Last updated: Jun-22-2018

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By Fund Library News Wire  | Friday, October 21, 2016

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 week.

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 harvests.


* 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.

Check Fund Library’s Market Activity page regularly for active updates on key market indexes and commodities.

@FundLibrary – Follow Fund Library on Twitter for daily information and updates.


© 2016 by Fund Library. All rights reserved. Reproduction in whole or in part by any means without prior written permission is prohibited.

The foregoing is for general information purposes only and is the opinion of the writer. No guarantee of investment performance is made or implied. It is not intended to provide specific personalized advice including, without limitation, investment, financial, legal, accounting or tax advice.

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