SIA Wealth Morning Minutes Banner

STEADY STOCKS AWAIT BIDEN SPEECH AND EARNINGS SEASON

Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on facebook
Facebook
Share on email
Email

US stocks remain in a holding pattern ahead of tomorrow’s kickoff to earnings season. US index futures are flat to up 0.3%, similar to yesterday’s flat to 0.4% return. Overseas markets were also mildly positive with the Dax up 0.2%, the FTSE up 0.5% and the Hang Seng up 0.9%. Energy and metals trading is also quiet so far today with Gold down 0.7%, Copper up 0.6% and WTI crude oil down 0.6%.

Investors appear to be sitting on their hands awaiting a flurry of developments over the next 24 hours. This evening, President-Elect Joe Biden is expected to outline his plans for dealing with the current wave or COVID 19 including vaccinations, fiscal stimulus and possibly other initiatives. This afternoon, Fed Chair Powell and three other FOMC members are set to speak which investors may look to for hints of whether the central bank is planning to bring in additional stimulus to deal with the current round of lockdowns.

Ahead of tomorrow’s formal kickoff of earnings season, there are a number of corporate reports out today. Delta Air Lines reported a slightly worse than expected loss (-$2.53 vs street -$2.50) but mentioned that it cut its cash burn rate by about 50% in the latest quarter. Retailer Nordstrom announced a holiday season same store sales plunge of 22% from a year ago indicating discretionary retailers, particularly in clothing, continue to struggle, but also that consumers continue to shift spending online with a 54% increase in online sales over a year ago.

In economic news, China announced a stronger than expected trade surplus ($78.1B vs street $72.3B) boosted by higher than expected export growth (18.1% vs street 15.0%). Imports were also higher than expected (6.5% vs street 5.0%), a positive indicator of growing demand for commodities.

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.

Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on facebook
Facebook
Share on email
Email

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

Keep Reading

INTERNET EXPLORER NOTICE