The price of West Texas Intermediate crude is on the rise, trading above US$73 per barrel, ahead of the U.S. Energy Information Administration's weekly inventory data due out this morning. Analysts are predicting another draw in crude oil inventories, which if confirmed will be the fifth consecutive week of declines, strengthening the bullish view for global markets. Also, the prospect of Iranian oil reentering the market has dimmed somewhat after negotiations between the U.S. and Iran over the Middle Eastern nation’s nuclear program stalled earlier this week.

EMPIRE’S COVID COSTS EXCEED ESTIMATES

Empire, the parent company of Sobey’s, FreshCo, Farm Boy and Safeway, has said the pandemic added about $24 million in COVID-19 related costs in the fourth quarter, which was more than previously expected. The money was put towards sanitization and safety measures as well as $9 million that went towards the cost of lockdown bonuses. Despite these added costs, the company topped earnings expectations and raised its annual dividend by 15.3 per cent. However, the grocery store reported same-store sales fell 6.1 per cent in the latest quarter compared to the same period a year ago.  

CIBC BUYS MINORITY STAKE IN LOOP CAPITAL

Canadian Imperial Bank of Commerce is buying a minority stake in Chicago-based Loop Capital. Loop provides investment banking, brokerage and wealth management services to corporations and high net worth individuals. Loop has more than 175 employees and offices in 20 American cities. CIBC has been expanding south of the border since its purchase of PrivateBancorp for US$5 billion in 2017. No financial terms were disclosed.

SINGLE-EVENT SPORT GAMBLING TO BECOME LEGAL, SHARES OF SCORE MEDIA JUMP

Shares of Score Media and DraftKings are trading higher in the pre-market. The jump comes after the Senate passed legislation that will legalize single-event sports betting in Canada. The upper chamber approved Bill C-218 late Tuesday afternoon with a vote of 57-20, with five abstentions, and now it now awaits royal assent to become law, which is simply a formality.

OTHER NOTABLE STORIES

  • Warren Buffett has resigned as a trustee at the Bill and Melinda Gates Foundation
  • Morgan Stanley will reportedly bar unvaccinated employees and clients from entering its New York offices
  • Microsoft has become just the second U.S. public company ever to reach US$2 trillion in market value

NOTABLE RELEASES/EVENTS

  • Notable data: Canadian retail sales, U.S. new home sales
  • Notable earnings: Empire Co., Winnebago, KB Home
  • 11:30: PBO releasing report “Beyond Paris: Reducing Canada’s GHG Emissions by 2030”
  • 12:30: Empire Co. holds conference call
  • 13:00: Blackberry holds its annual shareholder meeting