Stock Market Outlook for May 15, 2020
Stocks closed higher as investors found reason for optimism in last week’s jobless claims report.
*** Stocks highlighted are for information purposes only and should not be considered as advice to purchase or to sell mentioned securities. As always, the use of technical and fundamental analysis is encouraged in order to fine tune entry and exit points to average seasonal trends.
Stocks Entering Period of Seasonal Strength Today:
Subscribers – Click on the relevant link to view the full profile. Not a subscriber? Signup here.
California Water Services Group (NYSE:CWT) Seasonal Chart
Guyana Goldfields, Inc. (TSE:GUY.TO) Seasonal Chart
Washington R E I T (NYSE:WRE) Seasonal Chart
Columbus McKinnon Corp. (NASD:CMCO) Seasonal Chart
Boise Cascade Co. (NYSE:BCC) Seasonal Chart
ProShares UltraShort MSCI Japan (NYSE:EWV) Seasonal Chart
PIMCO 25+ Year Zero Coupon U.S. Treasury Index ETF (NYSE:ZROZ) Seasonal Chart
DaVita Inc. (NYSE:DVA) Seasonal Chart
The Bank of Nova Scotia (TSE:BNS.TO) Seasonal Chart
Allergan plc (NYSE:AGN) Seasonal Chart
Perrigo Co. (NYSE:PRGO) Seasonal Chart
Alamos Gold Inc. (TSE:AGI.TO) Seasonal Chart
Getty Realty Corp. Holding Co. (NYSE:GTY) Seasonal Chart
Horizon Pharma plc (NASD:HZNP) Seasonal Chart
BMO Junior Gold Index ETF (TSE:ZJG.TO) Seasonal Chart
VanEck Vectors Gold Miners ETF (NYSE:GDX) Seasonal Chart
The Markets
Stocks gyrated fairly substantially on both sides of the flatline on Thursday as investors digested the latest read of jobless claims in the US. The S&P 500 Index added 1.15%, maintaining short-term support, on a closing basis, at 2800. The bull-bear battle continues, but the bulls have noticeably become exhausted in recent days, leading to a bearish MACD crossover in the previous day’s session. The 20-day moving average at 2856 is currently being tested as a possible level of resistance, while support at the 50-day moving average is below at 2715.
On the economic front, Statscan released its tally of manufacturing sales for the month of March. The headline print indicated that manufacturing sales in Canada declined by 9.2% in March, which was weaker than the 6.0% decline that was forecasted by analysts. The year-over-year change now sits at –12.7%, down from the –0.9% rate indicated in the last report. Stripping out the seasonal adjustments, sales of goods manufactured actually increased by 1.9% in March, which is significantly weaker than the 13.7% rise that is average for the third month of the year. The year-to-date change is now down by 1.6% through the end of the first quarter, which is a significant negative divergence compared to the 12.3% increase that is average. We provided further comments to subscribers on what is performing well in the economy and what is not, and how to invest accordingly.
Also on the economic front, CASS Information Systems released its monthly shipping gauge for April. Manufacturing and consumer activity are the heartbeat of the economy and transportation is the circulatory system, connecting each piece of the economy into one. As a result, it tends to be a leading indicator for the economy and the equity market. We sent out insight to subscribers intraday. Subscribe to see what this indicator is saying about the economy now.
Sentiment on Thursday, as gauged by the put-call ratio, ended close to neutral at 0.96.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
| Sponsored By... |
|
