Featured in this report
Midday market performance update Canadian equities:
< Market summary
< Companies in the news: CSH-U
U.S. equities:
< Market summary
< Companies in the news: AVGO, COST
International equities: < Market summary
< Company in the news: AZN
Midday market performance update
S&P 500 NASDAQ S&P/TSX Index Stoxx Europe 600 Nikkei 225 Shanghai Comp
0.7% 0.2% 0.7% -0.8% -0.2% 0.0%
3,502 Intraday returns
3,795 12,751 18,261 409 28,864
Bar charts display current values relative to 52-week ranges. Low 0.23 1.5% High 1.54 Low 0.31 1.56% High 1.62 Low 0.68 $0.79 High 0.8 Low 1451.55 $1697.93 High 2075.47 Low 28.15 $65.74 High 66.23 Low 102.22 103.37 High 117.06
Canada 10-year yield U.S. 10-year yield
CAD/USD USD (trade-weighted)
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Canadian equities
< Canadian equities, as measured by the S&P/TSX Composite Index, are trading higher at midday.
< Six of the index’s eleven sectors are lower, with the Information Technology sector seeing the largest losses.
In corporate news:
Chartwell Retirement Residence (CSH-U)
< Chartwell Retirement Residence reported Q4/20 results that saw funds from operations per unit (FFOPU) exceeding consensus expectations due to contribution from acquisitions and developments, but this was down 16.7% YoY on the back of lower occupancy, higher financing costs and COVID related expenses. CSH said that the vaccine rollout is progressing well as 84% of residents in its LTC facilities have received two doses of the vaccine (90% have received at least one). 23% of retirement residents received two doses (84% received at least one). In the second wave of lockdowns, the pace of MoM occupancy declines accelerated in December, January and February to -0.7%, -1.0%, and -1.1%, respectively. As of February 28th, same property occupancy was at 78.7%. CSH expects LTC occupancy to recover in FY21 as the wait list is 8.6% higher than pre-pandemic levels. In January, the Ontario government pledged $542 million in addition funding for LTC to help with COVID-19 costs and occupancy changes, which should help stabilize margins for the segment. CSH’s liquidity position remains firm as it has access to $516.2 million in cash and equivalents (on March 4th), which can cover the $203 million in debt due in FY21. CSH-U shares are trading relatively flat at midday.
S&P/TSX biggest movers
Last price %∆
Riocan Real Estate Investment Trust 18.80 17.5% 17.5%
Methanex Corp 51.33 5.0% 5.0%
Crescent Point Energy Corp 5.33 4.9% 4.9%
Hudbay Minerals Inc 8.48 3.9% 3.9%
Quebecor Inc 33.87 3.9% 3.9%
Aphria Inc 17.92 -15.2% 15.2%
Lightspeed Pos Inc 67.43 -13.3% 13.3%
Martinrea International Inc 13.38 -12.0% 12.0%
Ballard Power Systems Inc 26.47 -11.8% 11.8%
Shopify Inc 1,305.40 -10.3% 10.3%
S&P/TSX Composite Index Intraday (1:00 PM)
Level Pts Chg % Chg 18,249 123.6 0.7% Issues < Advancing 84 < Declining 133 < Unchanged 1 Index stats: < 1-yr return 10.2% < P/E 26.7x < Dividend yield 2.9% 100 250 400 550 700 850 1,000 11,000 13,000 15,000 17,000 19,000
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U.S. equities
< U.S. equities, as measured by the S&P 500 Index, are trading higher at midday as investors pondered the ramifications of higher interest rates and inflation, while a stronger-than-expected jobs report helped support sentiment.
< Seven of the index’s eleven sectors are trading higher, with the Energy sector up ~2.1%.
In corporate news:
Broadcom Inc. (AVGO)
< AVGO reported Q1/21 results that beat consensus estimates on both the top and bottom lines. Revenues of US$6.61 billion and adjusted EPS of US$3.05 beat Bloomberg consensus estimates of US$6.57 billion and US$3.00, respectively. Semiconductor Solutions revenues grew 17% y/y to US$4.91 billion, while Infrastructure Software revenues grew 5% y/y to US$1.75 billion. The company generated US$3.00 billion of free cash flow compared to US$2.21 billion in Q1/20. "We executed well during our first fiscal quarter driving 14% organic growth year on year," President and CEO Hock Tan said in a statement. "This growth reflects the critical role our technology franchise plays in this environment of accelerated digital transformation,” he added. AVGO provided Q2/21 guidance, with revenues of US$6.50 billion and adjusted EBITDA margin of 59% expected. The company also approved a quarterly cash dividend on its common stock of $3.60 per share. AVGO shares are trading lower at midday.
Costco Wholesale Corp. (COST)
< COST reported mixed Q2/21 results as revenue beat consensus estimates by ~1%, but continued COVID related expenses resulted in an EPS of $2.14, below consensus of $2.45. Excluding the COVID related costs, EPS would have been $2.55, exceeding estimates and up 21% YoY. Gross margin was largely flat YoY as ancillary margin compression offset efficiency gains seen in fresh food. SG&A was higher than expected due to incremental wages related to COVID, which exceeded gains in operating efficiencies. COVID related expenses should drop significantly in the next quarter as the extra $2/hr wage supplement was discontinued Feb 28th. Costco continues to increase its membership base from 59.1 million to 59.7 million households, up ~1.0% QoQ. Renewal rates for the U.S/Canada and Worldwide was up 10bps to 91.0% and 88.5%, respectively. COST did not open any new stores this quarter. COST shares are trading lower at midday.
S&P 500 biggest movers
Last price %∆
Tyler Technologies Inc 409.92 8.0% 8.0%
Cboe Global Markets Inc 105.38 7.3% 7.3%
Nov Inc 16.51 7.1% 7.1%
Oracle Corp 70.00 6.7% 6.7%
Diamondback Energy Inc 86.25 6.1% 6.1%
Norwegian Cruise Line Holdings Ltd 27.75 -15.7% 15.7%
Carnival Corp 24.36 -11.1% 11.1%
Royal Caribbean Cruises Ltd 82.37 -10.1% 10.1%
Enphase Energy Inc 134.82 -10.0% 10.0%
Tesla Inc 566.53 -8.8% 8.8%
S&P500 Index Intraday (1:00 PM)
Level Pts Chg % Chg 3,796 27.4 0.7% Issues < Advancing 222 < Declining 281 < Unchanged 1 Index stats: < 1-yr return 25.5% < P/E 30.8x < Dividend yield 1.6% 250 750 1,250 1,750 2,250 2,200 2,450 2,700 2,950 3,200 3,450 3,700 3,950 4,200
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International equities
< European equities, as measured by the Stoxx Europe 600 Index, ended the day lower as rising U.S. bond yields continued to weigh on investor sentiment.
< Sixteen of the index’s twenty sectors ended the day lower, with the Travel & Leisure sector finishing the session down ~3.9%.
In corporate news:
AstraZeneca Plc (AZN)
< According to Reuters, a preliminary study conducted by AstraZeneca and the University of Oxford has indicated that the Covid-19 vaccine developed by the company has shown to be effective in protecting against the Brazilian variant of the virus. The initial data shows that no modifications are needed for the vaccine to be effective, however, people familiar with the matter did not provide the exact efficacy. Brazil is currently confronting a long-lasting second wave, heavily impacted by the new variant. The full study results are expected to be released sometime in March. AZN shares are trading higher at midday.
Stoxx Europe 600 biggest movers
Last price %∆
Aker Bp Asa 252.70 8.4% 8.4%
Royal Unibrew A/S 661.60 5.2% 5.2%
Bt Group Plc 141.45 4.9% 4.9%
Standard Chartered Plc 499.30 4.6% 4.6%
Galp Energia Sgps Sa 10.46 4.6% 4.6%
London Stock Exchange Group Plc 8,124.00 -14.4% 14.4%
Carnival Plc 1,531.00 -11.6% 11.6%
Corbion Nv 43.50 -8.1% 8.1%
Thg Plc 653.50 -7.6% 7.6%
Sinch Ab 1,404.00 -6.3% 6.3%
Stoxx Europe 600 Index (Market Closed)
Level Pts Chg % Chg 409 -3.2 -0.8% Issues < Advancing 166 < Declining 428 < Unchanged 6 Index stats: < 1-yr return 7.3% < P/E 49.5x < Dividend yield 3.1% 0 2,000 4,000 6,000 8,000 250 300 350 400 450
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