Here are five things you need to know this morning:
Every little bit counts: U.S. inflation cooled more than expected in October (by a decimal point) to 3.2 per cent on a headline year-over-year basis. When you exclude food and energy, headline inflation is still running at four per cent, but this was a decimal point below expectations. Predictably, the markets lapped it up and futures surged after the print. Gold popped, the U.S. dollar backed down and bonds are rallying.
Teck teck boom: Shares of Teck Resources are surging after inking a deal with foe-turned-friend Glencore. The Swiss commodity giant has agreed to buy a majority stake in Teck’s coal business, with the remainder going to Japan’s Nippon Steel and South Korea’s POSCO. This marks the end of a seven-month head-to-head that saw Glencore attempt to take a run at the entire company. Teck Resources will now get a fair bit of money and says they plan to pay down debt, proceed with “significant cash return” to shareholders and fund future growth opportunities. But the deal will be scrutinized in Ottawa, and we will put that to CEO Johnathan Price who joins me on BNN Bloomberg at 10:15 a.m. ET. Don’t miss it!
What are doers doing?: Home Depot managed to beat sales and profit expectations, but the DIY crowd isn’t as robust it as was during the pandemic boom. Sales are still falling and the home improvement retailer’s sales forecast indicates caution ahead. One saving grace is that it appears investors were preparing for a worse sales decline, so shares are finding some support here. Home renovation enthusiasts are paring back their ambitions, according to the company’s CFO. Rather than gutting a whole home, they are opting for smaller jobs like tackling the kitchen or bathroom.
Sun Life misses: We will watch shares of Sun Life Financial after the insurer reported lower-than-expected third quarter profit as expenses doubled from last year. It is unclear if shares will come under pressure as most analysts are choosing to be forgiving of the earnings miss. In a note to clients this morning, Scotia said there were notable positives including peer-leading return on equity and strong performance in Asia, particularly in Hong Kong.
Taking flight: Shares of CAE could trade up after it beat profit expectations. The flight simulation company saw strong growth in both civil and defense sales. Its healthcare business continued to struggle, though the company recently agreed to sell that part of the business for $311 million
