Canadian stocks marched back into record territory yesterday as the S&P/TSX composite index racked up a third straight day of gains as heavyweights like Suncor, Enbridge and Toronto-Dominion led the way. The S&P 500 and Nasdaq also closed at all-time highs, and the Dow Industrials finished within 60 points of a new summit. How quickly coronavirus fears fall by the wayside even as the number of deaths and confirmed cases continue to expand. Today it seems market sentiment is being supported by China’s move to slash tariffs on US$75 billion worth of imports from America as part of the phase-one trade deal, as well as OPEC+ officials recommending the group scale back oil production.
BLUE CHIP EARNINGS
Quarterly reporting season is ramping up in Canada. This morning, BCE announced its dividend will rise five per cent after the company matched fourth-quarter profit expectations while touting “promotional spending discipline” in its wireless division. Since we always point out BNN Bloomberg is owned by BCE through its Bell Media division, today we’ll also note that unit saw its adjusted EBITDA jump 16.5 per cent in the fourth-quarter. Meantime, BCE unveiled its financial forecasts for this year, including an adjusted EPS range that trails the average estimate. Over at Suncor, lots of talk about rewarding shareholders in its earnings release last night as the energy giant raises its quarterly dividend 11 per cent and launches a new share buyback program. It was, however, a messy end to the year as Suncor booked more than $3 billion in impairment charges, resulting in a substantial net loss.
TORONTO HOME PRICES KEEP HEATING UP
It was more of the same in Canada’s largest housing market last month: listings sank (-35 per cent), sales climbed (+15 per cent), prices rose (+12.3 per cent). We’ll dive into the nasty mix (for prospective buyers) of shrinking supply and rising selling activity with industry pro John Pasalis in The Open.
IN CONVERSATION WITH ALPHABET’S CFO
Amanda Lang is sitting down after her show today with Ruth Porat, chief financial officer of Google’s parent company. It’s a rare opportunity to hear directly from a true giant of the technology world. We’ll aim to share a highlight from that conversation late this afternoon; stay tuned for the full interview tomorrow in Bloomberg Markets.
OTHER NOTABLE STORIES
-We’ll watch shares of Innergex Renewable Energy today after it announced a new partnership with Hydro-Quebec that’ll see the utility giant acquire 34.6 million INE shares at $19.08 apiece (a premium to yesterday’s close).
-SNC-Lavalin is bringing fresh perspective into its boardroom, with three new directors up for election at the next annual meeting. Among the nominees: former TD Bank executive Mike Pederson and ex-PwC Canada CEO Chris Clark.
-Twitter shares are rallying in pre-market trading after user growth and revenue outpaced estimates in the fourth quarter. As Greg Taylor from Purpose Investments told Paul this morning on The Street: this is prime time for Twitter as the U.S. presidential election campaign plays out on its platform.
-Casper Sleep shares will begin trading today on the NYSE after underwriters failed to secure the initially hoped-for demand as shares of the mattress-in-a-box company were priced late yesterday at the bottom end of a recently scaled-down range.
-And, from yesterday: Bernard Madoff, architect of a massive Ponzi scheme, is requesting early release on compassionate grounds as a result of deteriorating health.
NOTABLE RELEASES/EVENTS
-Notable earnings: BCE, Saputo, Brookfield Renewable Partners, Lightspeed, Indigo Books & Music, Twitter, Uber, Philip Morris International, Lions Gate Entertainment
-12:00 p.m. ET: U.S. President Donald Trump delivers remarks at the White House re. impeachment acquittal
Every morning BNN Bloomberg's Managing Editor Noah Zivitz writes a ‘chase note’ to BNN Bloomberg's editorial staff listing the stories and events that will be in the spotlight that day. Have it delivered to your inbox before the trading day begins by heading to www.bnnbloomberg.ca/subscribe.
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