The new trading week began on Monday, October 17th with the North American markets seemingly stuck in very narrow trading ranges and investors looking for catalysts that might break the gridlock.
The Canadian media establishment was shaken with the news that Rogers Communications (RCI.B-T) President & CEO Guy Lawrence was suddenly stepping down to be replaced in the near future by ex-TELUS (T-T) CEO Joe Natale.
Large pension plans continue to migrate into the private equity space as noted by the Ontario Teacher’s Pension Plan (OTPP) announcement it had purchased the Canadian wine business of Constellation Brands (STZ-N) in an all-cash deal of some C$1.03-billion.
While with purchases – Statistics Canada reported that foreigners bought a record $108.1-billion of Canadian stocks, bonds and money market instruments in the first 8-months of 2016.
Inca One Gold (IO-T) shares’ surged up by 37% to $0.43 after the company offered a stellar operational update from its Cala One gold mine % smelter complex in Peru.
Tuesday, October 18th had technical analysts David Tippin & Ron Meisels comment – “This lengthy and great bull market is going through a necessary correction. The end-game of this correction period has arrived and it may be a volatile one as a fully oversold condition is reached. But the bull will recover its strength and we still expect to see new highs before year-end.” (For a complete copy of this report please contact ‘Rod.Blake@canaccord.com’.)
Statistics Canada reported the country’s manufacturing sales rose by a better than expected 0.9% in August, the third straight monthly gain for this sector.
The shareholders of Callinex Mines (CNX-V) were pleased to see their investment soar up by almost 53% to $0.55 after the mineral exploration company announced a new high-grade zinc, gold, silver & copper discovery on its Pine Bay project near Flin Flon, Manitoba.
Netflix Inc. (NFLX-Q) shares’ surged up by 19% to US$118.86 after the online media company impressed the market with its 3rd-quarter financials and guidance for the rest of the year.
The Bank of Canada did as expected on Wednesday, October 19th and left the country’s key lending rate unchanged at 0.5% the same level it’s been at since July, 1015.
China’s National Bureau of Statistics reported the world’s second largest economy grew at an expected 6.7% in the 3rd-quarter.
While staying with China – Starbucks Corp. (SBUX-Q) announced it expects to increase its presence from the current 2,300 outlets to 5,000 outlets in that Far East country by the year 2021.
Canaccord’s Morning Coffee – commenting on the confusion over the current record low price of uranium – reported that there are 447 nuclear reactors in operation globally, with another 59 under construction and an additional 168 firmly ordered or planned.
Petroleum service giant Halliburton Co. (HAL-N) in turning a surprise 3rd-quarter profit noted that the oil producers are once again beginning to ramp up operations.
Thursday, October 20th saw the shareholders’ of DragonWave Inc. (DWI-T) smiling as their investment soared higher by 91% to $5.65 on word that telecom giant Sprint (S-N) had selected DragonWave’s microwave equipment for network deployment.
Conversely, eBay Inc. (EBAY-Q) shares’ fell by almost 11% to US$29.00 after the online auctioneer lowered its revenue forecast for the key upcoming holiday season.
The International Organization of Vine and Wine reported that for the second consecutive year, Italy retained its position as the world’s largest wine producing country with a total volume of 48.8-million hectolitres.
North American petroleum exploration continued its slow but steady recovery as on Friday, October 21st whenBaker Hughes reported the number of active American oil rigs increased by 11 last week to bring the total to 443 active rigs. Meanwhile, on the Canadian side, Precision Drilling announced they were hiring back 1,000 employees due to increased drilling activity.
The price of Concordia International (CXR-T) stock surged up 14% to $5.98 on word that founder, chairman and CEO Mark Thompson was leaving the compromised pharmaceutical company.
Microsoft Corp. (MDFT-Q) shares’ rose to a record high of US$59.72 after the software giant handily beat the street’s expectations with its 3rd-quarter financials and better yet raised its guidance for the rest of the year.
Telecommunications giant AT&T Inc. (T-N) surprises the market by announcing a take-over of media giant Time Warner Inc. (TMX-N) in an all-cash deal of some US$85.4-billion.
During the Week – Crude oil rose to a 15-month high of US$51.58/bbl and coincidentally, the TSX Composite Index also rose to a 15-month high of 14,939. Going the other way – the Canadian dollar fell to a 7-month low of US$0.7501.
Canopy Growth (CGC-T) at $7.08, Oil Sands Sector Fund (OSF.UN-T) at $4.60 and Teck Resources (TCK.B-T) at $27.45 all established new TSX 52-week trading highs while Airboss of America (BOS-T) at $12.65, FP Newspapers (FP-T) at $0.13 and VBI Vaccines (VBV-T) at $3.65 all sank to new 52-week trading lows.
For the Week – the Dow Industrials rose by a marginal by 0.04% to 18,146, with the S&P 500 Index ahead by 0.38% to 2,141 and the NASDAQ Exchange up by 0.82% to 5,257. To the north, the TSX composite Index gained 2.43% to 14,939 and the TSX Venture Exchange rose by 2.33% to 791.
With Commodities – gold bullion rose by 0.96% to US$1,268, with copper down by 0.95% to US$2.09, while crude oil gained 0.30% to US$50.90 and natural gas fell by 3.86% to US$3.49. Overall, the CRC Spot Commodity Index remained unchanged at 399.
The Canadian dollar sank by 1.38% against its American dollar to end the week at US$0.7501.
And the closely watched CBOE Volatility Index or VIX dropped by 2.74-points to finish the week a much calmer level of 13.38.
And Finally – After three decades of flying their blimps, MetLife Inc. is dropping Snoopy as their mascot as the insurer moves away from the retail insurance space to focus on business group coverage.
And Finally, Finally – The Week is taking a week away to travel east to see clients and family before the prairie winter sets in. If all goes well this publication will reappear once again on or about Monday, November 7th.
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