July 18, 2023

Markets were strong on Tuesday with the S&P 500 and Toronto each up 0.7%

TFI International was up 5.9%. What a fantastic long term winning company. This latest gain was likely due to analysts upgrades although I see FedEx was also up 2.8% so maybe the whole sector was more loved today. What is nice too, is that it gapped up at the opening. The positive news must have come out while the market was closed. That’s the way it should be.

Cameco was up 4.0%. Nuclear power may be about to have its day in the sun again.

AutoCanada was up 4.1%

CMHC reported June housing starts. The headline was that Canada saw a huge increase. Looking at the details, that headline was quite misleading. The increase was versus May and month to month things can be volatile. The overall trend was relatively flat. For Canada single family starts were DOWN 28% versus June of last year and total starts were unchanged. The overall trend in recent months is about flat. It’s almost irresponsible that this comes out with a headline about a record increase.  

Because of my interest in Melcor Developments I always focus on the Alberta starts. These were dismal. In Alberta, single family home starts were down 26% versus June of 2022 and multi-family starts were down 36%. Calgary single family starts were only down 6% while Edmonton was down 34%. (And June 2022 was no banner month either.) The dismal housing starts in Alberta are despite the surge in immigration and the relatively affordable prices. High interest rates are clobbering the market. But rents are rising and so perhaps the starts in upcoming months will improve. 




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