Here are five things you need to know this morning:
TSX tops 24K
Canada’s benchmark stock index closed above 24,000 points for the first time on Thursday as investors responded to China’s plans to boost its economy this week, a stimulus plan that boosted base metal prices, and the stock prices of companies that provide them. The S&P/TSX Composite Index closed yesterday at 24,033.83 points -- the 26th record closing high of this year, and barely two months after the index topped the 23,000 level for the first time ever. It’s oddly appropriate that the TSX’s 24K performance is in large part gold-plated as bullion prices have been rallying for weeks and are also at record highs. With banks also rallying on rate cuts, it’s no surprise to see the TSX rallying, and many think the bull has more room to run. “Canada trades at a massive valuation discount relative to the U.S.,” AGF Investments portfolio manager Mike Archibald told Bloomberg in an interview.
That’s a lot of $1.50 hotdogs
Big box retailer Costco posted higher-than-expected profit after the bell yesterday, as moderating inflation and consumer prices prompted stronger spending and more foot traffic. The company’s profit came in at just over $2.3 billion during the quarter, better than analysts were expecting and better than the $2.1 billion during the same three-month period last year. The company said customers are buying more non-food items in stores right now, notably home furnishings and tires. The most fascinating thing about Costco is it continues to crank out reliable membership growth, which came in at morethan $1.5 billion during the quarter. That’s more than half of the company’s profit, and a reminder of what the company’s business model is — even if they’re making next to nothing, or less, on every hot dog and roast chicken they sell.
BlackBerry breaks even
The numbers at security-software company BlackBerry showed a 10 per cent surge in revenue last quarter, as the “internet of things,”and cybersecurity arms of the business took in more than expected. On an adjusted-per-share basis, the company broke even in the quarter, better than the slight loss that analysts were expecting. The company hiked its full-year forecast.
Canada’s economy grew in July
The total value of all the goods and services produced in Canada’s domestic economy grew by 0.2 per cent in July, Statistics Canada said this morning. That’s more than the flat showing in June and more than analysts were expecting, as the service sectors and goods-producing industries both grew. Retail, finance, utilitiesand the public sector led the growth, while construction shrank and wildfire activity held back activity in numerous sectors. The advance estimate for August looks flat, the data agency said.
Bristol-Myers Squibb gets major FDA OK
Shares in U.S. drugmaker Bristol-Myers Squibb are ones to watch today, after the company’s drug to treat schizophrenia was approved by the Food and Drug Administration. It’s the first new approval of a drug in seven decades for the disorder that more than three million Americans have. The shares are up about four per cent in premarket trading.
