5 from 5i: Correction or Recession?

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Market View

A sell-off in US stocks this week saw major indices entering correction territory today. The Bank of Canada raised interest rates to 1.75%. The Canadian dollar was 76.09 cents U.S. The week ended with the TSX down 4.5% and S&P500 down 4.8%. 

All TSX subgroups fell this week. The biggest reds were Healthcare, which fell by 18.2%, materials down 7.4%, energy dropped 5.1% and technology and industrials were down 4.8% and 4.4%, respectively. Canadian National Railway reported better than expected third-quarter profit due to shipment of higher volumes of crude and grains. Restaurant Brands International reported a 49.3% jump in quarterly profit. Barrick Gold Corp reported a drop in revenue to $1.8 billion from $1.99 billion in the same period last year. This was attributed to lower commodity prices (gold and copper) and higher fuel costs. Husky Energy’s net income rose to C$545 million from C$418.3 million in the third quarter. Maple Leaf Foods reported a 29.3% drop in quarterly profit due to lower pork prices. Teck Resources’ profit per share fell to $0.81 per share this quarter, compared to $1.05 per share in the year prior. Shopify reported a 58% jump in revenue as it rose to $270.1 million. Net loss increased to $23.2 million or 22 cents per share, from $9.4 million or 9 cents per share a year before. The most heavily traded shares by volume were Aurora Cannabis, Aphria Inc and Goldcorp Inc.

5 from 5i

Here are five reads we found interesting last week:

-Correction or recession?

-Tariffs eating into corporate profits.

-Damodaran’s take on Netflix’s ever-growing content.

-What is the value of old pipelines?

-Market principles you shouldn’t overlook.

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