You never know which day in the markets will offer an out-sized gain or an unexpectedly large loss. This morning I saw a headline that the US producer price index had come in significantly higher than expected. So, I figured stocks would be down today.
But it seems that the core inflation in the reported numbers was not too high and the market decided the report was good news.
So, on Thursday, the S&P 500 was up 0.8% and with higher oil prices. Toronto was up a hefty 1.4%. Most stocks were up on the day including CN Rail which rose 3.5%.
Visa Inc. was down 2.5% because some financial institutions that hold some Class B shares are going to be allowed to sell. Vaguely, I understand that this may be some of the original owners of VISA before it went public. It’s been a good thing they were not allowed to sell because holding VISA has been far smarter than selling it. A stock falling simply because some owners may sell is not something that concerns me at all. It is Visa’s earnings and growth that I look at and not who might be selling it.