On Wednesday, the S&P 500 was down 0.4% and Toronto was down 0.5%.
AutoCanada was up 7.2% after announcing it will acquire a Mercedes Benz dealership in Montreal. The price paid was not revealed. But his transaction is another indication that the long-standing strategy of growth-by-acquisition continues. The transaction also indicates confidence on the part of management. And it further lessens the companies concentration in Alberta. In addition, the luxury car market has been stronger than the market for the traditional North American brands.
Meanwhile Toll Brothers gave back some of Tuesday’s gains.
The yield on the government of Canada five year bond is down to 1.05%. I understand that the Bank of Canada today indicated that rate cut is not in the cards but that any increases are likely at least a year off. This low 5 year yield does not bode well for any rate reset preferred shares that have a reset date approaching.