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US Q2 GDP, Earnings, Fed and Infrastructure In Focus

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US index futures are generally positive varying between flat for NASDAQ futures to up 0.4% for Dow futures with the Dow bouncing back from yesterday’s 0.4% decline and the NASDAQ consolidating yesterday’s 0.7% gain. The Fed continued to support markets yesterday with upbeat talk on the economy but not committing to cutting stimulus in the near term. The central bank also formalized ongoing support of money market liquidity by entrenching two new ongoing repo facilities totaling $500B. On the fiscal support side, meanwhile, Congress appears to be moving forward with a $550B infrastructure spending program that both parties have agreed to support.

The US announced an even stronger than expected Q2 GDP report (6.1% vs street 5.4% and previous 4.3%) this morning, which indicates wider reopenings helped to accelerate the economic recovery.      US weekly jobless claims were mixed, improving from last week, but not as much as the street had hoped. (400K vs street 380K and previous 419K)

It’s another big day for earnings but results have been a bit more mixed. Ford posted a surprise profit (+$0.13 vs street -$0.03) and Qualcomm ($1.92 vs street $1.68) handily beat expectations. On the other hand despite beating the street on earnings, Facebook ($3.61 vs street $3.03) and Paypal ($1.15 vs street $1.12) are down in premarket action after posting soft guidance.

Amazon.com headlines another large slate of companies reporting after the close today followed by a number of heavyweights reporting tomorrow morning including ExxonMobil, Chevron, Caterpillar and Mastercard.

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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