August 16, 2023 7:45 am eastern time

Markets were noticeably negative on Tuesday with the S&P 500 down 1.0% and Toronto down 2.0%. That’s no surprise given various signs of a softening economy. This morning Target is warning of lower profits.

Most stocks were down 1 to 2.5%.

Toll Brothers was up 0.9% probably boosted by the fact that Berkshire Hathaway has initiated stakes in several home builders.

AutoCanada was up 1.4% to $26.04. That’s good on a day when the markets were quite negative. This stock has had a big recovery since it hit lows under $16 in May. That low came after two years of big declines from a high over over $50 two summers ago. I’m confident that it is well managed but higher interest rates are a headwind.

The 5 year government of Canada bond is at 5.13% this morning.

The ten year U.S. Treasury bond closed yesterday at 4.2%. The market is apparently not expecting interest rates to reverse anytime soon.

“Occidental Petroleum Corp. agreed to buy Canadian startup Carbon Engineering Ltd. for US$1.1 billion as the fossil-fuel producer works to expand its position as a leader in removing carbon dioxide from the atmosphere.” That is interesting news. If it becomes feasible and economic to remove carbon from the air then Net-zero can be achieved for any industry by removing as much carbon as is emitted. But my expectation is that many environmentalists will not settle for NET zero. They are so against the oil and gas industry that they will still start to push for ZERO as opposed to NET zero as soon as net-zero looks feasible.



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