The new North American trading week began on Monday, October 2nd with the U.S. major markets still at or near record highs while the Canadian counterparts strive to play catch-up.
To which technical analysts David Tippin & Ron Meisels commented – “It’s steady as we go for the bull market. Toronto’s renewed strength is a further sign of how comprehensive the overall bullish impulse is in international markets…any market weakness is an opportunity to invest in strong sectors and stocks.” (For a complete copy of this report please contact Rod.Blake@canaccord.com)
Quarterhill Inc. (QTRH-T) shares’ surged up by 22% to $2.00 after the company’s 3rd-quarter financials were well ahead of analyst expectations.
And the price of Endocyte Inc. (ECYT-Q) stock rocketed up by 159% to US$3.65 on word that the company’s experimental prostate cancer treatment was given the go-ahead for Phase 3 clinical trials.
Tuesday, October 3rd had the price of DHX Media (DHX.B-T) stock rise by 8% to $5.08 after the broadcasting company announce it was seeking strategic alternatives including the sale of part or all of the company in order to maximize shareholder value.
Delta Airlines (DAL-N) shares’ rose by over 6.5% to US$51.26 after company forecast an improved outlook for 3rd-quarter revenue.
General Motors (GM-N) reported their vehicle sales for September increased by 12% over the same month one year ago to 279,397.
Mylan N.V (MYL-N) shares’ surged up by over 16% to US$5.28 on Wednesday, October 4th on word the U.S. Food and Drug Administration (FDA) had approved the pharmaceutical company’s generic multiple sclerosis drug.
Office Depot (ODP-N) shares’ plunged by almost 18% to US$3.77 after the retailer lowered its sales guidance for the rest of 2017.
Thursday, October 5th saw TransCanada (TRP-T) announce they were withdrawing their applications for the highly controversial Energy East Pipeline and Eastern Mainline oil and natural gas projects.
Meanwhile – the U,S. Energy Information Administration (EIA) reported their country’s oil exports have now reached an average daily record high of 1.98-million barrels per day.
A recent RBC Capital Markets study finds that Canada’s pension plans are getting more exposed to real estate as their allocations to that sector rose from 9.7% to 13.3% in the past 10-years while their exposure to equities has dropped from 45.2% to 37.8% in the same time period.
Constellation Brands (STZ-N) stock rose by 4% to US$209.27 after the liquor manufacturer and distributor beat analyst’s expectations with its quarterly financials for a ninth consecutive quarter.
Friday, October 6th saw Statistics Canada report the country created a less than expected 10,000 new jobs in September while the unemployment rate held steady at a 9-year low of 6.2%.
Meanwhile the U.S. Labor Department reported their workforce fell by an unexpected 33,000 workers in September, but their unemployment rate dropped to a 16-year low of 4.2%.
Petroleum industry analyst Baker Hughes (BHGE-N) reported that the number of active American oilfield drilling rigs dropped by 4-rigs last week to 936 active rigs. The number of Canadian drilling rigs also dropped by 4-rigs to 209 active drilling rigs.
Aritzia Inc. (ATZ-T) shares’ fell by almost 6% to $13.38 after the women’s casual wear retailer failed to impress the street with its 2nd-quarter financials.
The Canadian markets traded quietly going into their Thanksgiving holiday long weekend.
During the Week – the TSX Venture Exchange rose to a 4-month closing high of 788 while the TSX Composite Index reached a new 5-month closing high of 15,776. Down south – the Dow Industrials, S&P 500 and NASDAQ all traded up to respective new record high closes of 22,776, 2,552 & 6,590. Meanwhile the VIX dropped to a new record low of 9.19.
Jamieson Wellness (JWEL-T) at $20.01, Taiga Building Products (TBL-T) at $1.65 and WestJet Airlines (WJA-T) at $27.50 all reached new TSX 52-week trading highs while Difference Capital (DCF-T) at $3.29, Granite Oil (GXO-T) at $3.14 and Teranga Gold (TGZ-T) at $2.75 all sank to new 52-week trading lows.
For the Week – the Dow industrials rose by 1.65% to 22,774, with the S&P 500 Index ahead by 1.19% to 2,549 and the NASDAQ Exchange up by 1.45% to 6,590. To the home of hockey north – the TSX Composite index gained 0.59% to 15,728 and the TSX Venture Exchange was ahead by 0.90% to 788.
With Commodities – gold bullion fell by 0.62% to US$1,277, while copper gained 2.36% to US$3.03, as crude oil dropped by 4.57% to US$49.31 and natural gas was off by 4.65% to US$2.87. Overall, the CRB Spot Commodity Index rose by 0.70% to finish the week at 430.
The Canadian dollar was off by 0.55% against its American counterpart to end the week at US$0.7974.
And the closely watched CBOE Volatility Index or VIX rose by a marginal 0.02-point to finish the week at a still very calm level of 9.53.
And Finally – As we hear more and more about the oncoming onslaught of sell driving vehicles – it was of great interest to see that according to a recent DesRosiers Automotive
Consultants’ survey – while about 50% of Canadians said they would trust autonomous vehicles – only about 30% of them would consider replacing their current ride to buy one.
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