By Mike Keerma
* TSX rallies on energy, gold.
* First Asset launches three ETFs based on CIBC Index Strategies.
Pressured by the prospect of another quarter of fading corporate profitability, and troubled by uncertainties surrounding the U.S. election and the timing
of the Fed’s next rate hike, the S&P 500 Composite Index
edged up a barely visible 0.4% on the week, while the Nasdaq Composite Index posted a 0.8% advance. Toronto’s
benchmark S&P/TSX Composite Index, buoyed by a rally in
energy issues and a 1.2% gain in the price of gold, posted a more robust 2.4% advance on the week.
The blue-chip U.S. indices showed sluggishness on the week, as bellwether General Electric Co. (NYSE: GE) posted profit of
US$2.03 billion (US$0.22 per share) on quarterly revenues of US$29.27 billion. Revenues rose 4%, but were lower than expected by analysts, causing a
selloff in share price. However, technology bellwether Microsoft Corp. (NASDAQ: MSFT) logged profits of
US$4.7 billion (US$0.60 per share) on revenues of US$20.5 billion, helping buoy tech sentiment and propelling the Nasdaq Composite to a near 1% gain on the
In Canada, the Bank of Canada kept its target overnight rate unchanged at 0.5%, but BoC Governor Stephen Poloz indicated in a statement that the Bank has
identified a number of uncertainties to its risk outlook, including the impact of tighter mortgage rules and the government’s fiscal plans. Analysts read
the potential for further easing into these remarks, although the BoC itself did not telegraph such a move.
In company news, Postmedia Network Canada Corp. (TSX: PNC.B), Canada’s
largest newspaper publisher, reported a net loss of $99.4 million ($0.35 per share) as print advertising revenue continued to decline. The company also
announced a 20% staff cut, or about 800 jobs, in an effort to cut costs.
Railway operator Canadian Pacific Railway Ltd. (TSX: CP)
posted net earnings for the quarter of $347 million ($2.73 per share), on a 9% drop in revenue, to $1.55 billion, as grain shipments faded on delayed
* First Asset launches three ETFs based on CIBC Index Strategies. First Asset Investment Management Inc. debuted three ETFs based on CIBC
equity index strategies using a proprietary rules-based methodology developed by CIBC Capital Markets from its research.
First Asset U.S. Equity Multi-Factor Index ETF (TSX: FUM)
invests in U.S. companies with low beta, high quality, and value characteristics.
First Asset Canadian Dividend Low Volatility Index ETF (TSX: FDL)
holds TSX-listed companies with low beta and high dividend yield characteristics.
First Asset U.S. Tactical Sector Allocation Index ETF (TSX: FUT)
holds a portfolio of exchange-traded funds with variable exposure among nine U.S. equity sectors and short- and mid-term fixed-income investments.
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