Market View
This week market was focused on economic news, some mixed Canadian company earnings and US tech stocks beat. Canada’s economy grew 4.5% in May as businesses reopened. US tech stocks led the US market higher. The U.S. dollar fell to a two-year low and gold eased on the rally. The Canadian dollar was 74.50. U.S. S&P500 was up 0.7% this week and the TSX ended the week up 0.3%.
Technology rose by 6.6% this week helped by Shopify’s earnings call. Healthcare rose 5.8%, while materials lifted 3.4%. Energy slid 5.3%, and consumer discretionary ended the week flat. Shopify beat street estimates for quarterly revenue and profit, helped by a surge in demand during the lockdowns. Revenue rose 97% to $714.3 million, beating estimates of $513.8 million. Air Canada reported a loss for the second quarter with a forecast of third-quarter capacity to decline by 80%. Total revenue was down 89% to $527 million with a net loss of $1.75 billion. The most heavily traded shares by volume were Bombardier, Kinross Gold, and Air Canada.
5 from 5i
Here are five reads we found interesting last week:
- Should index funds be illegal? By Matt Levine of Bloomberg, re-posted on ritholtz.com
- Return of the SPAC, by John Street Capital on Medium.com
- Are asset class correlations at a new permanently high plateau? written by James Picerno of The Capital Spectator
- Shopify rallies with sales almost doubling amid online shift, authored by Divya Balji of BNN Bloomberg
- Is valuing SaaS stocks a special form of the Petersburg Paradox? a technical read published by mostly borrowed ideas
ICYMI
Happy Reading & Stay Safe!
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Disclosure: Please note that the author does not hold a financial or other interest stocks or funds mentioned.
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