The new trading week began on Monday, February 4th with the major North American markets looking somewhat suspect to a correction – to which technical analysts David Tippin & Ron Meisels commented – “We continue to expect that a pullback in this overbought market will occur…” (For a complete copy of this report please contact Rod.Blake@Canaccord.com)
Jerome Powell steps in and takes over the position of Chairman of the U.S. Federal Reserve Board recently vacated by Janet Yellen.
Another marijuana company made an alliance with a retailer as Aurora Cannabis ‘ACB-T’ announced it had agreed to purchase 19.9% of Liquor Stores ‘LIQ-T’ in an all-cash deal of some $103.5-million.
Wells Fargo ‘WFC-N’ shares’ fell by over 9% to US$58.16 after the U.S. Fed imposed further regulatory restrictions on America’s 3rd-largest bank.
The Dow Industrials collapsed by a record1,178-points to erase any gains for the year and close at 24,343.
Conversely – the Volatility Index or VIX skyrocketed up by 20-points to close at a new 2½-year high of 37.32.
Tuesday, February 6th saw the Government of Alberta announce the banning of British Columbian wines in retaliation to the BC Government efforts to stop the Trans mountain Pipeline expansion.
Element Fleet Management ‘EFN-T’ shares’ plunged by almost 29% to $5.67 after the company failed to impress the street with its latest strategic update.
The price of General Motors ‘GM-N’ stock rose by almost 6% to US$41.86 after America’s largest automaker beat analysts’ expectations with its 4th-quarter financials.
The major North American markets closed higher from what proved to be at least a short-term oversold position.
Mawson Resources ‘MAW-T’ shares’ surged up by 30% to $0.56 on Wednesday, February 7th on word that gold mining giant Goldcorp Inc. ‘G-T’ had taken an $8.1-million position in the Finnish based mineral explorer.
The price of Snap Inc. ‘SNAP-Q’ stock surged up by 47% to US$20.67 after the instant messaging company reported better than expected quarterly user and revenue numbers.
Weight Watchers ‘WTW’N’ shares’ rose by 17% to US$73.99 after the dietary company projected larger than expected revenue growth for the next 2-years.
Thursday, February 8th had the Canadian Government make the currents murky resource permitting process even more confusing by announcing it will be introducing a yet unnamed body to oversee the resource industries.
Winter parka maker Canada Goose ‘GOOS-T’ reported quarterly financials the beat analysts’ expectations.
Tesla Inc. ‘TSLA-Q’ shares’ fell by over 8% to US$315.00 after the electric car pioneer reported its largest quarterly loss ever.
Conversely, the price of Twitter Inc. ‘TWTR-Q’ stock rose by 12% to US$30.17 after the electronic communicator posted its first ever quarterly profit.
Friday, February 9th had Statistics Canada report that the economy shed an unexpected 9-year monthly high 88,000 new jobs in January – causing the national unemployment rate to rise by 0.1% to 5.9%.
Giant online retailer and industry disrupter Amazon.com ‘AMZN-Q’ turned its attention to the courier business and announced it is investigating starting its own package pick-up and delivery business that would directly compete with other services such as UPS Parcel Service ‘UPS-N’ and FedEx Corp. ‘FDX-N’.
Petroleum industry consultant Baker Hughes ‘BHGE-N’ reported that the number of active American drilling rigs rose by 29-rigs last week to 975 active drilling rigs. Further north – the number of active Canadian drilling rigs fell by 17-rigs to 375 active drilling rigs.
Expedia Inc. ‘EXPE-Q’ shares’ fell by 15.5% to US$104.00 after the travel services company estimated that its selling and marketing costs would be greater than its growth in revenue.
During the Week – the Dow Industrials, S&P 500 and NASDAQ all sank to respective new 2018 lows of 23,860, 2,581 and 6,777. The Canadian markets fared no better as the TSX Venture dropped to a 2018 year low of 803 and TSX Composite fell to a 5-month low of 15,034. While counterbalancing these downward moves – the VIX soared up to a new 2½ -year high of 35.02
Canada Goose Holdings ‘GOOS-T’ at $48.04, Morneau Shepell ‘MSI-T’ at $23.34 and VersaBank ‘VB-T’ at $7.80 all reached new TSX 52-week trading highs while Alamos Gold ‘AGI-T’ at $6.33, BCE ‘BCE-T’ at $54.44 and Sierra Wireless ‘SW-T’ at $19.06 all dropped to new 52-week trading lows.
For the Week – the Dow Industrials fell by 5.21% to 24,191, with the S&P 500 off by 5.14% to 2,620 and the NASDAQ down by 5.01% to 6,874. To the north – the TSX Composite Index was down by 3.66% to 15,034 while the TSX Venture Exchange gained 0.12% to 813.
With Commodities – gold bullion fell by 1.57% to US$1,316, with copper lower by 4.39% to US$3.05, as crude oil dropped by 9.53% to US$59.21 and natural gas dropped by 8.42% to US$2.61. Overall – the CRB Spot Commodity Index fell by 1.13% to finish the week at 438.
The Canadian dollar fell by 1.27% against its southern counterpart to end the week at US$0.7944.
And the closely watched CBOE Volatility Index or VIX surged higher by 11.37-points to finish the week at a much more nervous level of 28.68.
And Finally – As more and more marijuana figures become public it was of great interest to see Statistics Canada report that the Canadian underground economy illegally exported about $1.2-billion of cannabis in 2017.
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