Market View

US GDP grew at a 2.9% rate in the fourth quarter of 2022, below 3.2% growth reported in the third quarter but above street estimates of 2.3%. Major North American indices swung into positive territories mod-week as the US economy showed resilience and a greater likelihood of a soft landing compared to a recession expected later this year or in 2024. Gold prices hit a resistance this week, while the US dollar edged up slightly away from multi-month lows. The Canadian dollar was 75.10 cents USD. The U.S. S&P500 ended the week up 1.8%, while the TSX was up 0.8%.

Most sectors ended the week in green. Technology gained 4.6%, while healthcare and energy added 3.3% and 1.9%, respectively. Financial edged up by 1.3%. Industrials and utilities gave up 1.8% and 0.8%, respectively. Consumer discretionary and consumer staples ended the week relatively flat. The most heavily traded shares by volume were Algonquin Power & Utilities, Cenovus Energy, and Athabasca Oil Corp.

5 from 5i

Here are five reads we found interesting last week:

• Inside the high-yield spread, authored by Greg Obenshain of Verdad
• Don’t bet on the Davos consensus, by Liz Hoffman of Semafor
•  Jack Bogle’s legacy to investors, posted by TEBI
• Stock gains since bear market lows, posted on Twitter by Jon Erlichman
• This changes everything for hedge fund managers, the higher the cost of money, the lower the competition, written by Julie Segal of Institutional Investor

Happy Reading & Stay Safe!

Disclosure: The analyst(s) responsible for this report do not have a financial or other interest in securities mentioned.