The Market News Reel for this week! Get the most important market news & updates for the week ahead each Monday!
Major headlines, excerpts from news sources and a link to the full article are shown below. "Breaking Thoughts" section is purely our opinion.
Canadian Bank Earnings Week, Dividend Increases Expected
"Call it a “dividend tsunami.” That’s the term one analyst is using to describe big dividend increases he believes are on the way with the upcoming results from Canada’s Big Six banks.
As investors know very well by now, the banks have been freed from an edict by Canada’s financial services regulator that they not raise dividends or buy back shares. It was a move by the regulator – the Office of the Superintendent of Financial Institutions (OSFI) – to protect capital levels amid fears of a pandemic-driven economic catastrophe.
On average, he predicts, dividends at the six banks will rise 20 per cent. That’s significantly more bullish than the consensus call of 7.1 per cent from analysts polled by Bloomberg News." - read more on BNN Bloomberg here
Breaking Thoughts: Famously, these banks were unique during the 2008 financial crisis in that they did not need to be bailed out and they did not even reduce their dividends while many global banks had to cut theirs to zero.
The strength of the big Canadian banks was shown again during the turmoil of the 2020 pandemic, as their stocks recovered and then reached new highs while paying stable dividends for 2020 and 2021.
After now a year of strong performance they are ready to return firmly to the "Dividend Growth" category, which is great news for current and future long term holders of these companies.
Stock Futures Up As New Variant Seems To Be "Mild"
"Pershing Square Capital Management founder Bill Ackman says that it will be bullish for equity markets if symptoms caused by the omicron coronavirus variant turn out to be mild to moderate, even if it’s more transmissible.
“If this turns out to be true, this is bullish not bearish for markets,” he tweeted, specifying he meant bullish for equity markets and bearish for bonds.
U.S. stock index futures rose on Monday in Asia as traders assessed the impact omicron would have on the global economic reopening given reports of the mild symptoms." - read more on BNN Bloomberg here
Breaking Thoughts: The "seesaw" of the pandemic continues, that is, the fear coming from new cases/variants leads to shutdowns (of travel, business etc.) and eventually lower cases leads to re-openings.
Last week the new South African strain sparked global travel restrictions and caused markets to reel in fear of new lockdowns or restrictions. As more information comes out its becoming more clear that this is a mild variant and that the vaccines are effective at fighting it.
We hope that soon the media, politicians and health officials realize that its NOT March 2020 anymore. Much of the developed world is well above 80% (of adults) vaccinated, many more countries are above 60% and climbing, there are at least 8 different globally approved vaccines available, there are two anti viral medications, and finally our societies are more resilient to disease spread (via better sanitation etc.) than ever before.
Its time we reopen for good, and let our technologies (vaccines, antivirals, improved sanitation etc.) handle the rest.
Major Earnings This Week
Monday November 29:
Stonex Group (SNEX): Expected Q4 earnings of $1.44 per share
Trip com Group (TCOM): Expected Q3 earnings of $0.07 per share
Tuesday November 30:
Box (BOX): Expected Q3 earnings of $0.21 per share
HP Enterprise (HPE): Expected Q4 earnings of $0.49 per share
Salesforce (CRM): Expected Q3 earnings of $0.92 per share
Bank of Nova Scotia (BNS): Expected Q4 earnings of $1.92 per share
Wednesday December 1:
BRP (DOOO): Expected Q3 earnings of $1.34 per share
Constellation Brands (STZ): Expected Q3 earnings of $2.85 per share
Crowd Strike (CRWD): Expected Q3 earnings of $0.10 per share
Royal Bank of Canada (RY): Expected Q4 earnings of $2.81 per share
Snowflake (SNOW): Expected Q3 earnings of $-0.06 per share
Thursday December 2:
CIBC (CM): Expected Q4 earnings of $3.55 per share
Docu Sign (DOCU): Expected Q3 earnings of $0.46 per share
Dollar General (DG): Expected Q3 earnings of $2.14 per share
Kroger (KR): Expected Q3 earnings of $0.66 per share
Marvell Technology (MRVL): Expected Q3 earnings of $0.47 per share
TD Bank (TD): Expected Q4 earnings of $1.97 per share
Friday December 3:
Bank of Montreal (BMO): Expected Q4 earnings of $3.22 per share
Major IPOs Expected This Week
None
See you next week!
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