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Stocks Slide Into Month-End Amid a Flurry of Economic and Earnings News

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The last trading day for July finds stock markets around the world retreating once again. Overseas, the Hang Seng turned back downward, falling 1.3%, while the FTSE and the Dax are both down 0.8%. US index futures are all in the red as well today with NASDAQ futures down 1.2% and Dow Futures down 0.4%. Commodities are also backsliding, particularly Natural Gas which is down 2.2% as we head into the later stages of summer cooling season, while WTI crude oil and copper are both down about 0.2%.

Weakness in the NASDAQ today can be attributed to disappointing results overnight from Amazon.com, which missed street expectations on sales but beat on earnings (EPS $15.12 vs street $12.30, sales $113.0B vs street $115.2B, down 6.9% premarket). Pinterest is down 20.5% premarket after reporting that monthly active users fell by about 5% in Q2 to 454M from 478M in Q1 and was well short of the 482M street estimate.

It’s also a big day for results from the Energy, Consumer Staples and Industrials sectors. Highlights include ExxonMobil ($1.10 vs street $0.99), Chevron ($1.71 vs street $1.59), Caterpillar ($2.60 vs street $2.40), T-Mobile US ($0.78 vs street $0.53), and Procter & Gamble ($1.13 vs street $1.08).

Canada’s GDP declined by 0.3% in May as was expected by investors with most of the country in lockdown that month. Several senior Canadian companies are also reporting today including Restaurant Brands ($0.77 vs street $0.51), and Telus ($0.26 in line with expectations).

In US economic news today, personal spending increased more than expected in June (1.0% vs street 0.7%), outpacing personal income (+0.1% vs street -0.3%). The Fed’s favorite inflation measure Core PCE inflation, increased less than feared (3.5% vs street 3.7% and previous 3.4%. Chicago PMI, a potential leading indicator for Monday’s national manufacturing PMI report, is due at 9:45 am EDT today (previous 66.1).  

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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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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