SIA Wealth Morning Minutes Banner

Stocks and Commodities Rise On Stimulus Anticipation

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

Investors have returned from Super Bowl weekend in a positive mood with stocks and commodities on the rise this morning. US index futures are up 0.3%-0.4%, while overseas, the FTSE is up 1.6%, the Dax is up 0.4% and the Nikkei rallied 2.1%. Commodities are also on the rise today with WTI crude oil climbing another 1.1%, natural gas up 2.4%, and copper up 0.3%. Precious metals are also on the move upward today led by a 3.3% gain for platinum, while silver is up 0.75% and gold is up 0.5%.

The 10-year US treasury yield is also on the rise today approaching 1.2% suggesting that investors are anticipating improved economic conditions and potentially higher inflation in the years ahead. Over the weekend, US Treasury Secretary Yellen suggested that if the Biden Administration’s new stimulus plan passes, the US could return to full employment next year.

It has otherwise been a relatively quiet day for economic and corporate news, which is common with the first week flurry of economic reports subsiding. Earnings season moving into its later innings in the US and through its peak in Canada. It is also a pre-holiday week with Lunar New Year on Friday, closing many Asia-Pacific markets, followed by holidays in the US and Canada next Monday.

Between all of these factors, it’s a light day for market related news. The most interesting development has been Tesla’s decision to purchase $1.5B in Bitcoin as part of a plan to accept payments for its vehicles in Bitcoin. The cryptocurrency is up 16.7% this morning, while Tesla shares are up 2.4% premarket.

Its a big week for earnings in Canada with results due across a wide spectrum of sectors including insurance, gold miners, marijuana, and forest products. Headliners include Canopy Growth* on Tuesday, Manulife, Sun Life and Great-West on Wednesday, West Fraser Timber*, Agnico-Eagle, and Cineplex on Thursday, wrapping up with Air Canada, CAE, Enbridge and Constellation Software on Friday.

Senior US companies reporting results this week include: Cisco Systems, Twitter and Lyft Tuesday, General Motors*, Uber and Coca-Cola on Wednesday, finishing with Pepsico and Walt Disney on Thursday.

*Shares of West Fraser Timber, Canopy Growth and General Motors are held in some portfolios managed by SIA Wealth Management.

SIA Wealth True Tactical Webinar Tuesday February 9, 2:00 pm EST (1.5 CE Credits For Attending Advisors)

Join SIA Wealth Management as we discuss the benefits of a True Tactical approach to investing.

Webinar audio will be available through computer VoIP or dial in using your phone.

Register at:  https://register.gotowebinar.com/register/9347360828781325

After registering, you will receive a confirmation email containing information about joining the webinar.

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