Friday was yet another positive day for U.S. stocks as the S&P 500 rose another 0.7%. Meanwhile, Toronto was down 0.15%.
Canadian Western Bank was up 7.6% after reporting good earnings on Friday morning. It’s provision for loan losses was lower than expected. CWB has a great history of avoiding much in the way of loan losses. The reality is that n o one knows what level of loan losses will ultimately occur due to the pandemic and lower oil prices. But CWB believes the losses will be quite manageable. If they are right then CWB’s share price will continue to recover.
So far markets are ignoring what appears to be considerable unrest in the U.S. Now that September is upon us the market my turn its attention more to the divisive election campaign that is about to kick into high gear. The virus situation may also be set to get worse with schools opening. Overall, there would seem to be reason to be cautious on the outlook for stocks in general.