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Thursday, February 9, 2017
Macro View
North American equity markets are trading higher this morning
following gains in global markets and an uptick in oil. U.S.
jobless claims saw an unexpected drop to 234,000, which was
better than consensus estimates of 250,000. The latest results
continue on this historically low trend of applications remaining
below 300,000. There are no major data points due out of
Canada today.
Oil (+1.0%) got a bump after an unexpected draw in
U.S.
gasoline
inventories.
The
Energy
Information
Administration said yesterday that inventories fell by 869,000
barrels last week, compared to estimates for a 1.1 million barrel
gain. Gold steadied as uncertainty remains in the markets with
Trump fighting to enforce his temporary travel ban on people
from Muslim countries, and in France, as far-right leader Marine
Le Pen launched her bid for the French presidency.
Canadian Markets
Suncor (SU, +2.9%) reported a better-than-expected Q4 profit
with production coming in above expectations. The company
also raised its quarterly dividend by 10.3% to $0.32 from $0.29
per share.
Manulife Financial (MFC, -1.0%) reported a beat on Q4 EPS
and also raised its quarterly dividend by 10.8% to $0.205 from
$0.185 per share.
Thomson Reuters (TRI, -3.3%) posted a beat, raised its
dividend and also announces additional share repurchases.
However, the shares were under pressure after the company
posted weak guidance.
Telus (T, -1.9%) announced a weak quarter with EPS missing
expectations by $0.04 and with full year guidance also falling
short of consensus.
Market Indicators
Kellogg (K, +3.7%) is trading higher after it reported a
quarterly beat on earnings. The food company announced that it
will be eliminating its direct store delivery, selling and
Change
YTD
S&P/TSX
15,609.62
0.36%
2.1%
S&P 500
2,306.39
0.51%
3.0%
NASDAQ
5,712.68
0.53%
6.1%
Dow Jones
20,166.61
0.56%
2.0%
Nikkei 225
18,907.67
-0.53%
-1.1%
3,277.45
1.22%
-0.4%
Euro Stoxx 50
*As of February 9 2017 11:00 AM. Source: Bloomberg
EC A
SU
C NQ
BAM/A
Canadian Market Movers
Encana C orp
Suncor Energy Inc
C anadian Natural Resources
Brookfield Asset Manage-C l A
4.8%
2.9%
2.2%
1.9%
MRU
Metro Inc
1.9%
ABX
K
TRI
YRI
SLW
Barrick Gold C orp
Kinross Gold C orp
Thomson Reuters C orp
Yamana Gold Inc
Silver Wheaton C orp
-2.3%
-2.5%
-3.3%
-3.8%
-3.9%
*As of February 9 2017 11:00 AM. Source: Bloomberg
NKE
WMB
U.S. Market Movers
Nike Inc -C l B
Williams C os Inc
2.6%
2.5%
MET
Metlife Inc
2.2%
APC
Anadarko Petroleum C orp
2.0%
MS
Morgan Stanley
1.8%
C VS
C vs Health C orp
-0.9%
EXC
FC X
GILD
KO
Exelon C orp
Freeport-Mcmoran Inc
Gilead Sciences Inc
C oca-C ola C o/The
-1.4%
-1.9%
-1.9%
-2.1%
*As of February 9 2017 11:00 AM. Source: Bloomberg
Benchmark Bonds & Rates
Chg 1
Yld 1 Jun-162 Sep-162
U.S. Markets
Coca-Cola (KO, -2.1%) released its results for the quarter that
beat on revenue, with EPS in-line with estimates. Shares of the
beverage maker are under pressure after it provided weak
guidance for 2017. Revenue fell for the seventh straight quarter
and its results were hurt by the strong U.S. dollar.
Level*
Index
C A 2YR
$0.01
C A 10YR
US 2YR
US 10YR
$0.02
$0.02
$0.04
0.73%
0.50%
0.65%
1.65% 1.35%
1.45%
1.17% 0.95%
0.95%
2.38% 2.25%
2.10%
Rate 1 Jun-162 Sep-162
C A Prime
2.70%
---%
C A Overnight Target 0.50% 0.50%
0.01%
Fed Funds Tgt
0.75% 0.63%
0.01%
1 - As of February 9 2017 11:00 AM.; 2 - CIBC forecasts. Source:
Bloomberg
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www.cibcwoodgundy.com
ISG Market Beat
distribution system.
Currencies & Commodities
Whole Foods Market (WFM, +2.7%) posted mixed results for
the quarter that matched EPS expectations, but fell short on
revenue. The supermarket chain’s earnings were impacted by
increased competition as it announced the close of nine stores.
Management also cut its full-year outlook.
Price*
0.761
-0.001
2.3%
US$/€
0.938
-0.003
-1.4%
$1,234.15
-$7.33
7.1%
$52.83
$0.49
-1.7%
Oil
Natural Gas
$3.14
Equity Indices Last 12 Months










Dow Jones
9-Jan
9-Feb
9-Dec
9-Nov
9-Oct
9-Sep
9-Aug
9-Jul
9-Jun
9-Apr
9-May
9-Feb
9-Mar
121
117
113
109
105
101
97
93
89
S&P/TSX
S&P 500
Upcoming Earnings
Thursday February 9
Agrium Inc.
Est.
Brookfield Asset Mgmt.
Act.
Cameco Corp.
Est.
Coca-Cola Co.
Act.
CVS Health Corp.
Act.
Great-West Lifeco Inc.
Act.
Manulife Financial Corp.
Act.
MEG Energy Corp.
Act.
TELUS Corp.
Act.
Thomson Reuters Corp.
Est.
Source: Bloomberg
US$0.66
US$0.14
$0.23
US$0.37
US$1.71
$0.71
$0.63
-$0.32
$0.53
US$0.58
Economic Calendar - U.S.
Economic Calendar - Canada
Release
New Housing Price Index MoM (Dec)
New Housing Price Index YoY (Dec)
Unemployment Rate (Jan)
Net Change in Employment (Jan)
Full Time Employment Change (Jan)
Part Time Employment Change (Jan)
Participation Rate (Jan)
Bloomberg Nanos Confidence
Teranet/National Bank HPI MoM (Jan)
Teranet/National Bank HP Index (Jan)
$0.01 -15.8%
*As of February 9 2017 11:00 AM. Source: Bloomberg
Viacom (VIAB, +4.0%) reported quarterly earnings that topped
EPS and revenue estimates. The media conglomerate stated that
it wants to narrow its strategic focus to six key channel brands
out of about two dozen. Its results were helped by growth in its
domestic affiliate and theatrical revenues.
Day
Th
Th
F
F
F
F
F
M
Tu
Tu
YTD
US$/C $
Gold
Twitter (TWTR, -9.7%) is trading down after it released weakerthan-expected EPS and revenue for the quarter. Management
also provided current-quarter earnings outlook that fell short of
expectations. The social media firm saw its weakest quarterly
revenue growth since going public.
Change
Prior
Est.
Actual
0.2%
0.2%
0.1%
3.0%
3.1%
3.0%
6.9%
6.9%
--
46.1k
-10.0k
--
70.9
--
--
-24.7
--
--
65.8
65.8
--
57.3
--
--
0.3%
--
--
19941.0%
--
--
Day
Th
Th
Th
Th
Th
F
Th
F
F
F
Release
Initial Jobless Claims
Continuing Claims
Bloomberg Consumer Comfort
Wholesale Trade Sales MoM (Dec)
Wholesale Inventories MoM (Dec F)
Import Price Index MoM (Jan)
Import Price Index ex Petroleum MoM (Jan)
Import Price Index YoY (Jan)
U. of Mich. Sentiment (Feb P)
U. of Mich. Current Conditions (Feb P)
Prior
Est.
246k
249k
Actual
234k
2063k
2058k
2078k
46.6
--
47.2
0.5%
--
2.6%
1.0%
1.0%
1.0%
0.4%
0.3%
--
-0.2%
--
--
1.8%
3.3%
--
98.5
98.0
--
--
--
111.3
Source: Bloomberg
Source: Bloomberg
Brad Brown, CFA
Sr. Equities Specialist
Christopher Antony
Investment Associate
Nadeem Kassam, CFA
Sr. Manager, Equities
Michael O’Callaghan, MBA, CFA
Director, Equities
Allan Bishop
Sr. Fixed-Income Specialist
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