The new North American trading week began on Monday, August 13th with investors’ attention fully focused on the deteriorating state of the Turkish economy.
The Canada Pension Plan Investment Board reported its net assets rose by 1.8% in the 2nd-quarter to $366.6-billion.
Trinidad Drilling ‘TGD-T’ shares’ rocketed up by over 15.5% to $1.76 after fellow petroleum driller Ensign Energy Services ‘ESI-T’ offered to take over the company in an all-cash deal of some $947-million.
Gold bullion dropped by $20 to US$1,200-an-ounce and gold stocks fall accordingly as the devaluation of the Turkish lira weighed on the world’s oldest currency.
Gemphire Therapeutics ‘GEMP-Q’ stock fell by almost 8% to US$1.66 after the phrenetical company terminated its Phase II Fatty Liver Disease study.
A Bank of America Merrill Lynch survey announced on Tuesday, August 14th that fund managers are currently holding a 2-year high 19% overweight position in U.S. stocks and a 17-year high 67% of fund managers felt that the United States was the most favorable region for corporate profit expectations.
Parkland Fuel Corp. ‘PKI-T’ announced it was purchasing Rhinehart Oil Co. – a distributor and marketer of petroleum products in Utah, Colorado, Wyoming and New Mexico.
Similarly – Scotiabank ‘BNS-T’ announced it had acquired Dominican Republic based Banco Dominicano del Progresso making Scotiabank the 4th-largest full-service bank in the Caribbean country.
Stornaway Diamond Corp. ‘SWY-T’ shares’ fell by 7% to $0.40 after the Quebec based diamond miner failed to impress investors with its 2nd-quarter financials.
And the price of Imperial Metals ‘III-T’ stock dropped by 11% to $0.99 after the British Columbia based coper/gold miner reported its 2nd-quarter financials.
Wednesday, August 15th had the U.S. Commerce Department report their country’s retail sales rose in July by a better than expected annualized 0.5%.
Meanwhile – the Canadian Real Estate Association reported that the average price of a Canadian home rose by 1% in the past year to $481,500.
Most investment eyes were on Canopy Growth ‘WEED-T’ as Canada’s largest marijuana company shares’ soared up by over 31% to $42.20 on word that liquor giant Constellation Brands ‘STZ-N’ was investing another $5-billion in Canopy.
Macy’s Inc. ‘M-N’ stock dropped by 16% to US$35.15 after the retailer’s 2nd-quarter financials fail to live up to analysts’ expectations.
Similarly – Tesla Inc. ‘TSLA-Q’ shares fell by 2.5% to US$338.69 on word that regulators were looking to see if the company’s Chairman’s surprise Twitter announcement about “Going private at $420” broke any security regulations.
Thursday, August 16th saw Tesla Inc. ‘TSLA-Q’ in the media’s sights once again on word that the world’s premier electric auto company was suing the Province of Ontario over the province’s announced intention of eliminating its cash rebate on the sales of electric vehicles.
Walmart Inc. ‘WMT-N’ stock rise by over 9% to US$98.64 after the world’s largest retailer impressed the street with its 2nd-qurter financials.
And Cisco Systems ‘CSCO-Q’ shares’ increased by 3% to US$45.16 after the communications giant’s 2nd-quarter results beat analyst’s expectations.
Statistics Canada reported on Friday, August 16th what most consumers already knew – that the country’s inflation rate rose in July to a 7-year high of 3.0%.
Innovation, Science and Economic Development Canada said it will be reviewing Constellation Brands’ ‘STZ-N’ investment in Canopy Growth ‘WEED-T’ as it may result in Canada’s largest marijuana company being taken over by a foreign entity.
Petroleum industry consultant Baker Hughes ‘BHGE-N’ reported that the number of active American drilling rigs remained unchanged last week at 1,057 active drilling rigs. Up north – the number of active Canadian drilling rigs rose by 3-rigs to 212 active drilling rigs.
Tesla Inc. ‘TSLA-Q’ shares’ fell by another 9% to US$305.50 as the ramifications of Elon Musk’s unauthorized “Taking the company private at $420” tweet set in.
During the Week – gold bullion fell to a new 1½-year low of US$1,883-an-ounce, bringing the CRB Spot Commodity Index down to a 12/3-year low of 414 and dragging the TSX Venture Exchange down to a new 2 -year low of 668.
Canfor Pulp Products ‘CFX-T’ at $28.06, Parkland Fuel Corp. ‘PKI-T’ at $40.97 and Westshore Terminals Investment Corp. ‘WTE-T’ at $26.91 all rose to new TSX 52-week trading highs while Argonaut Gold ‘AR0-T’ at $1.93, Mountain Province Diamonds ‘MPVD-T’ at $2.68 and Pizza Pizza Royalty Corp. ‘PZA-T’ at $9.98 all fell to new 52-week trading lows.
For the Week – the Dow Industrials rose by 1.41% to 25,669, as the S&P 500 gained 0.60% to 2,850 while the NASDAQ fell by 0.29% to 7,816. Across the line – the TSX Composite was down a marginal 0.02% to 16,324 and the TSX Venture dropped by 2.31% to 687.
With Commodities – gold bullion fell by 2.30% to US$1,191, as copper lost 2.55% to US$2.67, while crude oil dropped by 2.43% to US$64.60 and natural gas remained unchanged at US$2.95. Overall, the CRB Spot Commodity Index lost 1.90% to end the week at 414.
The Canadian dollar gained 0.63% against its American counterpart to finish the week at US$0.7655.
And the closely watched CBOE Volatility Index or VIX dropped by 0.51-point to end the week at a slightly more calmer level of 12.65.
And Finally – Although we here tend to think our housing is expensive – turns out we are not even close as – a recent Mercer Cost of Living Survey found that Hong Kong had the world’s highest cost of living – while Vancouver and Toronto were a distant 24th.
And Finally, Finally – The Week is taking a summer break. If all goes according to plan this commentary will return on or about Monday, September 10th.
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