The Stock Market At Close – Monday November 21
TSX fell on Monday, tracking crude oil prices. TSX was down marginally by 3.78 points to close at 19,977.13
Global markets tumbled after China’s capital warned that it was facing its most severe test of the COVID-19 pandemic, shutting businesses and schools in hard-hit districts and tightening rules for entering the city.
The big news today at the Toronto market was about Home Capital Group Inc. The share price soared 56.9% after the mortgage lender said it would be acquired by Smith Financial Corp. Home Capital has been depressed since an independent investigation in 2015 found that certain brokerages that the firm had contracts with had falsified information about borrowers’ incomes.
The US Market – Wall Street’s main indexes ended Monday roughly down on fears that China could resume stricter measures to fight COVID-19 after it said it faces its most severe test of the pandemic. There is this fear that China might reinstitute some of the COVID restrictions that they’ve just purportedly started to lift as Beijing said on Monday that it would shut businesses and schools in hard-hit districts and tighten rules for entering the city, as infections ticked higher, spooking investors. Zero COVID tolerance does not often go well with the market.
The S&P 500 shed 0.4% while the Nasdaq closed 1.1% lower. The Dow Jones Industrial Average lost 0.1%. The Russell 2000 small-cap index trimmed 0.6%.
It would appear that the chances of a big rate (75 basis point) hike in December is less likely and a smaller rate hike (possibly 50 basis points) more likely as two as the San Francisco Federal Reserve President Mary Daly and Cleveland Fed President Loretta Mester appear to be thinking along the lines of smaller rate hike and the call for a smaller rate hike in December in order to avoid a “painful downturn.”
10-year Treasury Yield today:
Open: 3.788%; Day High: 3.833%; Day Low: 3.745%; Prev. Close3.773% Current: 3.82%
Stock In the News:
Walt Disney (DIS) was up today a respectable 6.3% on a volume of 70M. A former Chairman and Chief executive, Bob Iger is now returning as the new chief executive.
Morgan Stanley upgrades Restaurant Brands International (QSR) to Equal weight from Underweight with a target price of $71 from $56. Restaurant Brands International (QSR) has an average rating of outperform and price targets ranging from $58 to $75, according to analysts polled by Capital IQ.
Truly Buyer Beware: Bitcoin dropped near $15,600 from its low-$21,000s level in early November following FTX’s bankruptcy. Follow smart money stand clear of Cryptos!
Nucor Corporation (NYSE: NUE) announced today it is joining the United Nations 24/7 Carbon-Free Energy Global Compact (“Compact”). Nucor is the first major industrial company to join this global effort, which is aimed at accelerating the decarbonization of the world’s electricity systems to mitigate climate change and ensure access to clean and affordable electricity.
“For more than five decades, Nucor has been built on the sustainable model of producing steel with a low carbon footprint by recycling scrap metal into new steel and steel products. As the first major industrial company in the world to join the compact, we will build on this legacy by taking a leadership role in the world’s transition to 24/7 clean energy,” said Leon Topalian, Nucor’s Chair, President, and Chief Executive Officer. “In order for us to achieve a carbon-free energy future while also meeting the growing demand for energy, it is critical that we embrace all forms of clean, zero-carbon energy sources, from wind, solar and hydro, to nuclear power.”
To further its commitment, Nucor is working with its electricity suppliers to access 24/7 clean energy at the company’s steel mills. It is actively investing in a number of innovative projects that it believes will accelerate the transition to 24/7 clean energy. For example, in April 2022, Nucor announced a strategic investment in NuScale Power Corporation (NYSE: SMR), a developer of small modular reactor nuclear plants. Nucor believes this technology presents an incredible opportunity to develop a safe, modern, zero-carbon nuclear energy future.
Nucor Corp was up 4.94% today with a volume of 2.6M shares traded.
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