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Stocks Climb as Several US Earnings Reports Beat The Street

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Yesterday’s rebound in North American markets continued through overseas trading sessions overnight. Today, positive earnings reports from some of the largest US companies have kept the rally going. The FTSE is up 1.3% today while the Dax is up 0.5%.

Dow Industrials member companies Coca-Cola (EPS $0.68 vs street $0.56 and Sales $10.1B vs street $9.3B, sales back above 2019 levels in some markets), Johnson & Johnson (EPS $2.48 vs street $2.27, sales $23.3B vs street $22.2B), and Verizon ($1.37 vs street $1.30) have all exceeded expectations with today’s results. Other US companies posting positive numbers include Chipotle Mexican Grill ($7.46 vs street $6,52), Intuitive Surgical ($3.92 vs street $3.07), and Harley Davidson ($1.33 vs street $1.17). Mattress maker Sleep Number, however, missed badly ($0.88 vs street $0.16, down 12.1% premarket).

Last night, Netflix posted mixed results with net subscriber additions beating analyst estimates (1.54M vs street 1.19M) but EPS missing ($2.97 vs street $3.16). Netflix’s disappointing numbers appear to be dragging on NASDAQ futures this morning, which are down 0.3%, compared with a gain of 0.3% for Dow futures with three of its thirty member companies posting strong results.

Signs of investor fears easing a bit can also be seen in commodities and cryptocurrencies climbing while havens like US bonds have levelled off and gold has declined 0.5%. WTI crude oil is up 1.25% today, shrugging off a 0.8 mmbbl build in weekly US API inventories. DOE inventories are due at 10:30 am EDT today (street -4.4 mmbbl drawdown). Meanwhile, Bitcoin has regained the $30,000 level with a 5.5% gain.  

SIA Wealth In The Media

Chief Market Strategist Colin Cieszynski recently appeared on BNN Bloomberg where he discussed recent weakness in equity and energy markets, relative strength and tactical rotation across asset classes.  

https://www.bnnbloomberg.ca/video/markets-have-been-moving-into-a-series-of-rolling-take-downs-colin-cieszynski~2244785

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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