On Thursday, the S&P 500 was down 0.4% while Toronto was up 0.2%.
TransForce reported, after the close, earnings that were lower than last year and with a weak outlook. However, this may have been anticipated.
VISA reported lower earnings mostly due to special charges associated with its acquisition of VISA Europe (which previously was a related but separate operation).
American Express fell 1.6% as analysts calculated that its earnings guidance appeared to suggest weaker than hoped for earnings in the back half of 2016. Analysts perhaps were sceptical about the forecast for strong growth in 2017.
Statistics Canada reported that investment in new singly family homes fell 2.6% year over year in May. Investment in new single family housing fell 38% in Alberta. Clearly, Melcor will continue to be in a period of significantly lower lot sales. But the company is well positioned to get through this slower period. To date there does not seem to be any indication that the value of its land holdings and building lot inventory has decreased although presumably the value is down by some small percentage. Meanwhile the stock trades at something close to only half its book value and so that would appear to offer a strong margin of safety.
Statistics Canada also reported that wholesale trade in Canada rose 1.8% in May.
Donald Trump’s speech offered a lot of promises and will appeal to many voters. In fact the promises might appeal to most voters if they believe the promises can be fulfilled. But the speech was short on details and also appears to have generated lots of controversy. Markets may react negatively if it is perceived that Trump could beat Clinton.
Trump speaks of the need for increased law and order. Meanwhile the black community is seeing video of police approaching routine traffic stops of blacks with guns drawn and fingers on apparently hair triggers. Not surprisingly, this approach is leading to shootings.
Trump also spoke of defending the right of Americans to bear arms (which apparently includes the right to bear machine guns which is what assault rifles appear to be).