September 19, 2017

On Tuesday, the S&P 500 was up 0.1% and Toronto was up 0.4%.

Toys R Us declared bankruptcy. This has been expected. This will not be much of a concern to RioCan since Toys R Us was not listed in its top 30 tenants and therefore likely represents quite a bit less than 1% of RioCan’s revenues.

Statistics Canada reported weak manufacturing sales. But there was some indication that this was caused by by normal fluctuations in sales including shutdowns at auto factories. It remains to be seen if this data indicates a true slow down as opposed to statistical noise. But certainly the recently sharply higher Canadian dollar is a negative for manufacturing.

Wells Fargo was up 1.2% to $53.36. Its problems with sales practices and resulting regulatory sanctions are not over yet and so I would be reluctant to invest in this bank at this time.

Toll Brothers was up 0.6% to $40.20. There is nothing special about the $40 mark but I like to think it deserves to be over $40.