On Tuesday the markets shrugged off much of yesterday’s fears and the S&P 500 was up 1.0% while Toronto was up 0.3%. This pushed most stocks up.
AutoCanda was up 14.9% after announcing that its lenders have extended its lines of credit by three years. The company will also redeem early $150 million in bonds that pay 5.625%. Largely, this will be financed with a new $125 million bond presumable at a lower interest rate. I think the early redemption is a sign of strength. The company also had other news indicting that its sales in Q4 were modestly higher than the prior year. And it is apparently no longer trying to sell four of its U.S. dealerships because they are now performing better. Overall, I suspect this news has now been reflected in the stock price and it may give back some of these gains as we await the final Q4 numbers. I still hold a large position in AutoCanda after having reduced the position last year. I plan to hold that position and may or may not add to if the stock dips from here.
A number of companies reported earnings after the close. These included Apple and CN rail. Also, Starbucks which had a very strong report. Where these stocks move tomorrow depends on how the results compared to expectations as opposed to how they compared to last year’s numbers.