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Stocks Climb Amid Mixed Earnings in Pre-Holiday Trading

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Trading overnight was relatively quiet with several Asia-Pacific markets closed heading into the Lunar New Year holidays. European markets have been flat to slightly positive with the Dax rising 0.7%. US index futures are pointing toward a higher open this morning with gains of 0.25% to 0.50% after finishing essentially flat yesterday, with the Dow Industrials managing to close at a new all-time high.

Commodity action has been mixed overnight. Natural Gas is soaring again, up 3.35% while platinum is up another 1.2% and copper is up 0.4%. WTI crude oil, on the other hand, is down 0.6%. Gold and silver are up 0.2% and 0.6% respectively.

Earnings reports continue to roll out on both sides of the border, particularly in Canada, where Bombardier announced a larger than expected loss (-$0.20 vs street -$0.70), and more layoffs as it intends to shut down its LearJet program this year. Movie theatre chain Cineplex Odeon lost $230.4M or $3.64/share as Q4 revenues plunged to $52.5M from $443.2M in the same quarter a year ago. Tim Hortons parent Restaurant Brands also reported disappointing earnings per share ($0.53 vs street $0.66) as same store sales fell 11% over year at Tims, 7.9% at Burger King and 5.8% at Popeyes.

American earnings reports overnight were also mixed. Pepsico beat the street ($1.47 vs street $1.46, 5% dividend increase), while Uber posted a slightly worse loss than expected (-$0.54 vs street -$0.52). Walt Disney is scheduled to report after the close today.

US weekly jobless claims were slightly worse than expected both initial (793K vs street 757K) and continuing (4.55M vs street 4.490M). Weekly natural gas storage is due at 11:00 am EDT with the street expecting a 181 BCF drawdown, slightly less than last week’s 192 BCF drawdown.

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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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