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The Week of April 30th to May 6th, 2018 “A Brief Look Back into Tomorrow”

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The Week of April 30th to May 6th, 2018 “A Brief Look Back into Tomorrow”

 

 

 

 

 

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 Commoditiesgold 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.

Posted May 9, 2018

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