Market week: Stocks make monthly gains

11-29-2019
Market week: Stocks make monthly gains

Investors give thanks for fresh record highs

In shortened trading week marked by lower volumes on the big U.S. exchanges, the major North American stock indices posted both weekly and monthly advances, posting new record highs in the week, as investors overcame trade-related anxieties and focused on strong initial Black Friday sales reports.

The on-again-off-again U.S.-China trade negotiations for the so-called Phase 1 deal seemed to be off again as U.S. President signed legislation that supports the Hong Kong pro-democracy movement. Unhappy with the move, China’s government summoned the U.S. ambassador to express its displeasure. However, this had little effect on markets, which in the U.S. were closed on Thursday and opened for only half a day on Friday. Low trading volumes, typical through the U.S. Thanksgiving week, attested to the markets’ having largely discounted the U.S.-China trade shenanigans, with an expectation that a deal will be signed before a new round of U.S. tariffs takes effect on Dec. 15.

Perhaps of greater interest to traders, at least last week, was the reported 2.1% annual growth rate for U.S. gross domestic product in the July-August quarter, which outpaced the U.S. Commerce Department’s forecast for a 1.9% expansion. Together with the Federal Reserve Board’s newfound dovishness on monetary policy, that was enough to boost investor sentiment and drive the major stock indices into fresh record high territory through the week.

The S&P 500 Composite Index closed Friday with a 1.0% gain overall on the week, for a 3.4% advance in the month. The Nasdaq Composite Index gained 1.7% on the week, and advanced 4.5% for the month. Toronto’s benchmark S&P/TSX Composite Index also marked a record-high close of 17,114.52 on Thursday, for a weekly advance of 0.5%, led by the materials group, and 3.4% for November overall. Gold remained flat on the week, while crude oil dropped 4.2%, edging ahead just 0.7% on the month.

Index

Nov. 29, 2019, close

Day

Week

Year to Date

November 2019

S&P/TSX Composite

17,040.20

-0.4%

0.50%

18.97%

3.38%

S&P 500 Composite

3,140.98

-0.4%

0.99%

25.30%

3.40%

Nasdaq Composite

8,665.47

-0.5%

1.71%

30.60%

4.50%

Gold (US$)

$1,470.30

0.7%

0.08%

14.89%

-1.15%

Oil (WTI) (US$)

$55.42

-4.6%

-4.22%

22.04%

0.65%

 

FUND NEWS

* TD adds 10 ETFs to its lineup. TD Asset Management Inc. announced on Nov. 26 that it has added 10 new TD exchange-traded funds to its stable of ETFs.

TD Income Builder ETF (TSX: TPAY). Exposure to a broad spectrum of fixed income TD ETFs.

TD Active Global Real Estate Equity ETF (TSX: TGRE). An actively managed, globally diversified, real estate fund.

TD Canadian Long Term Federal Bond ETF (NEO: TCLB). Invests primarily in longer-dated Government of Canada securities, with flexibility to invest in bonds with variable terms and liquidity.

TD U.S. Long Term Treasury Bond ETF (NEO: TULB). Holds longer-dated U.S. Treasury bonds, with flexibility to invest in bonds with variable terms and liquidity.

TD Active U.S. High Yield Bond ETF (NEO: TUHY). A portfolio of U.S. high-yield bonds.

TD Active Global Income ETF (TSX: TGFI). Fixed-income securities with an asset mix of 50% investment grade and 50% high yield.

TD Q Global Multifactor ETF (NEO: TQGM). Access to a quantitative strategy that diversifies exposures to multiple factors such as value, momentum, yield and low risk

TD Q Canadian Dividend ETF (TSX: TQCD). Uses a quantitative investment approach to invest in dividend stocks and other income-producing instruments of Canadian companies.

TD Q Global Dividend ETF (TSX: TQGD). Uses quantitative investment strategy to invest in global dividend stocks and other income-producing instruments.

TD Q U.S. Small-Mid Cap Equity ETF (NEO: TQSM). Invests in small- and medium-cap U.S. companies, using a quantitative approach.

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