April 27, 2018

Thursday was a strong day for the markets with the S&P 500 up 1.0% and Toronto up 0.8%.

Most stocks on our list were up.

Stantec rose 3.9% (see previous post)

Amazon rose 3.9% and is set to rise noticeably on Friday after it released Q1 results that included soaring revenues and higher profits. It always seems to be over-priced in terms of something like 200 times earnings but it just keeps growing at an enormous rate.

Visa was up 4.8%, TFI International was up 2.9%. Ceapro was up 5.6%.

In an interesting development, TD Bank has raised its posted 5 year mortgage rate by 0.45% to 5.59%. In the past this posted rate was somewhat irrelevant given that the actual rates offered to most customers are far lower and apparently the best customers are paying more like 3.39%. It is not clear if TD intends to raise its actual mortgage rates by this 0.45%. In any case the posted rate is much more relevant now that it is used by banks to stress-test mortgage applications. Borrowers that will pay an actual rate of say 3.39% have to prove that they could afford to pay at a rate based on the average posted rates of the big banks. It appears that the rate that people have to qualify at has just risen. If the other follow TD then the amount that people can qualify to borrow on a mortgage has just decreased.