“Remember That You Are Absolutely Unique, Just Like Everyone Else” -Margaret Mead

 

Mining Stocks Take TSX Higher

The Toronto stock market erased early losses to close higher Friday as investors bought into beaten-down mining stocks. The S&P/TSX composite index closed 67.56 points higher at 15,625.73. The Canadian dollar was down 0.22 of a cent at 91.97 cents US amid data that also showed stronger than expected Canadian economic growth. U.S. indexes were modestly higher while traders played it cautious going into the long Labour Day weekend amid fears of a wider Russian incursion into Ukraine and a big letdown in U.S. consumer spending data. The Dow Jones industrials climbed 18.88 points to 17,098.45 as other data showed consumer spending dropped 0.1% last month, against the gain of 0.3% that generally had been expected, with weakness most pronounced in the auto sector. The Nasdaq ran ahead 22.57 points to 4,580.27 and the S&P 500 index was up 6.63 points to 2,003.37. Toronto and New York markets both gained ground this past week. The Dow industrials posted a 97- points or 0.57% advance, while the TSX gained 90 points or 0.6%, led by consumer staples, industrials and telecoms. But the TSX was held back by the financial sector, down 1.15% this week despite a steady parade of earnings news from the big Canadian banks that largely beat expectations.

 

Canadian Economy Expands At Fastest Rate in Nearly 3 Years

Canadians sent the economy growing at an annual pace of 3.1% in the second quarter of this year. Statistics Canada says the sharp increase in the gross domestic product was the strongest growth rate in nearly three years and compared with a 4.2% rise in GDP south of the border. The jump came as the agency updated its result for the first quarter to an annual pace of 0.9% compared with an earlier reading of 1.2% in the first three months of the year. Economists had expected a growth rate in the second quarter of 2.7%. On a monthly basis, the Canadian economy grew in June by 0.3% compared with economist expectations for growth of 0.2%.  Statistics Canada said there was growth in every sector during the quarter, save for non-profit institutions serving households. Consumers led the increase, with household consumption up by 0.9% for the three month period ended June 30. Canadians spent 1.2% more on goods in the second quarter, and 0.7% more on services. Spending on housing showed a marked increase with investment in residential structures up 2.9% by quarter and home ownership transfer costs up by a full 9.0% after two previous quarters of decline.  Exports were also up by 4.2% in the second quarter — the strongest performance since the third quarter of 2011 — after declining by 0.2% in the first three months of the year.  Significant increases were seen in exports of vehicles, farm and fishing products, forestry products and packaging materials.  As well, business capital spending was up by 0.8% after two consecutive quarterly declines.

 

Market Update August 29 2014

The TSX closed at 15626, up 90 points or 0.58% over the past week. YTD the TSX is up 14.71%.

The DOW closed at 17099, up 98 points or 0.58% over the past week. YTD the DOW is up 3.15%.

The S&P closed at 2003, up 15 points or 0.75% over the past week. YTD the S&P is up 8.39%.

The Nasdaq closed at 4580, up 41 points or 0.90% over the past week. YTD the Nasdaq is up 9.65%.

Gold closed at 1288, up 7.00 points or 0.55% over the past week. YTD gold is up 6.98%.

Oil closed at 95.85, up 2.28 points or 2.44% over the past week. YTD oil is down -2.80%.

The USD/CAD closed at 1.087169, down -0.0074 points or -0.68% over the past week. YTD the USD/CAD is up 2.25%.

 

Sources: Bloomberg; Statistics Canada; advisor.ca; Investment Executive