The new trading week began on Monday, January 30th with the markets enjoying their recent multi-month and record highs, but with investors very nervous as new U.S. President Donald Trump does just as he had promised to do during his unprecedented run for election.
Technical analysts David Tippon & Ron Meisels commented – “February and March are shaping up as a prolonged slug-fest between bulls and bears.” (For a complete copy of this report contact ‘Rod.Blake@canaccord.com’.)
Airline stocks drop across the board after the American government places temporary immigration restrictions on seven Muslim nations.
While on the same topic – Starbucks Corp. (SBUX-Q) reported they would hire about 10,000 refugees from 75-countries over the next 5-years.
The Associated Press reported that Volkswagen AG (VOG-GR) with global sales of 10.31-million units has overtaken Toyota Motor Corp. with sales of 10.25-million as the world’s largest automaker.
New Gold (NGD-T) shares’ plunged by over 25% to $3.88 after greater than expected cost overruns were revealed on their Rainy River project in Ontario.
Tuesday, January 31st saw Statistics Canada tell us that, helped by manufacturing, our economy grew in November by a much better than expected 0.4%.
Investment icon Warren Buffet saw opportunity following the recent American presidential election as he states his Berkshire Hathaway (BRK-N) has invested about US$12-billion into the equity markets since early November.
Perhaps he was buying pharmaceutical companies as they collectively shuddered lower after U.S. President Donald Trump once again admonished the companies for what he sees as “astronomical drug prices”.
First Global Data (FGD-V) stock gained over 30% to $0.41 after the electronic payment services company recorded record revenues in the month of December.
Conversely, the share price of Under Armour (UA-N) dropped by almost 23.5% to US$19.22 when the clothing company reported weaker than expected 4th-quarter financials.
The North American markets blew a collective sigh of relief on Wednesday, February 1st after the U.S Fed left their key target interest rate unchanged at 0.50-0.75%.
Cameco Corp. (CCO-T) took another blow in less than a month as the stock price fell by over 11% to $14.70 on word that Japanese utility Tokyo Electric Power was refusing receipt of their scheduled delivery of yellowcake uranium.
Apple Inc. (AAPL-Q) did what was expected as the world’s largest electronics company reported better than expected 1st-quarter financials.
The Noranda Income Fund (NIF.UN-T) shocked investors as its unit price plunged by over 29.5% to $1.66 after the trust suspended its distributions due to unfavourable conditions in the zinc markets.
Thursday, February 2nd has DesRosiers Automotive Consultants report that Canadians bought a record 110,945 new vehicles in January.
The share price of B2Gold (BTO-T), OceanaGold (OGC-T) and some others fell in unison after the Philippine Department of Environment and Natural resources ordered the closer of 29-mining operations in that South-Asian country.
Conversely, the price of Belo Sun Mining (BSX-T) surged up by almost 16% to $1.03 after the Brazilian miner received its construction licence for its Volta Grande Gold Project.
The price of Macy’s (M-N) rose by over 5% on rumour that Canada’s Hudson Bay Co. (HBC-T) was about to make a takeover offer for the iconic American department store retailer.
Friday, February 3rd saw the markets rally after the U.S. Labor Department report that their economy created a much better than expected 227,000 new jobs in January even though their unemployment rate rose by 0.1% to 4.8%.
Industry consultants Baker Hughes report that the number of active America oil & gas drilling rigs increased by another 17-rigs last week to 583 active rigs.
Aurion Resources (AU-V) shares’ shot up by almost 54% to $1.60 after the mineral explorer reported bonanza-grade gold assays from its Risti project in northern Finland.
Meanwhile the price of GoPro Inc. (GPRO-Q) slumped by over 13.5% to US$9.52 after the video company reported a larger than expected 4th-quarter loss.
During the Week – the price of copper rose to a new 11/2-year high of US$2.72-a-pound while the CRB Spot Commodity Index reached a new 2-year high of 436, with the Canadian dollar climbing to a new 5-month high of US$0.7679 and the TSX Venture Exchange establishing a new 5-month high of 819 as the NASDAQ Exchange closed a new record high of 5,667..
Calian Group (CGY-T) at $28.36, EXFO Inc. (EXF-T) at $7.37 and ShawCor Ltd. (SCL-T) at $37.31 all rose to new TSX 52-week trading highs while Metro Inc. (MRU-T) at $38.00, Pershing Gold (PGLC-T) at $3.95 and TereGo Inc. (TGO-T) at $4.08 all sank to new 52-week trading lows.
For the Week – the Dow Industrials fell by 0.11% to 20,071, while the S&P 500 Index gained 0.09% to 2,297 and the NASDAQ Exchange improved by 0.11% to 5,667. Across the line the TSX Composite Index dropped by 0.64% to 15,476 and the TSX Venture Exchange gained 1.11% to 819.
With Commodities – gold bullion rose by 2.52% to US$1,221, with copper down by 2.60% to US$2.62, while crude oil improved by 1.24% to US$53.83 and natural gas fell by 9.23% to US$3.05. Overall, the CRB Spot Commodity Index once again remained unchanged at 433.
The Canadian dollar gained 0.91% against its American counterpart to finish the week at US$0.7671.
And the closely watched CBOE Volatility Index or VIX rose by 0.39-point to end the week at a little more nervous level of 10.97.
And Finally – As many struggled to get to work following Sunday’s Super Bowl football game, Heinz Ketchup (KHC-N) is calling for a U.S. national holiday as a recent Change.org survey found that over 16-million workers either call in sick or just don’t show up for work on the Monday after Super Bowl Sunday and causing some US$1-billion in lost productivity.
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