spotlight again today. General Electric is up 9.1% in premarket action after sales and cash flow beat expectations, offsetting a slight earnings miss. Credit card provider American Express beat EPS expectations ($1.76 vs street $1.31) with management noting that as new lockdowns took hold, online spending increased but spending on entertainment and travel decreased. Other senior companies beating the street on earnings today include: 3M ($2.38 vs street $2.05), Johnson & Johnson ($1.86 vs street $1.82), and Verizon ($1.21 vs street $1.17). In other news, Beyond Meat is up 15.9% in premarket action after announcing a new partnership with PepsiCo to develop plant-based beverages and snacks.

Earnings season kicks off in Canada this afternoon with Canadian National reporting, followed by fellow railroad Canadian Pacific tomorrow. US headliners this afternoon include: Microsoft and Starbucks, followed by Boeing tomorrow morning.

The International Monetary Fund has updated its forecasts for 2021, revising its world GDP growth forecast upward for this year to 5.5% from 5.2%, and noting it expects world GDP to grow by another 4.2% in 2022 as the rollout of vaccines enable economies around the world to reopen. The agency noted that growth could be quite uneven between countries and regions. For example, it raised its US 2021 GDP growth forecast to 5.1% from 3.1% but cut its EU forecast to 4.2% from 5.2%.

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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