“In The Future Everyone Will Be Famous For 15 Minutes” -Andy Warhol
TSX Snaps Five Day Losing Streak
The Toronto stock market ended its five-day losing streak Friday, rebounding strongly in a session helped by energy and infotech stocks, particularly BlackBerry whose shares surged five per cent after beating expectations on earnings. The S&P/TSX composite index soared 133.20 points to 15,026.77, while the Canadian dollar dipped 0.38 of a cent to 89.65 cents US. Wall Street also snapped back from deep losses from the previous day. The Dow Jones industrials added 167.35 points to 17,113.15, the Nasdaq gained 45.44 points to 4,512.19 and the S&P 500 index saw an uptick of 16.86 points to 1,982.85. It’s been a wild week for investors, who saw the Toronto market plunge more than 200 points Thursday, capping a fifth day of declines. The U.S. indexes did even worse, sporting the steepest declines in two months as the Dow shed nearly 250 points.
Fewer Underwater U.S. Home Owners
U.S. homeowners’ negative equity tumbled last quarter, with the second greatest drop in underwater properties since data tracking started, according to a September 25 release. Last quarter there were about 5.31 million homes with negative equity ( owners owing more on a mortgage than a property was worth ) down 946,000 from the prior quarter according to CoreLogic, an Irvine, California based analysis firm. That drop for underwater homes was the second sharpest since data collection started in 2009, and far greater than a decline of about 352,000 in the prior quarter. The share of mortgaged U.S. properties in negative equity fell to 10.7% in the second quarter from 12.7% in the first quarter and 14.9% in the year-earlier period.
Rapidly rising home prices have enabled troubled homeowners to regain equity. Having positive equity can help owners to refinance or sell a home, further firming their pocketbooks. Financial stability will likely also provide some psychological relief to owners, and could support. Certain markets are doing much worse than others when it comes to underwater properties, with just five states accounting for almost one-third of negative equity across the U.S. These states included Nevada, where 26% of mortgaged homes were underwater in the second quarter, followed by Florida, where the share was 24%, Arizona, where it was 19%, and Illinois and Rhode Island, which both had a share of about 15%.
Market Update as of September 26 2014
The TSX closed at 15027, down -253 points or -1.66% over the past week. YTD the TSX is up 10.31%.
The DOW closed at 17113, down -167 points or -0.97% over the past week. YTD the DOW is up 3.23%.
The S&P closed at 1983, down -27 points or -1.34% over the past week. YTD the S&P is up 7.31%.
The Nasdaq closed at 4512, down -68 points or -1.48% over the past week. YTD the Nasdaq is up 8.02%.
Gold closed at 1218, down -9.00 points or -0.73% over the past week. YTD gold is up 1.16%.
Oil closed at 91.92, down -0.53 points or -0.57% over the past week. YTD oil is down -6.78%.
The USD/CAD closed at 1.11543, up 0.0204 points or 1.86% over the past week. YTD the USD/CAD is up 4.91%
Sources: Bloomberg; Investment Executive; advisor.ca