Equity Clock

Stock Market Outlook for October 5, 2020

S&P 500 Index posts its first weekly gain in five weeks, despite headlines relating to the Trump coronavirus diagnosis.

 

 

 

*** 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:

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AKSteel Holding Corp. (NYSE:AKS) Seasonal Chart

International Paper Co. (NYSE:IP) Seasonal Chart

Chorus Aviation, Inc. (TSE:CHR.TO) Seasonal Chart

Pan American Silver Corp. (TSE:PAAS.TO) Seasonal Chart

Uranium Participation Corp. (TSE:U.TO) Seasonal Chart

Yellow Media (TSE:Y) Seasonal Chart

Progress Software Corp. (NASD:PRGS) Seasonal Chart

Trex Co., Inc. (NYSE:TREX) Seasonal Chart

TTM Technologies, Inc. (NASD:TTMI) Seasonal Chart

Resolute Forest Products Inc. (TSE:RFP.TO) Seasonal Chart

Perkinelmer, Inc. (NYSE:PKI) Seasonal Chart

S&P Global Inc. (NYSE:SPGI) Seasonal Chart

iShares MSCI Germany ETF (NYSE:EWG) Seasonal Chart

 

 

The Markets

Stocks dipped on Friday, pulling back following headlines that revealed Donald Trump had tested positive for the coronavirus.  The S&P 500 Index fell by almost one percent, gapping back below its 50-day moving average.  The benchmark managed to close off of the lows of the day that followed the headline shock as investors monitored the prospect of additional economic stimulus, but short-term gap resistance charted at Friday’s open capped the reflex reaction intraday.  Reaction to levels around the convergence of major moving averages at the 20 and 50-day continues to be closely monitored given the intermediate-term implications that would result from a rejection at this zone.  The market remains heavily dependent on the headlines, making any near-term bets a gamble.

The headline relating to the Trump diagnosis overshadowed the results of the employment report released ahead of Friday’s session.  The Bureau of Labor Statistics indicates that 661,000 payrolls were added last month, which was weaker than the consensus analyst estimate that called for an increase of 894,000.  The unemployment rate dropped from 8.4% to 7.9%, which places the metric back inline with values that are typical coming out of an economic recession.  Average hourly earnings, meanwhile, increased by 0.1%, which is weaker than the 0.2% increase that was forecast.  Stripping out the seasonal adjustments, payrolls actually increased by 1.137 million, or 0.8%, in September, which is twice as strong as the 0.4% increase that is average for this time of year.  The year-to-date change is now down by 7.2%, or 7.4% below the seasonal average trend through the first three-quarters of the year.  This is the weakest performance through this point in the year since 1945, amidst the end of the Second World War.  We sent out further insight to subscribers intraday.  Subscribe now to access our intraday reports within our report archive.

Sentiment on Friday, as gauged by the put-call ratio, ended bullish at 0.90.

 

 

Seasonal charts of companies reporting earnings today:

• No significant earnings scheduled for today

 

S&P 500 Index

 

 

TSE Composite

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