Fund Library News Wire
| Friday, September 29, 2017
By Mike Keerma
Toronto’s benchmark stock index, the
S&P/TSX Composite Index closed the month at its highest point in four months, logging a 1.2% gain
on the week, 2.8% on the month, and 3% for the quarter. Despite a flat
Canadian GDP report for July, the index was buoyed by strength in the
financial sector and is now ahead 2.3% year to date. Reacting to more
hawkish comments from Federal Reserve Chairwoman Janet Yellen and a
tax-reform announcement from President Donald Trump, the big U.S. stock
gauges also registered gains. Both the
S&P 500 Composite Index and the
Nasdaq Composite Index wrapped up the week, month, and quarter on a high note, closing at record
highs on Friday. The S&P 500 closed up 0.7% on the week, while the
Nasdaq Composite advanced 1.1%.
Crude oil rose 1.8% on the week, remaining above US$50/barrel, while
gold flagged, losing 1.4% on the week, for a 3.1% loss overall in September.
Weighed down by the oil and gas sector, Canada’s gross domestic product
remained unchanged in July from June’s reading, and posted a 3.8%
year-over-year pace of growth. The flat reading for July was just slightly
below consensus estimates, and really didn’t affect stock market
performance for the week.
In the U.S., Fed Chairwoman Janet Yellen had warned earlier in the week
about being too slow in bringing rates back to normal, a comment that many
analysts used to bolster their argument for another rate hike in December.
In addition, markets digested the possibility that President Trump would
not renew Yellen’s term as Fed Chair (or that she would not seek to renew
it) when it expires in February, given that he has interviewed Fed Governor
Jay Powell and former Fed Governor Kevin Warsh and two others as possible
In company news, former market darling and Canadian tech giant
Blackberry Ltd. (TSX: BB) continues to reinvent itself as a specialty software supplier, reporting
record revenues of US$196 million from its enterprise software business and
deals in its automotive business, including self-driving cars. For the
quarter ending Aug. 31, the company posted profit of $26 million ($0.05 per
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