July 27, 2017

On Thursday, the S&P 500 was down 0.1% while Toronto was down 0.1%.

Fedex was down 2.9%.

Constellation Software was down 3.5% after releasing Q2 earnings.

CN Rail really had a huge Q2. Carloadings were up as follows: Metals and minerals 32%! Grain and fertilizers 16%, Intermodal (which is generally consumer goods) 16%, Automotive 9%, Petroleum and chemicals 6%, Forest products down 2%, Coal was down 3% (but for whatever reason way up in revenue). CN however warned that the next two quarters will face tougher comparable and that currency will be a headwind. I would think that these huge increases in car loads suggest that the Canadian economy is truly on the move and growing.

Perhaps TFI International (TransForce) will also report a strong quarter given the increase in goods on the move. TransForce will also face a currency headwind in the back half of the year however as will Stantec. Couche-Tard is interesting in that a higher Canadian dollar increases its earnings which are reported in U.S. dollars but it is really a negative when translated back to Canadian dollars.