July 23, 2017

On Friday, the S&P 500 was about unchanged while Toronto was down 0.5%.

Melcor was down 3.5% to $14.00. I am cautiously optimistic that they will report a decent Q2. Their views on the outlook may be more important than the Q2 numbers. It is always possible that they will have some non-cash mark to market losses on investment properties.

RBC upgraded CRH Medical to outperform at $4.07 with target $6.00 compared with previous sector perform with target $8.50 at $4.74. That report appeared to give CRH a little boost on Friday morning but it closed the day unchanged.

Statistics Canada reported investment in New Home Construction that was higher in May versus the year earlier period.

Statistics Canada also reported inflation numbers for June. They measured inflation at 1.0% since June of last year but 1.4% excluding food and energy. Contrary to popular opinion they don’t ignore food and energy they just give the numbers both ways. Also contrary to popular opinion the report here indicates that the cost of houses does factor into their inflation numbers. Providing an inflation number is a thankless task since everyone seems to expect the number should match what is happening in their own personal “basket” of goods and services rather than some average basket. In addition it seems like people see and remember price increases a lot more clearly than price decreases. I certainly see no reason to think that the numbers are manipulated for political purposes which is what a lot of people seem to think.

Retail Sales in May were also reported and were up . Motor vehicle sales were strong and Alberta was strong.