Equity Clock

Stock Market Outlook for October 8, 2020

Job openings fell back in August as opportunities were filled and the desire of businesses to expand in this pandemic was limited.

 

 

 

*** 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.

Corning, Inc. (NYSE:GLW) Seasonal Chart

Boralex, Inc. (TSE:BLX.TO) Seasonal Chart

Lucara Diamond Corp. (TSE:LUC.TO) Seasonal Chart

Janus Henderson Group plc (NYSE:JHG) Seasonal Chart

Signature Bank (NASD:SBNY) Seasonal Chart

LendingTree, Inc. (NASD:TREE) Seasonal Chart

Ternium SA (NYSE:TX) Seasonal Chart

Investors Title Co. (NASD:ITIC) Seasonal Chart

Spirit Airlines, Inc. (NYSE:SAVE) Seasonal Chart

 

 

The Markets

Stocks rebounded on Wednesday as President Trump suggested that a piecemeal approach to enacting further stimulus may be possible.  The S&P 500 Index gained 1.74%, reversing the prior session’s loss attributed to doubts that a stimulus bill was possible before the election.  The benchmark retook levels above its 50-day moving average and continued the short-term positive trend that began in the last week of September.  In the Thursday session, investors will likely be taking their cues from the outcome of the vice presidential election debate as investors place their bets on who will take the top office when the votes are cast in less than one month’s time.  Material and industrial stocks topped the leaderboard during the Wednesday session as the pro-cyclical bent continues.

On the economic front, a report on Job Openings and Labor Turnover was released during Tuesday’s session.  The headline print of August’s report indicated that job openings declined by 3.0% to 6.493 million in this summer month.  Analysts were expecting a decline of 6.7% to 6.25 million.  The past few months have been the first time in years that unemployment has surpassed the number of openings.  As of August’s employment situation report, there were 13.5 million individuals that were declared unemployed, according to the Bureau of Labor Statistics, providing a ratio of unemployed to openings of over 2 to 1.  Stripping out the seasonal adjustments, job openings actually declined by 5.6% in August, which is weaker than the 3.9% decline that is average for the month.  The year-to-date change through the end of August is now higher by 11.2%, which is about half of the 23.2% increase that is average through this point in the year.  We sent out further insight to subscribers intraday.  Subscribe now.

Sentiment on Wednesday, as gauged by the put-call ratio, ended bullish at 0.76.

 

 

 

 

Seasonal charts of companies reporting earnings today:

 

 

S&P 500 Index

 

 

TSE Composite

Sponsored By...