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Stocks Slide Despite Positive Employment News

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US index futures have turned downward this morning with Dow Futures down 0.7% and NASDAQ futures down 1.1%. Overseas markets are also under pressure with the FTSE falling 1.5%, the Dax slipping 0.7%, and the Hang Seng dropping 1.1%. Commodities are also under pressure today with copper down 1.75%, while WTI crude oil is down 0.2%.

These declines come despite a series of positive economic announcements. US ADP private sector payrolls for April were spectacular (950K vs street 650K), which along with better than expected US weekly initial jobless claims (385K vs street 395K and previous 405K), indicates a healthy job market in the US. Meanwhile in Europe, several Service PMI reports beat expectations including Italy (53.1 vs street 52.5) and the UK (62.9 vs street 61.8).

Its a light day for corporate news with volatile trading in meme/Reddit stocks stepping into the vacuum. AMC Theatres is down 8.8% premarket today after soaring 95% yesterday and after the company filed to sell 11 million shares at some point in the future.

Tomorrow brings more North American employment news. US nonfarm payrolls are expected by analysts to rise by 644K, up from 266K last month with today’s US job numbers increasing the potential for a positive surprise. In Canada, a decline of 20K jobs in May is widely expected adding to April’s job losses of 207K as widespread lockdowns maintained their stranglehold on the Canadian economy.  

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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