November 8, 2018
8:45 am EDT
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Market Commentary By:
Colin Cieszynski, CFA, CMT
Chief Market Strategist
+1 (647) 282-4428
Although US earnings season is winding down, Canada is still going full force with a number of announcements out today that could potentially get investors‚Äô attention. Highlights of this morning‚Äôs results include:
Bombardier ¬†¬†¬†¬†¬† ¬†¬†¬†¬†¬†¬†¬†¬†¬†Adjusted EPS of $0.04 above street $0.02. Selling Q400 turboprop business and training division for $900 million combined; planning to lay off 5,000 employees.
Magna International¬†¬†¬†¬†¬†¬† Adjusted EPS of $1.56 above street $1.51, sales of $9.62B up 8% over year
Canadian Tire¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†Adjusted EPS of $3.47 above street $2.85, 15.2% dividend increase
Telus¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†¬†Adjusted EPS of $0.74 above street $0.59, dividend increase
Outside of Canada, markets have been mixed. Yesterday‚Äôs 2.0% plus gains for US indices carried upward momentum into Asia Pacific trading where the Nikkei rallied 1.8%. In Europe today, the FTSE is up 0.5% while the main continental indices are essentially flat. Dow Futures have been trading down about 40 points or 0.1% as US markets digest yesterday‚Äôs rally.
US treasury yields and the US Dollar are also steady this morning, suggesting that US investors are reluctant to make any commitments ahead of this afternoon‚Äôs (2:00 pm EDT) Fed interest rate decision. Having raised rates at its last meeting, the FOMC is widely expected to do nothing today but raise again at its next meeting in December. The statement, could attract attention from investors looking for hints on how many rate hikes to expect in 2019, what level the Fed may consider stopping at, and if Governor Powell has any comments on rising US wage inflation which could force the Fed to remain hawkish for longer.
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