The new trading week begins on Monday, October 5th with twelve countries announcing they have signed the historic Trans-Pacific Partnership free trade agreement that will eventually see tariffs and duties reduced or eliminated on US$27.5-trillion or 40% of the world’s gross domestic product.
The oil sector suddenly came to life and the shares’ of Canadian Oil Sands (COS-T) surged up by over 55% to $9.60 when the Syncrude bitumen producer received an unsolicited $6.6-billion all-stock takeover offer from its Syncrude production partner Suncor Energy (SU-T).
Rubicon Minerals (RMX-T) shares’ plunged by 33% to $0.67 on word that CEO Michael Lalonde had abruptly left the company.
And the price of Spark Therapeutics (NWL-N) rose by over 20.6% to US$52.91 on word the company’s gene therapy for rare, inherited forms of blindness had met the goals of a late-stage study.
Tuesday, October 6th began with the International Monetary Fund (IMF) sighting low commodity prices in reducing Canada’s 2015 gross domestic product or GDP forecast down from 2.2% to only 1.0%.
Meanwhile, the strong American dollar seems to be affecting trade as the U.S. Commerce Department reported their trade deficit increased by 15.6% in August to US$48.3-billion.
Technical analysts David Tippin & Ron Meisels – “It is crucial to keep an open mind about the markets until there is confirmation that either bulls or bears are firmly back in the driver’s seat.” (For a complete copy of this report contact email@example.com.)
The shares’ of American Apparel (APP-N) plunged by over 73% to just US$0.03 when the long suffering clothier filed for Chapter 11 bankruptcy protection.
Canexus (CUS-T) shares’ surged up by almost 25.5% to $1.48 on word the chemical producer had agreed to $932-million takeover offer from energy services company Superior Plus (SPB-T).
The strong U.S. dollar affected two more companies on Wednesday, October 7th as both Nu Skin Enterprises (NUS-N) and Yum Brands (YUM-N) both sighted a strong dollar in their reporting of weaker than expected quarterly results.
Teck Resources (TCK.B-T) added an immediate US$610-million cash injection to their somewhat stressed balance sheet when the miner agreed to a forward silver streaming agreement with mining finance company Franco-Nevada (FNV-T).
And the share price of Freeport-McMoran (FCX-N) rose by almost 10% to US$13.01 on word the copper miner had agreed to put two of billionaire Carl Icahn’s associates on their board of directors.
The strong U.S dollar effecting earnings became even more commonplace on Thursday, October 8th as Domino’s Pizza (DPZ-N) also cites the rising greenback for their less than expected 3rd-quarter financials.
BioMed Reality Trust (BMR-N) units surged up by over 8.6% to US$23.45 on word the real estate trust had agreed to a US$8-billion buyout from Blackstone Group (BX-N).
Controversial flooring company Lumber Liquidators (LL-N) pleaded guilty to importing illegally harvested timber from far eastern Russia.
The Canadian dollar continued to improve on Friday, October 9th after Statistics Canada reported the country created a better than expected 12,100 new jobs in September, while the unemployment rate edged up by 0.1% to 7.1%.
Much of the economic strength came from the housing industry as the Canada Mortgage and Housing Corp. reported new home starts rose by over 15,000 units in September to a 3-year seasonally adjusted annual high of 230,701 units.
Conversely, the German Economics Ministry reported their all important manufacturing orders fell by an unexpected 1.8% in August. (One can’t help but wonder how much Volkswagen AG (VLKAY) diesel engine issues weigh on this number.)
The CRB Spot Commodities Index fell to a new 6-year low of 394.
Boyd Group Income Fund (BYD.UN-T) at $69.43, Just Energy Group (JE-T) at $9.05 and Silver Standard Resources (SSO-T) at $10.02 all set new TSX 52-week trading highs, while Akita Drilling (AKT.B-T) at $8.60, Danier Leather (DL-T) at $2.55 and The Second Cup (SCU-T) at $2.35 all set new 52-week trading lows.
For the Week – The Dow Industrials gained 3.72% to 17,085, with the S&P 500 Index ahead by 3.28% to 2,015 and the NASDAQ Exchange up by 2.59% to 4,830. To the north, the TSX Composite Index rose by 4.68% to 13,964 and the TSX Venture Exchange gained 4.94% to 552.
With commodities – gold bullion improved by 1.93% to US$1,157, with copper up by 3.86% to US$3.86, while crude oil rose by 8.78% to US$49.54 and natural gas gained 2.86% to US$2.52. Overall, the CRB Spot Commodity Index fell by 1.20% to finish the week a 394.
The Canadian dollar rose by 0.7% against the American dollar to end the week at US$0.7725.
And the closely watched CBOE Volatility Index or VIX fell by 3.86-points to finish the week at a much calmer level of 17.08.
And Finally – A recent U.S. Federal Reserve Board study found that couples that have high credit scores tend to stay together much longer than those couples where one or more of the two have a low credit score. (So pay those bills on time and enjoy a long relationship.)
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