On Friday, the S&P 500 was down 1.1% and Toronto was down 0.6%.
Declinming stocks included AutoCanada, down 3.6%; Canadian Western Bank down 3.0%.
Stocks that rose included Amazon, up 9.8% to $529 dollars on news that it made 18 cents per share in Q2. The stock trades at 284 times trailing earnings according to Yahoo.
Visa was up 4.2% after reporting strong earnings in Q2.
I am continuing to analyse Valeant Pharmaceuticals. It did not yet release a Q2 balance sheet. Based on its own view of cash EPS is it trading at about 23 times 2015 earnings which is perhaps not so high given its growth. However what they call cash EPS is really an adjusted view of cash flow and appears to over-state a more reasonable view of adjusted earnings.
With oil at $48 there is probably no catalyst for Alberta-linked stocks to rise, at least not until they report earnings. Auto Canada does not report until August 7, Melcor is August 11.
Canadian ire will report in the next week or two and I am interested to see if there is any sign of damage due to the lower Canadian dollar. I believe the lower Canadian dollar has to hurt them at some point as their costs of goods sold should rise and they may not be able to pass along all of the cost increase. They contract to buy merchandise at least six months ahead and that along with some hedging may explain why their has been no noticeable impact as yet.
Any American company with substantial profits earned outside the U.S. should be reporting a negative impact due to the higher U.S. dollar on their international business although in some cases such as Walmart the cost of goods sold for their American sales should be noticeably lower due to lower import costs. The U.S. should also be seeing low goods inflation due to lower import costs.