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The Week of July 18th to July 24th, 2016 “A Brief Look Back Into Tomorrow”

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The Week of July 18th to July 24th, 2016 “A Brief Look Back Into Tomorrow”






The new trading week began on Monday, July 18th with investors weighing the facts that while the major North American markets were at multi-year or record highs, the media seemed to be focused on terrorist acts, military coups or police actions around the world.




Wal Mart Stores Inc. (WMT-N) goes head-to-head with Visa (V-N) as the world’s largest retailer announced it will immediately begin to phase out Visa cards as a method of purchases in it 370 Canadian outlets due to what it feels is excessively high service charges.




Ballard Power Systems (BLD-T) caught many by surprise as its share price soared up by almost 44% to $2.59 after the long suffering fuel cell company announced an agreement with China’s Guangdong Nation Synergy Hydrogen Power Technology for a fuel cell stack production operation in that country.




Similarly, the price of ARM Holdings (ARMH-Q) shares’ surged up by over 40% to US$66.06 on word that SoftBank Group had agreed to buy the mobile computing company in an all-cash deal of some US$32-billion.




On Tuesday, July 19th technical analysts David Tippin & Ron Meisels took a look at the market and commented – “After a prolonged period of stalemate in the form of a massive trading range in the S&P 500, it now appears that the bulls are regaining the upper hand. Consolidation and then follow-through from the recent breakout are essential.”




Christmas came early to the shareholders’ of Lucara Diamond (LUC-T) after the African diamond miner declared a special dividend of $0.465 to go along with the company’s regular annual dividend of $0.06.




And the shareholders of Yoho Resources (YO-V) were pleased to see their investment soar up by almost 96% to $0.46 after the junior natural gas producer agreed to a $31.5-million takeover from New York based One Stone Energy Partners.





Conversely, the share price on Netflix Inc. (NFLX-Q) fell by over 13% to US$85.66 after a surge in subscription cancellations ahead of an announce price increase caused the video company to miss the streets’ expectations with its 2nd-quarter financials.




Canadian Pacific Railway (CP-T) announced the passing of the torch on Wednesday, July 20th as efficiency proficient Hunter Harrison will step down as CEO next year and leaving the controls to long time associate and current COO Keith Creel.




The shares’ of Zafgen Inc. (ZFGN-Q) plunged by over 52.5% to US$3.20 after the pharma company announced the suspension of its obesity drug beloranib.




Thursday, July 21stsaw a ray of hope for the oil & gas industry as EnCana Corp. (ECA-T) reported a small but unexpected 2nd-quarter profit.




The share price of Joy Global (JOY-N) rose by almost 20% to US$28.19 on word that the American based underground mining equipment company was being taken over by Japan’s giant heavy equipment company Komatsu in an all-cash deal of some US$2.9-billion.




After being written off for dead during the financial crisis, auto industry giant General Motors (GM-N) reported a record 2nd-quarter profit and better still – raised their guidance for the rest of the year.




Statistics Canada reported that – helped by an increase in auto sector sales – the country’s wholesalers increased their sales by 1.8% in the May to $55.9-billion.




Friday, July 22nd had Statistics Canada report that the nations’ retail sales rose by another 0.2% in May to a record $44.28-billion while the annual inflation rate held steady at 1.5%.




Canadian petroleum giant Suncor Energy (SU-T) officially acknowledged the dangers of climate change by announcing it will strive to reduce its greenhouse gas footprint by 30% by 2030.




While on a related topic – Baker Hughes reported that the active U.S. crude oil drill rig count rose by a 7-month high of 14-rigs last week, bringing the total of active drill rigs to 371 – still well down from the 659 rigs working at this time one year ago.




Golden Dawn Minerals (GOM-V) shares’ surged up by over 33% to $0.40 after the mineral developer signed a US$4-million metal purchase agreement with San Francisco based Rivi Capital in order to advance the company’s Lexington and Golden Crown projects in southern British Columbia.




During the Week – The NASDAQ reached a new 1-year high of 5,100, with the TSX setting a new 1-year high of 14,601, the Venture Exchange climbed to a new 20-month high of 770  and the Dow and S&P 500 established respective new record highs of 18,595 and 2,175. Meanwhile, the VIX fell to a new 1-year low of 11.92.




Ballard Power Systems (BLD-T) at $2.61, Lassonde Industries (LAS.A) at $206.00,  and Restaurant Brands Intl. LP (QSP.UN-T) at $59.50 all reached new TSX 52-week trading highs while DataWind Inc. (DW-T) at $1.24, UrtheCast Corp. (UR-T) at $0.86 and WesternOne Inc. (WEQ-T) at $0.10 all sank to new 52-week trading lows.




For the Week – The Dow Industrials improved by 0.29% to 18,571, with the S&P 500 Index up by 0.60% to 2,175 and the NASDAQ Exchange was ahead by 1.33% to 5,097. To the north, the TSX Composite Index rose by 0.81% to 14,601 and the TSX Venture Exchange gained 0.52% to 770.




With commoditiesgold bullion lost 0.23% to US$1,324, while copper gained 0.45% to US$2.24, as crude oil dropped by 5.19% to US$44.23 and natural gas improved by 0.37% to US$2.74. Overall, the CRB Spot Commodities Index fell by 0.96% to finish the week at 411.




The Canadian dollar fell by 1.31% against the American dollar to end the week at US$0.7607.




And the closely watched CBOE Volatility Index or VIX eased by another 0.69-point to finish the week at a very confident level of11.77.




And Finally – A wanted fugitive was so enthralled with playing his Pokémon GO game that he didn’t notice the game had taken him right to the front door of a Milford, Michigan police station – where he was promptly arrested.


Posted July 27, 2016

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