Markets rebounded somewhat on Monday as the S&P 500 rose 1.2% and Toronto rose 0.6% (in spite of oil being down about $3.00)
The great majority of stocks were up on the day.
Aecon Group bounced up 6.7% presumably becasue analysts have had time to further digest its disappointing Q3 earnings released last week. Perhaps they see some hope as they peer through the gloom.
Meanwhile bond yields were up moderately on the day and that’s not good news for stock (or bond) prices.
Markets in North America seem to be largely ignoring the situation in Israel – at least so far.
The market now awaits the news from the FED on Wednesday and is assuming no change to interest rates but will focus on any comments indicating whether the FED is likely to hike in December or not.
With the cooling economy, I do worry how the report from Canadian Tire Q3 will come in. Headwinds include possible credit card delinquencies, the lower Canadian dollar and possibly cooler consumer spending. The stock is way down from its highs but can always go lower on bad news. As usual, I am hanging on tight to my shares. Canadian Tire has been very well managed and hopefully they can adjust to changing conditions.
RioCan will release Q3 results after the close on Thursday. I’m hopeful for good results given their high occupancy rates and given the quality of their assets and their management.
The Melcor REIT will also release results after the close on Thursday. Hopefully there can be some assurance that they will not need to cut the distribution but I’m not sure. Most of their retail assets are quite good but they also have some older strip malls and they definitely have some problematic office buildings. I would hope that this is more than reflected in the low unit price but we shall see.