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




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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