JMRD Market Observer for May 26th, 2017 – Geopolitical Briefing – Trump’s Troubles

May 26, 2017

In This Week’s JMRD Market Observer

 

 

  • Geopolitical Briefing – Trump’s Troubles

  • Bank of Canada Policy Monitor – A Tightening Bias on the Horizon

  • JMRD Basket Corner

  • Retirement Corner

  • Reads of the Week

  • Economic Calendar

  • Earnings Reports

 

 

Geopolitical Briefing – Trump’s Troubles

 

Introduction

 

President Trump’s administration has been beset by leaks and accusations of wrong-doing since taking office. It now faces its most challenging moment to date after Trump’s decision to fire FBI Director James Comey was soon followed by allegations that he sought to shut down an investigation into a former aide. Not only is this stoking fears among investors that the administration will be distracted from advancing its ambitious pro-business legislative agenda, it has given Trump’s political adversaries further cause to call for his impeachment. See the full article

 

 

Bank of Canada Policy Monitor – A Tightening Bias on the Horizon

 

As widely expected, the Bank of Canada left the overnight rate unchanged at 0.50% today. While the central bank acknowledged “robust” consumer spending and the housing sector, it bemoaned “subdued” export growth resulting from “ongoing competitiveness challenges”. The BoC also made clear “the uncertainties outlined in the April MPR continue to cloud the global and Canadian outlooks”. The fact that core inflation remains below 2% and wage growth is subdued is “consistent with ongoing excess capacity in the economy” according to the BoC. However, intense competition in the retail sector is also temporarily pushing down prices according to the central bank. The BoC also said that macro-prudential and other policy measures have yet to have a substantial cooling effect on housing markets. 

See the full article

 

 

JMRD Basket Corner

 

DIG Basket

 

TD Bank (TD) and Royal Bank (RY) – Both TD and Royal Bank report quarterly earnings this week which we pretty much in line with expectations. 

 

TD Report

 

Royal Bank Report

 

SNC Lavalin – Take-away from Ferrovial’s investor day focused on Cintra and hence 407 ETR. See the full article

 

All-Cap Growth Basket

 

CGI Group (GIB.A) – NBF Analyst Richard Tse provided a timely update for CGI Group, reiterating his Outperform thesis. See the full article

 

U.S. Growth Basket

 

Norfolk Southern (NSC)Two Rail Picks Get a Boost From Plastic: Kansas City Southern and Union Pacific are the key beneficiaries of the surge in plastic-resin production

 

Arista Networks (ANET)Arista Notches Another Win Versus Cisco, Says Wells Fargo

 

Facebook (FB); Applied Materials (AMAT); Microchip Technologies (MCHP)20 Big Winners in the S&P 500 this Earnings Season  

 

 

Retirement Corner

 

 

 

Reads of the Week

 

 

 

 

 

 

 

Economic Reports

 

Monday May 29th – Memorial Day – US Markets Close

Tuesday May 30thUS S&P/Case Shiller Home Price Index, US Consumer Confidence

Wednesday May 31stCanada GDP; US Pending Home Sales, US Beige Book

Thursday June 1stCanada Manufacturing PMI; US Manufacturing ISM and PMI, US Initial Jobless Claims

Friday June 2ndUS Employment Change and Unemployment Rate

 

 

Earnings Reports

 

Monday May 29th – Memorial Day – US Markets Close

Tuesday May 30thBank of Nova Scotia, Laurentian Bank, Pengrowth Energy

Wednesday May 31stCAE Inc., National Bank

Thursday June 1stCanadian Western Bank, Saputo

Friday June 2ndNone

 

 

Have a good long weekend!

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