Exchange: Wall Street is betting on a victory for Clinton, TransForce summit

Business 8 November, 2016

wallWall Street jumped Monday news revealing himself more favorable to Hillary Clinton on the eve of a presidential election for which investors largely prefer the Democratic candidate.

The benchmark S & P 500 recovered in one session 72% of losses incurred during the previous nine sessions, a black series ever since 1980.

In Toronto, the index S & P / TSX Composite Index gained 143 points or 0.99% to 14,652 points.

In New York, the S & P 500 has risen 46 points, or 2.22%, to 2 131 points, its best session in nine months.

The Dow Jones rose 371 points or 2.08% to 18,259 points.

The Nasdaq was up 119 points, or 2.37%, to 5166 points.

The MSCI All-Country rebounded 1.26%, its best session since June 29 On 4 November, the index reached a four-month floor.

In Toronto, the information technology sector posted the largest increase, 3.6%. The materials sector is the only one in the red, with a decline of 2.26%.

Among the titles in action, Air Canada (Tor., CA) announced a profit increase of 12% in the third quarter of 2016, thanks to an increase in passenger numbers and a reduction in fuel costs. Adjusted earnings amounted to $ 821M, or $ 2.93 per share, compared to $ 734m or $ 2.50 per share in the same period last year. Analysts on average expected a profit of $ 2.55 per share, according to Thomson Reuters. The stock has gained 7.45%.

The title of the carrier TransForce (Tor., TFI) receives an annual summit to $ 31.22. Conversely, the share of retailer Sears Canada (Tor., CSC) touched a low of $ 2.45.

Paul Treiber, RBC Capital Markets, published its forecast for the fourth quarter for the CGI Group (Tor., GIB). CGI unveil 9 November a profit of $ 0.92 per share, up 12% from last year, provides for the RBC analyst. On average, analysts who follow CGI provide a profit of $ 0.90 per share. The stock rose 1.33%.

Benoit Poirier of Desjardins Capital Markets reiterated its outperform recommendation and a target of $ 19 for the title of Héroux-Devtek (Tor, HRX), after the latter had reported another quarter without history. Adjusted earnings per share of $ 0.16, slightly lower than the $ 0.17 expected by analysts. Sales, they have declined by 3.1% compared to last year. But the analyst remains optimistic about the prospects for improvement of revenues and margins of society in Longueuil. The stock rose 0.14%.

Anthony Zicha, Scotia Bank, raised its profit forecast for the years 2016 and 2017 Dorel (Tor., DII.B), after the slightly better than expected results released by the Montreal company in the third quarter. For 2016, it now expects a profit of $ 2.28 per share rather than $ 2.20 per share, and for 2017, $ 2.75 rather than $ 2.70 share. Mr. Zicha increased its target from $ 35 to $ 36 for the title, but maintains its recommendation performance sector. The stock advanced 1.55 ‘%.

South of the border, the online travel specialist Priceline (Nasdaq PCLN) reports its results, as well as the hotel chain Marriott (NY., MAR).

The market focused on the presidential election

“It looks like investors are relieved (…) and now believe that Hillary Clinton will win tomorrow,” summarized Jack Ablin, BMO Private Bank.

All world markets surged Monday after the announcement by the FBI that he did not pursue Clinton after employment by the Democrat a private messaging when she was Secretary of State, whereas the reopening late October of this investigation contributed to nearly two weeks of depression.

On Wall Street and other major exchanges, minds are dominated by the US presidential election on Tuesday and investors appear largely acquired Clinton against his Republican opponent, Donald Trump, perceived as more unpredictable.

“What is most likely to have a positive effect on the markets is that Clinton wins and Republicans retain control of the chamber (bass) representatives,” wrote experts Berenberg, noting that it was the most likely outcome to believe the major polls.

Investors fear that a too strong domination of Democrats allow the implementation of a program deemed too severe in regulation for sectors like pharmaceutical companies in particular.

“In any case, there would be no wonder that the instability persists stock market until we know the results tomorrow, and even the rest of the week,” said David Levy of Republic Wealth Advisors.

alphabet rises

Among the values, the food distributor Sysco took 9.83% to 52.76 dollars after announcing an increase in sales and its quarterly net profit.

Chemours chemist born from a split of giant DuPont (+ 1.31% to 69.51 dollars), jumped 12.75% to 19.28 dollars after announcing well results exceeded expectations, including the Join a quarterly net profit instead of a loss as to the same period of the previous year.

First Data , a specialist in payment systems, gained 9.30% to 14.46 dollars after bringing in the green accounts in the last quarter with a slight increase in turnover.

The IT group Oracle took 2.12% to 39.09 dollars after announcing the completion of the purchase for $ 9.3 billion of NetSuite, a cloud services specialist online ( “cloud”), whose title remained suspended at 90.34 dollars.

Alphabet , parent company Google , was up 2.68% to 802.03 dollars, after one of its subsidiaries has revealed hold an interest in mobile messaging Snapchat currently not publicly traded.

The biopharmaceutical company Biogen and Ionis respectively surged 6.72% to 295.62 dollars and 18.39% to 32.12 dollars after announcing the success of clinical trials of a joint project of treatment of neuromuscular disease in children.

The bond market retreated. By late afternoon, the yield on 10-year Treasury rose to 1.824% against 1.778% Friday night, and that good for 30 years at 2.602% against 2.563% previously.