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A roundup of what The Globe and Mail’s market strategist Scott Barlow is reading today on the Web

Positive signs for the domestic economy were apparent Friday morning. The Globe’s Mike Babad highlighted a clear recovery for the housing market while BMO economist Doug Porter noted some sharp improvement in Canadian wage growth,

“it was the quirky measure in the Labour Force Survey, which suddenly jumped from less than 2% gains to more than 4% y/y increases in average hourly wages. Many brushed this off, since this series is scandalously volatile … But, next, the payroll survey reported a very similar bounce in its fixed-weight hourly measure… It, too, has jumped to the fastest pace since 2010 at over 4%”

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“@SBarlow_ROB BMO: Canadian wage growth spikes” – (research excerpt, chart) Twitter

“‘The housing sector is clearly on the rebound’” – Babad, Report on Business

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Chinese economic data added to global bullishness as manufacturing activity came in stronger than expected. This is very good news for beleaguered resource stocks,

“Chinese manufacturing activity expanded at its fastest pace in two-and-a-half years during October, a private survey showed on Friday, as export orders rose in defiance of trade tensions with the US. The Caixin China General Manufacturing purchasing managers’ index posted a reading of 51.7 during the month, up from 51.4 in September and its highest since February 2017. That marks the third month in a row that the survey has produced a reading above 50, the line which separates expansion from contraction.”

“China Caixin manufacturing PMI hits highest in almost 3 years” – Financial Times (paywall)

“South Korea October exports fall most in 4 years but government says worst may be over” – Reuters

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Counterpoint: Conditions are still terrible for semiconductor demand, “@C_Barraud 🇰🇷 #SouthKorea October #Semiconductors Exports Y/Y: -32.1% v -31.5% prior (11th straight ⬇) ➡ It suggests another weak print for Global Billings in October” – (chart) Twitter

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The potential for U.S. profit downgrades remains a central concern for global investors. Merrill Lynch quantitative strategist Savita Subramanian recently wrote that the earnings revision ratio (ERR – the number of companies raising profit guidance divided by the number lowering forecasts) is now higher outside of the U.S., which is a rare event. "This month, the US one-month ERR (0.49) has dropped below the global ERR (0.65), which is unusual. .. Are the tides shifting? Other signals suggest shifts from the US to other neglected pockets. Our global team notes that the October ratio improved the most in Asia Pac ex-Japan and Emerging Markets, but the ratio fell the most in the US.”

The strategist also noted subtle signs of value stocks outperforming growth stocks. "Strange things are afoot: based on baskets tracking Growth (highest two quintiles of S&P 500 by long-term growth forecasts) vs. Value (lowest two quintiles of the S&P 500 by PE), some Value-biased trends were evident. Growth stocks saw a 0.57 drop in the 1m ERR in Aug - Oct, more than double the Value basket’s ERR decline of 0.27. Moreover, the post-earnings reaction of growth vs. value stocks was equally telling - we saw far less punitive treatment of value stocks”

“@SBarlow_ROB ML on earnings revision ratio - now stronger ex-U.S.” – (research excerpt) Twitter

“Should investors focus more on international stocks?” – BNN Bloomberg

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“ @SBarlow_ROB Is the value thing really happening this time? (ML)” – (research excerpt) Twitter

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Diversion: “The Rescue Mission to Save Civilization From the Big Melt: Ice patch archeologists are racing against the clock to find ancient artifacts dislodged by climate change” – Medium

Column: “Let another investor’s loss become your gain with these fourteen stocks” – Barlow, Inside the Market

Tweet of the Day: “@dbcurren CIBC gives Canada’s economy a “gentleman’s C” “ – Twitter

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