Everything You Need to Know on Friday: Canada Retail Sales Fell 0.2% in March, Seen Recovered in April
Good morning mooers! Here are things you need to know about today's market:
● S&P/TSX 60 Index Standard Futures are trading at 1,332.40, up 0.18%
● Canada retail sales fell 0.2% in March, seen recovered in April
● Bull market 'still very young,' driven by strong earnings: Carson Group strategist
● Bond market signals rate cut from BOC by july: Analyst
● TD bank's 2Q beat not enough to shake off regulatory overhang
Market Snapshot
Today, the Canadian dollar is trading at 73.21 cents US, a slight increase from Thursday.
S&P/TSX 60 Index Standard Futures are trading at 1,332.40, up 0.18% from previous close.
Macro
Canada Retail Sales Fell 0.2% in March, Seen Recovered in April
Canadian retail sales fell more than expected in March, marking a third consecutive decline, though sales are expected to recover in April.
Sales decreased 0.2% from the previous month to a seasonally adjusted 66.44 billion Canadian dollars, the equivalent of about $48.39 billion, Statistics Canada said on Friday.
The drop was sharper than the 0.1% dip expected by economists and the data agency's preliminary estimate of little change in sales for the month. It comes after February sales edged down 0.1%.
Compared with a year earlier, retail sales in March were 1.9% higher. The agency said early indications suggest that retail sales increased 0.7% in April, though the figure was based on responses from 51% of the companies surveyed and will be revised.
Market
Bull Market 'Still Very Young,' Driven by Strong Earnings: Carson Group Strategist
A market expert has attributed the recent uptick in stock markets to robust earnings.
In a discussion with BNN Bloomberg on Tuesday, Carson Group's Chief Market Strategist Ryan Detrick expressed his belief that both Canada and the U.S. are currently experiencing a bull market, which he anticipates will persist. He noted that the advances in the U.S. stock market have been in step with "record earnings."
Detrick pointed out that the S&P 500 Index's future earnings outlook and estimates have risen approximately 2.5 percent since last March, contrasting with the mere two percent increase in S&P 500 earnings throughout 2019. He argues that these substantial earnings growth figures support the ongoing bull market.
Referring to the S&P 500 Index, Detrick mentioned its recovery since reaching a low in October 2022, suggesting that the bull market is now about 19 months into its course. His analysis of 12 post-World War II bull markets revealed that, on average, they tend to last around five years.
He emphasized that, in his view, this current bull market is still in its infancy, bolstered by strong earnings, profit margins, and continued investment. Detrick's insights follow a period of gains in both Canadian and U.S. equity markets.
Bond Market Signals Rate Cut from BOC by July: Analyst
Following Canada's recent inflation report, which was conducive to rate cuts, speculation has arisen once more about the possibility of the Bank of Canada decreasing interest rates as early as June 5. The bond market, known for its volatility, is suggesting that an interest rate cut by July is almost certain. However, it's wise to brace for potential surprises since the Bank of Canada will review additional data, including two more inflation reports, before making its next interest rate decision.
On the mortgage front, there have been a couple of significant changes this week. Notably, the lowest advertised rate for a nationally available insured five-year fixed mortgage fell by 10 basis points to 4.59 percent at Citadel Mortgages. Perhaps even more remarkable was the substantial drop of 41 basis points for their lowest advertised uninsured variable rate, which plummeted to 6.29 percent.
Stock to watch
TD Bank's 2Q Beat Not Enough To Shake Off Regulatory Overhang
Even $The Toronto-Dominion Bank(TD.CA$'s 10% beat on F2Q core per-share earnings wasn't enough to get the shares moving up after months of underperformance, though Scotiabank's Meny Grauman isn't all that surprised given the anti-money laundering program issues that have yet to be resolved. The analyst notes TD management has acknowledged U.S. branch growth will take a back seat to remediation efforts. Grauman says the selloff has gone too far and a worst-case scenario in the U.S. is already priced in, but adds the share's discount is unlikely to materially narrow until there is a resolution with regulators. Scotiabank's target on the shares is cut to C$87 from C$90.
Source: BNN Bloomberg, Dow Jones
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
Read more
Comment
Sign in to post a comment
