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Category Archives: Weekly Update

Frank Mueller

Weekly Update – June 16, 2017

“No man has a good enough memory to be a successful liar” – Abraham Lincoln

Toronto Stock Exchange Finishes Down For the Week as Financials, Energy and Minerals Slump

The Toronto Stock Exchange’s S&P/TSX composite index rose 31.97 points, to finish at 15,192.54, as 6 of the 10 main sectors finished higher than they opened. For the week, the TSX was down 280.67 points, and on Thursday, the TSX dropped to a 6-month low. The usual suspects were at work this week, with the financial, energy and mineral sectors retreating.

Oil suffered a steep drop on Wednesday before rebounding slightly to close out the week. Gold dropped by $14 per ounce for the week, to finish up at $1,255.20 per ounce. Earlier in the week, the heavyweight banks fell off after some gains last week.

The possibility of a Bank of Canada rate hike in the near future was raised on Monday on comments from a Bank of Canada senior official.

Amazon Announces Deal to Buy Whole Foods, Federal Reserve Raises Key Rate

South of the border, the Federal Reserve opted to raise its key rate to a range of 1% – 1.25%, its highest level since the Global Economic Crisis of 2008. Fed Chair Janet Yellen’s commentary on the matter has led some analysts to conclude that another rate hike will be coming later this year. Analysts are weighing how much the rate increase will affect the economy.

In other news, Amazon announced a major deal to buy Whole Foods for $13.7 Billion. This announcement led to downswings in the consumer staples sector, and these drops weighed on the Dow Jones Industrial Average (DJIA) overall, resulting in a muted rise of 24.38 points to close up at 21,384.28 overall.

The NASDAQ was pulled lower by Apple – among others – to drop 13.74 points to finish at 2,433.15.

U.S. home starts dropped for the third straight month in May.

Sources: Globe Advisor

Frank Mueller

Weekly Update – May 19, 2017

“I’m in the business where I can’t ever say there’s no risk associated with someone” – James Comey

Toronto Stock Exchange (TSX) and Other Major Indices Rally to End the Week

The Toronto Stock Exchange’s S&P/TSX composite index rallied to gain 181.3 points on Friday, good for a 1.19% increase, pushed higher by energy and financials, to close out the week at 15,458.46. 9 of the 10 main sectors on the TSX rose on Friday. The energy sector rose by 3.25%. The Loonie jumped by half a cent to finish the week at 73.97 cents US, due partially to the annual inflation rate of 1.6% holding steady throughout April. Gold rose to finish at $1,253.87 per ounce.

The rally followed Wednesday’s dismal performance, as investors worried about the leaked Comey memos from his meeting with Trump in February. Indeed, Wednesday was the worst day for the TSX in 8 months.

South of the 49th parallel, the Dow Jones Industrial Average finished the week at 20,804.84 after a Friday that saw a rise of 141.82 points (0.69%). The S&P500 and NASDAQ also posted gains on Friday, although – like the TSX – all 3 indices were down for the week on the heels of the leaked James Comey memos. The U.S. Dollar lost ground against its counterparts this week, also thanks to the Comey memos. The Greenback lost 0.75% on Friday alone, and over 2% for the week.

Reverberations from Comey Firing Carry into this Week

All eyes are on the White House it seems, with new information coming to light almost hourly. This added attention on the political forum led to some steep drops mid-week, before markets rallied on Thursday and Friday. Looking forward, it doesn’t appear that this story is going anywhere. Democrats and now even some Republicans have uttered the dreaded “I-word” (Impeachment), not yet 5 months into Trump’s presidency.

One thing markets don’t like is uncertainty. With the uncertainty surrounding the White House, there is bound to be some market volatility in the near-future, as more information is dug up.

You can read a more in-depth analysis of our short- and long-term market outlook in our blog “Will Donald Trump Get Impeached?”. The link is at the bottom of this page.

Sources: Globe Advisor

Links

Will Donald Trump Get Impeached?