On Monday, the S&P 500 fell 0.5% and Toronto was down 0.1%
Bond yields were up modestly (10 year U.S. Treasury up to 2.28% from 2.16% on Friday and from 2.12% on May 1. That 2.28% is still an incredibly low rate and I am not sure the increase constitutes a “spike” but some reports are describing it that way. There was worry today apparently about the Greek debt situation. I don’t think is usually pays to worry much about things like the Greek debt. If we got out of the market every time something like this came up, we would never be in the market.
Melcor is scheduled to report earnings tomorrow. That will likely be after the close. I look forward to their thoughts on the outlook for their business.
There has been news that some of the former Target stores will live again as Canadian Tires, Wal-Marts and Lowe’s.
You may recall that I was incredulous several years ago when Target paid something like an average of $15 million per store to take over the Zellers leases and then an average of another $10 million or so per store in renovations. Canadian Tire is now paying not much over a million per store to take over some leases. Walmart and Lowe’s however appear to be paying something over $10 million per store. (Presumably they are taking bigger stores and /or the leases will last longer or are otherwise more attractive than the Canadian Tire spots.)
It is good to see that at least some of the stores will be occupied again. It would be a bad sign if the space sat empty.
It would be hilarious if Zellers resurrected itself and grabbed some spots back.