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Retail Earnings and European Tapering In Focus

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While the Bank of Canada was quiet yesterday as had been widely expected, the European Central Bank announced this morning that it plans to start tapering back its emergency asset purchase program, sending a signal that the European economy is starting to get back up on its feet and off life support. With the ECB moving into the tapering camp and the Fed getting lonelier in the all-out dovish camp, the Euro, Pound, Loonie, Yen, and Gold, are up all up against the US Dollar this morning.  

US index futures are flat this morning as investors digest the losses of the last two days. In commodity trading, copper is on the rebound, gaining 1.6%. Energy contracts are mixed with WTI crude oil up 0.6% and natural gas down 0.3% ahead of today’s weekly US inventory reports which include natural gas at 10:30 am EDT and crude oil at 11:00 am EDT.

It’s a mixed morning for retailer earnings news. Lululemon Athletica is up 12.4% premarket after the clothing company announced that sales increased by 63% over year to $1.45B, beating the $1.34B street estimate with earnings per share crushing estimates ($1.65 vs street $1.19). On the other hand, Gamestop is down 9.1% premarket after the video game retailer reported a worse than expected loss (-$0.76 vs street -$0.67).

Tomorrow morning brings Canadian employment numbers for August. It will be interesting to see if reopening momentum in Canada continued through the late summer or if hiring slowed as it did in the US. The street is expecting and increase of 100K jobs and an unemployment rate of 7.3%.

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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