The new trading week began on Monday, October 31stwith nervous investors clearly expecting more tricks than treats as the calendar moved ever closer to the upcoming American presidential election.
Technical analysts David Tippin & Ron Meisels commented – “The bull market is successfully absorbing selling pressure. While political turmoil seems to be on the increase, the markets are quietly going about their business of preparing themselves for a new upleg.”
Performance Sports Group (PSG-T), the manufacturer of Bauer, Easton and Mission sports equipment through in the towel and filed for bankruptcy protection.
Perhaps sensing a bottom in the petroleum markets, General Electric (GE-N) announced they were acquiring a majority interest in oilfield services company Baker-Hughes (BHI-N) to form the world’s second largest oilfield services company.
Lumber Liquidators (LL-N) shares’ fell by over 16% to US$15.50 after the flooring company failed to impress the street with its 3rd-quarter financials.
The Canadian government started the new month by announcing on Tuesday, November, 1st that they will spend $180-billion over the nest 11-years on infrastructure spending.
J.D. Power reported that all of the ‘big-three’ American automakers all reported a drop in October sales.
Cymat Technologies (CYM-V) shares’ soared up by over 77% to $0.31 after the specialized aluminum company announced a memorandum of understanding with industry giant Aluciol SA to co-market the company’s aluminum foam composite panels.
Wednesday, November 2nd had the Conference Board of Canada report that our consumer confidence fell by 6.3-points in October to 96.7, the largest monthly drop since crude oil first fell below US$30-a-barrel.
The U.S. Fed does as expected and leaves their key interest rates unchanged at 0.25 – 0.5% going into the last week of their federal election.
Aecon Group (ARE-T) shares’ plunged by almost 16% to $14.38 after the contract engineering firm disappointed with its 3rd-quarter financials.
Conversely, the price of Office Depot (ODP-N) rose by 12.5% to US$3.43 after the retailer said it would sell its international business interests and focus on North America.
Ottawa announced on Thursday, November 3rd that they were relaxing the upper allowed limit of foreign ownership for Canadian air carriers from the current 25% to a much more competitive 49%.
exactEarth Ltd. (XCT-T) shares’ rose by 12% to $1.57 after the company arranged a long term satellite contract with the Canadian Department of National Defence.
Meanwhile market darling Facebook (FB-N) had its share price fall by almost 6% to US$119.75 after the social network company warned that its revenue growth may slow in 2017.
And the price of Fitbit Inc. (FIT-N) shares’ plunged by 33.5% to US$8.51 after the fitness monitoring company posted weaker than expected guidance for the 4th-quarter.
Friday, November 4th saw Statistics Canada report that our economy created a better than expected 43,900 new jobs in October which held the unemployment rate steady at 7.0%. To the south, the U.S. Department of Labor reported the American economy created 161,000 new jobs in October which helped to lower their unemployment rate down by 0.1% to 4.9%.
Statistics Canada also reported that the Canadian trade deficit more than doubled in September to $4.1-billion.
Going into the last few days before the U.S. Presidential election – A Bank of America Merrill Lynch survey found that on average fund managers have raised the cash portions of their portfolios to a 15-year high of 5.8%.
Flour Corp. (FLR-N) shares’ fell by 13.5% to US$44.80 after America’s largest engineering and construction company lowered its 2016 profit forecast.
During the Week – the TSX Venture Exchange fell to a 31/2-month low of 760, while the Dow Industrials, S&P 500 and NASDAQ all fell to respective 4-month lows of 17,888, 2,085 and 5,046. Meanwhile the CBOE Volatility Index (VIX) rose to a 4-month high of 22.72.
First Quantum Minerals (FM-T) at $12.81, Parkland Fuel (PKI-T) at $31.77 and TD Bank (TD-T) at $61.03 all set new TSX 52-week trading highs while Alaris Royalty (AD-T) at $19.52, Fission Uranium (FCU-T) at $0.50 and Sears Canada (SCC-T) at $2.53 all fell to new 52-week trading lows.
For the Week – the Dow Industrials fell by 1.50% to 17,888, with the S&P 500 Index down by 1.93% to 2,085 and the NASDAQ Exchange off by 2.77% to 5,046. To the north side of 49 the TSX Composite Index fell by 1.87% to 14,509 and the TSX Venture Exchange dropped by 1.80% to 762.
With Commodities – gold bullion gained 2.23% to US$1,306, with copper up by 3.19% to US$2.26, while crude oil fell by 9.28% to US$44.18 and natural gas dropped by 9.51% to US$2.95. Overall, the CRB Spot Commodity Index rose by 0.49% to end the week at 405.
The Canadian dollar improved by a marginal 0.03% against its American counterpart to finish the week at US$0.7465.
And the closely watched CBOE Volatility Index or VIX rose by 6.59-points to end the week at a much more nervous level of 22.72.
And Finally – As we move ever closer the prime year-end shopping season, a new report by Colliers International suggests that Canadian non-store sales rose in 2014 to $23-billion or 4.7% of the total Canadian retail space.
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