5 from 5i: Economy and Walmart

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Market View

Stocks followed up their worst day of the year this week with resilience. China urged the US to meet at “half way”, and President Trump followed by saying that he expects the trade dispute to be short-lived. Meanwhile, the interest rate on some long-term government bonds fell below the level of short-term debt, which is typically called a “yield curve inversion”. This signals some warning signs for the economy. Despite that, the yield curve righted itself the following day. Oil prices rebounded after positive US July retail sales data and gold fell slightly. Canadian dollar was 75.17 cents. U.S. S&P500 was down 0.6% this week and TSX was down 0.9%.

 

It was a week of mostly reds this week. Healthcare slid the most by -9.8%, followed by energy at 4.5% and consumer discretionary that fell by 3.1%. Financials and Materials both fell by 2.5%, respectively. Consumer Staples, telecommunications and real estate ended the week flat. Canopy Growth reported poorer-than-expected quarterly revenue due to lower sales volume of medical cannabis. Revenue jumped 249% to $90.5 million, but net loss widened to $1.28 billion. Canada Goose Holdings reported lower-than-expected quarterly loss as it sold higher priced jackets and parkas and opening new retail outlets. Revenue jumped 59.1% to $71.1, beating estimates of $54.38 million. Barrick Gold Corp announced that its quarterly adjusted profit nearly doubled due to higher production and forecast its annual gold production at the upper end of its guidance range. The most heavily traded shares by volume were Bombardier, Aurora Cannabis and Encana.

5 from 5i

Here are five reads we found interesting last week:

-How is the economy doing given that Walmart raised its 2020 outlook?

-Millennials and yield curve inversion

-Are bond yields too low?

-Misconceptions about factor-based strategies

-Low rates and why they make sense

 

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Disclosure: The author does not hold positions in any stocks or funds mentioned.

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