On Wednesday, the S&P 500 was down 0.3% and Toronto was down 0.6%.
Stocks that rose included Shopify – up 2.1%, Constellation Software – up 2.3%.
Couche-Tard was up 1.5% and continues to set new highs.
Toll Brothers was down 4.6% despite beating earnings expectations. It is a cyclic company and contracts for new homes are down somewhat. Those contracts turn into revenue only when the house is built and turned over to the owner which usually takes about nine months. That was expected to be the case but California is weaker than expected. I will update the report for Toll Brothers tomorrow. It continues to look under-valued. But with earnings expected to fall for the next few quarters it may remain under-valued.
CIBC’s earnings came in weak due to weaker results in its core Canadian banking. If the other banks come in weak, that will likely “hold back” the price of Canadian Western Bank even though its mix of business is quite different than the big 5’s Canadian banking.