The TSX added 30 points on Monday, as tech shares rose, and investors eagerly looked toward Tuesday’s latest Canadian inflation data. It was the TSX’s seventh straight day of gains –the longest winning streak since last May. In the U.S., markets were closed for the Martin Luther King Jr. holiday.

U.S. stock indexes were mixed Tuesday, following sharply lower earnings from Goldman Sachs and Morgan Stanley, along with Chinese data that revealed a drastic slowdown in economic growth. By Tuesday’s close, the Dow had fallen nearly 400 points, the S&P 500 drifted 8 points lower, and the Nasdaq rose 16 points, thanks largely to rising Tesla shares. The TSX rose for the eighth day in a row, as Canadian inflation fell to 6.3% in December, helped by falling gas prices. Given Tuesday’s data, many analysts are expecting a 25-basis-point hike when the Bank of Canada meets next week.

There were red numbers all around in Wednesday trading as weak U.S. economic data stoked fears of a recession. According to the U.S. Commerce Department, retail sales fell 1.1% in December, with higher interest rates and inflation hurting spending on cars, gas and big-ticket items, like furniture. The news sent investors flocking into U.S. Treasurys, as 10-year yields tumbled 16 basis points to 3.374%. Although losses for the TSX were relatively minor (0.4%), it was a different story for the Dow, which declined 614 points (1.8%). Meanwhile the Nasdaq fell 138 points, and the S&P 500 lost 62.

U.S. stocks registered modest losses Thursday as economic data and corporate-earnings reports failed to provide a clear picture of the U.S. economy. While jobless claims fell in the U.S., the latest earnings reports have been mixed. In Canada, the TSX dropped 35 points by Thursday’s close.

Finally, as the U.S. government is about to run up against the debt limit, the Treasury Department is expected to begin deploying “extraordinary measures” in order to keep paying obligations to bondholders, Social Security recipients and others. Lawmakers and the Biden administration have roughly five months to pass legislation to avoid defaulting on the debt.

Read more

source https://rosenbergdri.ca/markets-begin-to-wobble-over-fears-of-recession/

U.S. stocks pared some of their early Monday gains, with investors still unsure about the Fed’s future path of rate hikes. The S&P 500 ended flat, the Dow fell 113 points, while the tech-focused Nasdaq gained 66. The TSX rose on Monday to its highest closing level in nearly four weeks, up 42 points, as investors went bargain shopping.

On Tuesday the World Bank cut its growth forecast for the global economy in 2023 as inflation has elevated the risk for a worldwide recession. The bank expects global growth to slow to 1.7% in 2023, down from its estimate of 3% growth in June. U.S. stocks took the news in stride, with all three major U.S. indexes registering modest gains. In Canada, the TSX added another 42 points in Tuesday’s session.

It was an even stronger session for U.S. stocks on Wednesday, as investor optimism grew that Thursday’s inflation data would lead to a less hawkish path for the Fed. The S&P 500 gained 50 points, the Dow added 269, while the Nasdaq jumped 189 points. The TSX rose 126 points, buoyed by a strong performance in the real estate sector.

Thursday’s U.S. inflation data showed that U.S. inflation fell to 6.5% in December year over year, down from 7.1% in November and well below the 9.1% peak seen in June. Meanwhile, Core CPI, which strips out food and energy prices, climbed 5.7% in December, down from November’s 6% gain. Thursday’s Labor Department data has raised expectations that the Fed will opt for a smaller 25-basis-point hike in February.

The latest U.S. inflation numbers helped North American markets to solid gains on Thursday, with the energy sector posting a strong performance. By Thursday’s close, the Dow was up 216 points, the S&P 500 added 13, and the Nasdaq rose 69 points. In Canada, the TSX kept marching higher, posting a gain of 186 points. Finally, investors snapped up U.S. Treasurys, lifting bond prices and weighing on U.S. 10-year yields, which declined to 3.48% on Thursday.

Read more

source https://rosenbergdri.ca/hopes-for-less-aggressive-fed-grow-as-u-s-inflation-slows-in-december/

You’re busy raising your children and trying to help your parents as they age. Being a part of the “sandwich” generation is a balancing act.

Before you start focusing on how best to help your children and parents, pay close attention to your own situation. Below are some tips that you might find beneficial.

Create/review your Total Wealth Plan:

A plan is your personal financial roadmap¹. First, sit with your advisor to review your existing plan. Are you on track? Do you need to adjust the plan? If you don’t have a plan, contact our office to have one completed, you’ll be glad you did.

Registered Retirement Savings Plans (RRSPs)² and/or Tax-Free Savings Accounts (TFSAs):

RRSPs and TFSAs each have unique benefits and features. The main advantage of these investment account types is the tax-deferred growth with an RRSP and the tax-free growth with a TFSA³. In both cases, there is no need to report annual investment income. Work with your wealth advisor to determine which option or combination of options is best for you.

Pay down debt:

You’re in your prime working years now, and having the debt paid off for retirement would be a significant achievement. First, look at your current debt repayment structure to see if there’s room for improvement. Perhaps you can negotiate a lower interest rate. Consolidate debt so it’s more easily managed. For example, switching mortgage payments to bi-weekly instead of monthly might not seem like much, but it has a significant impact. A standard 25-year mortgage amortization is reduced to slightly over 21 years by making bi-weekly payments rather than monthly payments. Think of all the interest that will be saved! Sit down with your wealth advisor to review your debt repayment strategy.

Insurance:

Most financial recommendations are dependent on you having financial resources – most likely, that means a steady paycheck. But, what happens if you cannot work for a period? Or pass away? What would the impact be on your family? Disability, Critical Illness and Life Insurance⁴ are all uniquely positioned to protect you and your family. Speak to your advisor about reviewing your insurance needs.

Estate planning:

Employer-sponsored plans:

One often-overlooked benefit is employer-sponsored saving programs. Perhaps your employer has a pension plan program or a saving program where they match your contributions. Check if your employer has any such programs, and be sure to enrol if they do.

You may not need to have a detailed estate plan at this point, but having a Will and Powers of Attorney (POAs)⁵ is a must, regardless of age. In addition to having a Will and POAs, review all your accounts/products for which you can designate a beneficiary and ensure you have a beneficiary listed.

With respect to helping your children, consider the following:

Financial literacy:

Perhaps the most important thing you can do to help your children is to teach them some finance basics. Focus on the most relevant topics for your children; bank accounts, credit cards, car loans and student loans are great topics to explore. Speak with your wealth advisor for some tips.

Allowances:

Providing your child(ren) with an allowance, or having them get a job, is a great way to teach children about money. Having them assume responsibility for some of their expenses will teach them the value of money, the difference between a need and want and the lesson of deferred gratification.

An RESP is an excellent tool to help save for your children’s post-secondary education. The government provides a grant of 20% up to $500 per year for each dollar you contribute to the plan (up to the end of the year your children turn 17). The lifetime contribution limit to a plan is $50,000 per beneficiary and the lifetime grant limit is $7,200.

RESPs:

An RESP is an excellent tool to help save for your children’s post-secondary education⁶. The government provides a grant of 20% up to $500 per year for each dollar you contribute to the plan (up to the end of the year your children turn 17). The lifetime contribution limit to a plan is $50,000 per beneficiary and the lifetime grant limit is $7,200.

Accumulate RRSP contribution room:

Many teens start working part-time. If your child earns an annual income below the basic personal exemption ($12,298 for 2020), they may not need to file a tax return. Even though it may not be required, it can benefit them in the long run, to file a return since they will start accumulating RRSP contribution room⁷. Since accumulated RRSP contribution room can be carried forward, your child can potentially make larger RRSP contributions in the future when they enter the workforce full time.

TFSA for adult children:

It may not seem like it, but they are considered an adult when your child reaches 18 years of age. Regardless of the debate of whether they are or are not an adult, if you have the resources available, funding a TFSA for your child⁸ is an excellent way to support them. You can’t technically deposit into your child’s TFSA account, so your child will need to open an account independently. From there, you can gift them funds to deposit into the TFSA. The funds in the TFSA will grow tax-free, and if they start at age 18, the potential for compounded, tax-free growth is powerful.

With respect to helping your parents, consider the following:

Open communication:

It may seem odd to have a financial discussion with your parents at first but being open is essential. Until you understand their situation, you aren’t really equipped to help. So sit down with your parents and chat about their needs, goals and resources.

Financial inventory:

Gain an understanding of your parent’s financial situation – assets, liabilities, income and expenses. Also, know where important documents are kept so you can access them easily if needed.

Living arrangements:⁹

Your parents may be at the point in their lives where they would like to downsize. Perhaps they are determined to stay where they are. Maybe they want to move to a retirement community. Maybe they want to move in with you – gulp. Discuss what they would like with your parents and look at potential options with them.

Estate planning:¹⁰

Much like having your own Will and POAs drafted, your parents must do the same. If they already have these documents in place, have them review them to ensure they are still relevant and reflect their wishes. Discuss what their wishes would be should they not be able to manage their own affairs. Know where these important documents are kept – you’ll have enough to worry about if they’re ever needed, and locating them shouldn’t be one of the worries.

Insurance:

Your parents may not need insurance as a form of income replacement in the same respect you might. However, that does not mean they can’t benefit from insurance. Life insurance¹¹ can protect the value of your parents’ estate. Since most assets are considered disposed of when you pass away, there can be significant taxes on an estate. A tax-free life insurance payout can assist in preserving the value of your parents’ estate by replacing what is lost with taxes. If your parents are under the age of 70, Long Term Care Insurance is also worth considering; private nursing homes can be pretty expensive and deplete a person’s savings in a hurry. Long Term Care Insurance can provide coverage if your parents cannot care for themselves and/or need assistance managing daily living activities.

Summary

Being part of the sandwich generation has its challenges. Between managing the finances of your aging parents, your children, and your own, you may find yourself overwhelmed at times. Meeting with our team to review these tips may help alleviate some of your stresses.

Contact our office today.

¹ https://richarddri.ca/is-my-financial-plan-crisis-proof/
² https://richarddri.ca/how-to-maximize-your-rrsp-contributions/
³ https://richarddri.ca/taking-advantage-of-tfsas/
⁴ https://richarddri.ca/insurance-plans-for-the-sophisticated-investor/
⁵ https://rosenbergdri.ca/the-role-of-power-of-attorney/
⁶ https://richarddri.ca/resps-and-other-ways-to-save-for-learning/
⁷ https://rosenbergdri.ca/how-to-maximize-your-rrsp-contributions/
⁸ https://richarddri.ca/taking-advantage-of-tfsas/
⁹ https://rosenbergdri.ca/planning-how-to-care-for-aging-parents/
¹⁰ https://richarddri.ca/why-you-dont-want-to-die-without-a-will/#full-text
¹¹ https://richarddri.ca/wondering-about-buying-life-insurance-here-are-some-things-to-consider/

source https://rosenbergdri.ca/caught-in-the-middle-financial-strategies-for-the-sandwich-generation/

You have goals for all aspects of your life—your family, your business, and your future. A Total Wealth Plan can identify how your wealth can help you achieve those goals and live the life you want.

More than just a typical financial plan, it’s an innovative team-based approach that puts your life’s priorities at the centre of your wealth, whether you’re saving for retirement, transitioning your business or putting a child through college.

It all starts with our specialists who collaborate with you to understand everything that makes you unique, from your relationships and career to your personal dreams. From there, we offer strategies and insights to help you achieve what matters most to you. The mission is to provide you with a well-rounded roadmap that guides you through your life’s financial journey.

Here are eight key areas that can make up your Total Wealth Plan.

Understanding how much income you need in retirement¹

When you’re working, your expenses are closely linked to your income level. Once you retire, you will want your resources to support you in the lifestyle you want for the rest of your life. How do you factor in other income sources, such as registered retirement accounts², pension plans, government benefits and non-registered investments? A Total Wealth Plan can help you ensure you have enough income to achieve your personal goals and dreams when you retire.

Don’t overpay on taxes³

A personalized tax plan can be used to increase your assets and overall wealth. Your Total Wealth Plan can include different strategies to reduce, defer or even invest tax-free. It can also offer options designed to deliver a regular stream of tax-efficient retirement income.

Understand your pension options

Pension plans can be highly complex, and the decisions you make could have a direct impact on your retirement income. For example, should you take the commuted value of your pension in a lump sum or opt to receive a monthly pension payment? These are not easy questions to answer on your own. That’s why a Total Wealth Plan can help guide you through the process, ensuring you consider your risk tolerance, estate considerations, survivor benefits and your dependency on pension income.

Diversify to reduce risk

Diversifying your portfolio is an important investment strategy⁴ to reduce and manage risk. By investing widely across different investments, your portfolio may experience a smoother, more consistent investment over time. A Total Wealth Plan considers your goals, investment time horizon and risk tolerance to help facilitate the creation of a properly diversified portfolio in line with your financial and lifestyle objectives.

Security and peace of mind

You work hard to build a secure financial foundation for you and your family, so you want to ensure that you’re protected against any risk that could negatively impact your progress. With a Total Wealth Plan, you can make informed decisions about your financial risks and the insurance coverage⁵ you need to protect against those risks, whether it’s life, disability or critical illness. As you move through the life stages, financial risks evolve to protecting against the erosion of the wealth you have accumulated. In this case, a Total Wealth Plan can help identify how insurance can provide a tax-efficient way to transfer your wealth to the next generation.

Plan your estate

It’s hard to think about estate planning⁶—even though we know putting our finances and legal affairs in order helps our heirs in the emotional aftermath of your passing. A Total Wealth Plan is your opportunity to make your intentions clear and ensure that your beneficiaries – whether it’s family or a charitable organization – receive their inheritance based on your wishes.

Transition your business smoothly

If you’re like most successful business owners, you probably haven’t had a lot of time to plan what happens to your business when you’re ready to retire. But planning how you want to transition your business⁷ now can help you achieve substantial savings and maintain greater control. Otherwise, you risk having someone else deciding what happens to your business. A Total Wealth Plan can help create a smooth business transition, reduce the tax impact of an ownership change and enhance the value of your business today.

Develop a gifting legacy

Many of us support charities throughout our lifetime and would like to leave something in our Will to a cause that is meaningful to you. A gifting plan⁸ can help as your estate may realize a tax benefit if specific bequests are made to charities, reducing some of the estate taxes. As well, many charitable organizations, including post-secondary institutions, allow you to set up endowed bursaries in your memory that can continue in perpetuity, subject to adequate funding. Your Total Wealth Plan can help you make the best use of your resources over your lifetime while ensuring that you leave a meaningful and impactful legacy for years to come.

Why use a professional Total Wealth Planner

As our lives become busier and the financial world becomes increasingly complex, it can be challenging to put your finances in order. A Total Wealth Planner is there to work with you to understand what’s most important to you. From there, they bring our team of specialists together to create a cohesive roadmap that evolves as your life changes.

With our innovative team-based approach, you can reach your goals with confidence and peace of mind.

Contact our office today

¹ https://rosenbergdri.ca/retirement-tax-planning-tips-sources-of-retirement-income/
² https://richarddri.ca/how-to-maximize-your-rrsp-contributions/#full-text
³ https://richarddri.ca/whats-your-tax-rate/
⁴ https://richarddri.ca/why-financial-planners-love-dividend-growth-investing/
⁵ https://richarddri.ca/wondering-about-buying-life-insurance-here-are-some-things-to-consider/
⁶ https://richarddri.ca/a-financial-advisor-answers-the-top-questions-about-estate-planning/#full-text
⁷ https://richarddri.ca/5-financial-mistakes-that-business-owners-should-avoid/
⁸ https://richarddri.ca/get-tax-incentives-while-you-give-back/

source https://rosenbergdri.ca/building-a-total-wealth-plan-for-life/

U.S. stocks drifted lower Tuesday to kick off the new year, pulled down by heavyweight names like Tesla and Apple.

Shares in Tesla closed down 12% after hitting their lowest level since August 2020, while Apple sank nearly 4% on a new forecast citing weaker demand. By Tuesday’s close, the Dow and S&P 500 had fallen slightly, while the Nasdaq dropped 80 points. In energy markets, Brent crude fell 4% to $82 a barrel, the steepest one-day decline since September. Despite falling oil prices, the TSX added 59 points, buoyed by rising gold prices, which approached US$1,850 per ounce.

U.S. stocks registered modest gains Wednesday, as investors surveyed mixed economic data. Although U.S. manufacturing activity slowed to its lowest level since May 2020, U.S. labor demand remained strong in November and December, according to the U.S. Labor Department. Meanwhile, the release of the Fed’s latest minutes from its last meeting reaffirmed its commitment to higher rates, which helped pare gains in late trading. By Wednesday’s close, the Dow was up 133 points, the S&P 500 added 29, and the Nasdaq rose 72. In Canada, the TSX hit its highest closing level in nearly three weeks, up 145 points, thanks largely to gold-mining shares.

U.S. stocks fell Thursday, as strong labor-market data reinforced the case for the Fed to keep rates high in the fight against inflation. That was especially bad news for the Nasdaq, which shed roughly 1.5% by Thursday’s close, while the Dow and S&P 500 surrendered a bit over 1% each. In Canada, the TSX also lost ground, dropping 82 points on mining and tech weakness.

Looking back on 2022, it was an especially painful year for equities. The S&P 500 dropped 19.4%, while the Nasdaq fell 33%, as growth stocks were continually battered by rising rates. Meanwhile, losses for the Dow and TSX were a bit more modest, at 8.8% and 8.7%, respectively.

U.S. Indexes Lose Ground; TSX Up Slightly

For the three trading days covered in this report, the Dow lost 217 points to close at 32,930, the S&P 500 dropped 31 points to settle at 3,808, while the tech-heavy Nasdaq sunk 161 points to close at 10,305. In Canada, the TSX gained 122 points to end at 19,507.

Read more

source https://rosenbergdri.ca/markets-struggle-for-direction-in-first-week-of-2023/

Major U.S. indexes inched up Monday, and bond yields hit their highest level in over a decade as investors awaited the Fed’s latest interest-rate hike on Wednesday.

The Dow, S&P 500 and Nasdaq registered solid gains, while the TSX rose 176 points, buoyed by energy, financials and industrials. In U.S. bond markets, 10-year Treasury yields rose to 3.489%, the highest level since 2011, while the two-year note climbed to 3.946%, its highest level since 2007.

U.S. indexes opened Tuesday morning in the red and stayed there throughout the day as the Fed’s impending decision continued to weigh on markets. The Dow dropped 313 points, while the S&P 500 and Nasdaq surrendered 44 and 110, respectively. In Canada, the TSX fell 194 points in a broad-based selloff.

Also, on Tuesday, Statistics Canada reported that the country’s annual headline inflation rate slowed to 7% in August, down from 7.6% in July, thanks mainly to lower gasoline prices.

On Wednesday, U.S. stocks fell sharply after the Fed, as expected, announced another 75-basis-point hike. The Fed’s decision will bring its benchmark rate to a range of 3% to 3.25%, its highest level since 2008. U.S. stocks traded higher early in the morning, then dropped shortly after the Fed’s announcement. Although they rallied a bit later, indexes fell during the session’s final hour. By Wednesday’s close, the Dow had plummeted 522 points, the S&P 500 dropped 66, and the Nasdaq was off 205 points. In Canada, the TSX declined 184 points on energy sector weakness.

North American stock indexes struggled Thursday as worries over higher rates and a possible U.S. recession weighed on performance. By Thursday’s close, all four major North American indexes recorded modest losses, while 10-year U.S. Treasury yields settled at 3.705%, their biggest one-day gain since June.

N.A. Indexes Drift Lower

For the four trading days covered in this report, the Dow lost 745 points to close at 30,077; the S&P 500 dropped 115 points to settle at 3,758, while the tech-heavy Nasdaq sunk 381 points to close at 11,067. In Canada, the TSX lost 383 points to end at 19,003.

Read more

source https://rosenbergdri.ca/markets-wobble-as-fed-raises-rates-another-75-basis-points/

U.S. stocks extended their decline Monday and the Dow entered bear-market territory, as investors continue to worry about slowing global growth and the Fed’s ongoing efforts to tame inflation.

Meanwhile, 10-year U.S. Treasury yields rose to 3.878%, their highest level since 2010. By Monday’s close, the Dow had fallen 330 points, while the S&P 500 and Nasdaq dropped 38 and 65 points, respectively. The TSX logged its fifth straight day of losses, falling 154 points.

Market confidence was also shaken somewhat this week after the British government last Friday unveiled the country’s biggest tax cuts since the early 1970s, which rattled investors and sparked the biggest one-day selloff of the pound since March 2020.

On Tuesday the Dow sank deeper into a bear market, while the S&P 500 recorded its lowest close in almost two years. The Nasdaq was up slightly, adding 27 points, while the TSX finished lower for a sixth straight session. Meanwhile, 10-year U.S. Treasurys climbed even higher.

U.S. and Canadian stock indexes finally regained ground on Wednesday, and longer-term bond yields fell sharply after the Bank of England pledged to buy U.K. government bonds with long maturities “on whatever scale is necessary.” By Wednesday’s close, the Dow had jumped 549 points, while the S&P 500 and Nasdaq climbed 72 and 222 points, respectively. In Canada, the TSX added 341 points.

Any optimism for a sustained rally vanished on Thursday, however, as U.S. and Canadian markets fell sharply once again on concerns over global growth and inflation. By the end of Thursday’s trading, the Dow had plunged 458 points, while the Nasdaq and TSX fell 314 and 207 points, respectively.

Finally, surging yields and mounting volatility in government bond markets are intensifying fears on Wall Street that this year’s wild swings could further destabilize financial markets.

Losses Keep Mounting for North American Indexes

For the four trading days covered in this report, the Dow lost 363 points to close at 29,227, the S&P 500 dropped 52 points to settle at 3,641, while the tech-heavy Nasdaq sunk 131 points to close at 10,737. In Canada, the TSX lost 39 points to end at 18,442.

Read more

source https://rosenbergdri.ca/dow-enters-bear-market-u-k-tax-cuts-rattle-bond-markets/

U.S. and Canadian stocks started Q4 with a bang, a real relief for investors after an especially tough Q3.

The Dow finished 2.7% higher, the S&P 500 added 2.6%, while the Nasdaq and TSX rose 2.3% and 2.4%, respectively. The TSX’s biggest percentage gain since late April 2020, helped largely by an almost 6% gain in the energy sector. In the U.S., 10-year Treasury yields dropped to 3.65% from 3.80% Friday.

U.S. stocks surged again on Tuesday in a broad-based rally, extending the strong start to Q4. The Dow climbed 825 points, the S&P jumped 112, and the Nasdaq rose 361 points. Combined with Monday’s rally, it was the best two-day performance for the Dow since April 2020. Positive sentiment in the U.S. was lifted by new data showing that the U.S. labour market may be starting to cool. On Monday, another report showed U.S. manufacturing growth had also declined, perhaps making a case for less aggressive hikes by the Fed. In Canada, the TSX added 490 points on energy strength and a 12% jump in shares of Shopify.

Unfortunately, the two-day rally fizzled out on Wednesday after data showing strong U.S. labour demand again suggested the Fed will maintain its aggressive rate-hike trajectory. In U.S. bond markets, the yield on 10-year Treasurys climbed back to 3.76%. By Wednesday’s close, losses for the three major U.S. indexes were modest, while the TSX dropped 136 points.

U.S. and Canadian stock markets surrendered a bit more ground on Thursday as recession fears continue to weigh on sentiment. By Thursday’s close, the Dow declined 347 points, while the S&P 500 and Nasdaq dropped 39 and 75 points, respectively. In Canada, the TSX lost 256 points, weighed down by weakness in the financials and consumer staples sectors.

Markets Gain Ground Early in Q4

For the four trading days covered in this report, the Dow gained 1,202 points to close at 29,927, the S&P 500 rose 160 points to settle at 3,745, while the tech-heavy Nasdaq added 498 points to close at 11,073. In Canada, the TSX climbed 535 points to end at 18,979.

Read more

source https://rosenbergdri.ca/markets-struggle-for-traction-after-strong-start-to-q4/

U.S. stocks fell Monday as concerns about Fed tightening, a possible recession and an escalating Ukraine war continue to rattle markets.

The Nasdaq fell 110 points on Monday, hitting its lowest closing value since July 2020. Meanwhile the Dow slipped 94 points, and the S&P 500 dropped 27. The TSX was closed for trading on Monday.

The S&P 500 and the Nasdaq fell again Tuesday in volatile trading, perhaps stoked by Bank of England Governor Andrew Bailey’s warning that the central bank’s plan to rescue pension funds hit by interest-rate increases will end Friday, as scheduled. Bailey’s comments raised the prospect of more chaos in global bond markets and weighed on Wall Street sentiment.

By Tuesday’s close, U.S. stocks were mixed. The Dow climbed 36 points, the S&P 500 lost 23, and the Nasdaq dropped 116 points, falling into bear-market territory for the second time this year. Meanwhile the TSX plunged 366 points on Tuesday, hitting its lowest closing level since March 2021.

U.S. and Canadian stock indexes registered minor losses on Wednesday as investors anxiously awaited Thursday’s latest U.S. inflation data. Heightening investor worries was Wednesday afternoon’s release of the Fed’s September minutes, which showed officials remain acutely concerned over the threat of high inflation.

According to data released Thursday morning, overall U.S. inflation rose 8.2% in September (year over year), which was slightly down from August’s 8.3% pace. More troubling, however, was the latest core inflation reading, which strips out energy and food prices. The core index climbed 6.6% (year over over), the fastest pace of annual increase since 1982.

Although North American equity markets fell sharply Thursday in early trading, indexes stabilized after the selloff, mounting an almost inexplicable comeback throughout the day. By Thursday’s close, the Dow had surged more than 800 points, the S&P 500 jumped 93, and the Nasdaq climbed 232 points. In Canada, the TSX also turned in a strong performance, adding 407 points, buoyed by energy and financials.

Dow, TSX and S&P 500 Gain Ground; Nasdaq Slightly Off

For the four trading days covered in this report, the Dow rose 742 points to close at 30,039, the S&P 500 added 30 points to settle at 3,670, while the tech-heavy Nasdaq inched 3 points lower to close at 10,649. In Canada, the TSX climbed 31 points to end at 18,614.

Read more

source https://rosenbergdri.ca/markets-volatile-as-u-s-core-inflation-increases-in-september/

U.S. stocks surged Monday, buoyed in large part by strong earnings from some of the biggest U.S. banks.

The Dow jumped 551 points, the S&P 500 added 95, and the Nasdaq shot up more than 350 points. It was also a strong day for the TSX, which climbed nearly 300 points, on strength in tech and financials. In the U.K., government bonds rallied after the government said it was reversing nearly all its proposed tax cuts, which had sent U.K. markets into turmoil over the past few weeks.

U.S. and Canadian stocks closed higher for a second straight day on Tuesday as solid quarterly earnings from key financial and industrial names fueled positive momentum. In Canada, the TSX closed 177 points higher in a broad rally, led by the industrials sector.

North American stock indexes ran out of steam Wednesday as recession fears continue to mount. The S&P 500 declined nearly 1%, the Nasdaq fell 1.2%, and the Dow dropped 0.5%. In bond markets, 10-year U.S. Treasury yields hit their highest level in more than 14 years, while 5- and 10-year Canadian Treasury yields were also rising at a brisk pace.

Statistics Canada reported Thursday that the Consumer Price Index (CPI) for September came in at 6.9% (year over year), slightly higher than economists’ forecasts. Core CPI, which excludes food and energy prices, rose 5.4%. Given the latest numbers, expectations are rising for a 75-basis-point hike at the Bank of Canada’s next policy meeting.

U.S. and Canadian stocks registered moderate losses Thursday as investors continue to assess corporate earnings and the likelihood of recession in 2023. By Thursday’s close, the Dow lost 90 points, while the S&P 500 and Nasdaq dropped 29 and 66 points, respectively. The TSX also drifted lower Thursday, losing 95 points.

Finally, U.K. Prime Minister Liz Truss said Thursday that she would resign, making her the shortest-serving prime minister in British history, after a chaotic six weeks filled with economic and political turmoil caused largely by proposed tax cuts.

Markets Gain Ground as Earnings Season Begins

For the four trading days covered in this report, the Dow gained 698 points to close at 30,333, the S&P 500 rose 82 points to settle at 3,665, while the tech-heavy Nasdaq added 294 points to close at 10,615. In Canada, the TSX climbed 253 points to end at 21,058.

Read more

source https://rosenbergdri.ca/strong-earnings-give-markets-a-boost-but-recession-fears-continue-to-weigh/