The new North American trading week began on Monday, April 30th with investors still being whipsawed by the recent pattern of good day – bay day economics. To which technical analysts David Tippin & Ron Meisels commented – “The bull/bear conflict of the past 3-months has been volatile with neither side being able to establish a conclusive up-trend or down-trend.” (For a complete copy of this report please contact Rod.Blake@canaccord.com.)
McDonald’s Corp. ‘MCD-N’ continued to do what it has for years as its stock price rose by almost 6% to US$167.41 after the world’s largest restaurateur reported better than expected 1st-quarter financials.
Andeavor ‘ANDV-N’ shares’ surged up by 13% to US$138.32 after the petroleum refiner agreed to a takeover by like refiner Marathon Petroleum ‘MPC-N’ in a US$23-billion deal that will create the largest American refiner.
The price of Sprint Corp. ‘S-N’ plunged by almost 14% to US$5.61 after the market was not impressed with the telecommunications’ company agreed to be taken over by T-Mobile ‘TMUS-N’ in an all-stock deal of some US$26-billion.
Tuesday, May 1st had Autodata report that American new vehicle sales rose by 60,000 units in April to a seasonally adjusted annual rate of 17.1-million vehicles.
GrubHub ‘GRUB-Q’ shares’ fell by over 8.40% to US$92.64 after the online food delivery firm reported a larger than expected drop in new customer orders.
Northern Dynasty Minerals ‘NDN-T’ granted First Quantum Minerals ‘FM-T’ another 30-day exertion for First Quantum to complete its due diligence pending its $1.35-billion investment in Northern’s massive Pebble copper/gold deposit in Alaska.
The price of Tapestry Inc. ‘TPR-N’ stock fell by almost 12% to uS$47.46 after the handbag maker reported a larger than expected drop in same-store 3rd-quarter sales.
The U.S. Federal Reserve did as expected on Wednesday, May 2nd an left their key interest rate unchanged at 1.50 – 1.75%.
Concordia International ‘CXR-T’ shares’ plunged lower by over 32% to $0.40 after the specialty pharmaceutical company announced it was restructuring its outstanding debt.
Similarly – the price of TC Pipelines ‘TCP-N’ dropped by over 29% to US$25.16 after the company cut its dividend by 35% due to changes in U.S. tax policies.
Conversely – Apple Inc. ‘AAPL-Q’ shares rose by almost 5% to US$176.57 after the technology giant reported record 2nd -quarter revenues and a large stock buy-back program.
Thursday, May 3rd saw Statistics Canada report that the country’s trade deficit for March rose to a record for the month of $4.1-billion.
Canada Post sighted an increase in online shopping in helping the crown corporation to report a profit of $144-million in 2017, well up from the $81-million profit the corporation reported in 2016.
Fitbit Inc. ‘FIT-N’ shares’ fell by 12% to US$4.84 after the physical wellness company failed to impress the market with its 2nd-quarter revenue estimates.
The price to Tesla Inc. ‘TSLA-Q’ dropped by 5.6% to US$284.20 after the electric vehicle manufacturer reported a much larger than expected 2nd quarter loss.
Friday, May 5th had the U.S. Labor Department report their economy created a lower than expected 164,000 new jobs in April and that their unemployment rate dropped by 0.1% to an 18-year low of 3.9%.
Petroleum industry consultant Baker Hughes ‘BHGE-N’ reported that the number of active American drilling rigs rose by another 11-rigs last week to 1,032 active drilling rigs. Further north -the number of active Canadian drilling rigs rose by 1-rig for a total of 86 active drilling rigs.
Fluor Corp. ‘FLR-N’ shares plunged by over 22% to US$45.76 after the giant construction & engineering company reported a disappointing 1st-quarter loss.
The price of Apple Inc. ‘AAPL-Q’ improved by almost 4% to US$183.81 on word that investment guru Warren Buffet’s Berkshire Hathaway ‘BRK.A-N’ had purchased another 75-million shares of the tech giant in the 1st-quarter.
During the Week – the price of crude oil rose to a new 31/3-year high of US$69.76 while lumber reached to a new record high of US$576.50/mbf.
Baytex Energy ‘BTE-T’ at $5.89, Canada Goose ‘GOOS-T’ at $48.51, and Kirkland Lake Gold ‘KL-T’ at $23.84 all reached new TSX 52-week trading highs while Concordia International ‘CXR-T’ at $0.35, Detour Gold ‘DGC-T’ at $9.11, and Rogers Sugar ‘RSI-T’ at $5.29 and all fell to new 52-week trading lows.
With Commodities – gold bullion fell by 0.60% to US$1,315, while copper rose by 0.33% to US$3.08, as crude oil gained 2.44% to US$69.76 and natural gas dropped by 1.81% to US$2.72. Overall – the CRB Spot Commodity Index rose by 0.90% to finish the week at 446.
The Canadian dollar dropped by 0.26% against its southern counterpart to end the week at US$0.7774.
And the closely watched CBOE Volatility Index or VIX was 0.60-point lower to finish the week a little calmer level of 14.80.
For the Week – the Dow Industrials eased lower by 0.20% to 24,263, with the S&P 500 off by 0.26% to 2,663 while the NASADAQ rose by 1.26% to 7,210. In Canada – the TSX Composite improved by 0.38% to 15,729 and the TSX Venture fell by 1.53% to 772.
And Finally – To give some perspective on the size of the global wealth disparity – a recent Oxfam report estimates that just eight of the world’s richest people control more wealth than the poorest half or 3.6-billion of the world’s population.
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