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Retailer Earnings and Flash PMI Numbers Share the Spotlight

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With a day and a half to go before US markets slow down for the Thanksgiving holiday break, the pre-holiday flood of news has started.

It’s already a big week for US retailers with Black Friday coming up and several major US chains have posted earnings results overnight and this morning. Stocks of those who did are struggling, even those with good numbers. Notables include Best Buy (EPS $2.08 vs street $1.19 but stock down 11.5% premarket after management suggested sales growth could slow in the coming quarter), Dick’s Sporting Goods ($3.19 vs street $1.97, same store sales 12.2% vs street 1.9%, down 3.75% premarket), Urban Outfitters ($0.89 vs street $0.84, down 11.0% premarket), and Abercrombie ($0.86 vs street $0.66, down 7.5% premarket). Later today meme video game retailer Gamestop reports results. Zoom Video also beat expectations ($1.11 vs street $1.09) but the stock is down 9.4% premarket with investors apparently concerned that workers returning to their offices could slow growth.

A day after the NASDAQ dropped fell 1.3%, NASDAQ futures are down another 0.3%, while Dow and S&P futures are steady. Overseas market action has been mixed with the Hang Seng down 1.2%, the Dax down 0.6% while the FTSE and Nikkei are up 0.1%. WTI crude oil is down another 0.3% as the US and several other countries keep talking about releasing supply from stockpiles to put a lid on prices. Natural gas has rebounded 3.6% this morning.

The US Dollar is on the rise this morning, gaining 0.9% against gold, 2.4% against platinum, and 0.3% against the Canadian Dollar as investors consider President Biden’s decision to keep Fed Chair Powell on for another term while appointing Governor Brainard Vice-Chair as a sign that the US central bank may remain hawkish and could accelerate its tapering program if inflation remains a problem.

Flash Manufacturing and Service PMI reports for the UK, Germany, France and the EU are out this morning and across the board, results arrived in the mid to high 50s and above street expectations, indicating a moderate expansion. US flash Manufacturing PMI (street 59.0 vs previous 58.4) and flash Service PMI (street 59.1 vs previous 58.7) reports are due at 9:45 am EDT today.  

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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