Category: Investing

Seems there’s no stopping stocks — S&P, Dow hit three-month high on economic optimism

The S&P 500 and the Dow Jones indexes hit new three-month highs on Tuesday on prevailing optimism around the reopening of businesses, with investors remaining cautious around more disruptions from protests in the country over the death of a black man while in police custody.

Some of the worst-hit stocks in the travel sector, including American Airlines Group Inc, United Airlines, Norwegian Cruise Line and Carnival Corp, rose between 1.5 per cent and 2.7 per cent.

Improving economic data, trillions of dollars in stimulus and the restarting of businesses have helped the S&P 500 climb about 38 per cent from its March lows, leaving it only about 11 per cent below its Feb. 19 record high.

But investors are keeping a close eye on Sino-U.S. tensions and anti-police brutality marches and rallies that have often turned violent in many cities.

Demonstrators set fire to a strip mall in Los Angeles,

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‘Glass half full’ outlook pushes S&P 500 over 3,000

U.S. stocks rose for a third day as optimism mounts that the global economy is on the rebound from the pandemic hit. Treasuries slipped.

The S&P 500 jumped back above 3,000 and its average price for the past 200 days, technical levels considered key by chart watchers.

The S&P/TSX composite index was up 13.37 points at 15,161.49.

In New York, the Dow Jones industrial average was up 345.12 points at 25,340.23. The S&P 500 index was up 22.12 points at 3,013.89, while the Nasdaq composite was down 26.69 points at 9,313.53.

For a second day, stocks most punished by the coronavirus, from Carnival Corp. to United Airlines, surged as investors anticipate a sharp uptick in spending on non-essential goods and services. The tech-heavy Nasdaq 100 Index retreated as investors shunned the high flyers that dragged equities off their lows throughout April and much of May. Rising tensions with China also

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Strategists lower their sights for TSX, but current rally ‘has legs’

TORONTO — Canada’s main stock index is set to extend its rebound over the coming months as well as in 2021, but will fall short of previous expectations as the global economy struggles to fully recover from the coronavirus crisis, a Reuters poll found.

The commodity-linked S&P/TSX Composite index has rallied about 35 per cent since plunging in March to a more than eight-year low, supported by steps to reopen the world economy and a rally in oil prices after U.S. crude hit a record low.

The median forecast in a survey of 25 portfolio managers and strategists was for the TSX to rise 2.9 per cent to 15,590 by the end of 2020 from a closing level of 15,148.12 on Tuesday. In February, when the index notched a record high at 17,970.51, the forecast was 18,175.

The TSX is then expected to climb further to 17,000 by the end

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Five blockbuster deals that would inject some excitement into markets during quarantine

My kids are trapped in quarantine, and they are passing the time in part by suggesting some investment column ideas for me. Hopefully the world returns to normal soon and you won’t be subject to the (not so bad, actually) investment thoughts of two teenage boys.

This week, instead, we are going to put on our dealmaker hats and propose some ideas for bored investment bankers to consider. Times are tough all over, but there is nothing like hefty broker fees to get Bay and Wall Street’s blood racing. Here are some deal propositions that could work:

Netflix should buy Spotify

Netflix (NFLX on Nasdaq) is facing lots of competition in the streaming business. Sure, COVID-19 has helped recent growth, with everyone stuck at home, but this won’t last forever. What better way to tie up your customers than to offer viewing options and music. Spotify (SPOT on Nasdaq) has

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With a US$560-billion war chest, Big Tech goes on pandemic M&A spree despite political backlash

Big technology companies are hunting for deals at their fastest pace in years, racking up acquisitions and strategic investments despite increased regulatory scrutiny during the coronavirus-led market turmoil.

Alphabet Inc., Amazon.com Inc., Apple Inc., Facebook Inc. and Microsoft Corp. have announced 19 deals this year, according to Refinitiv data from May 26, representing the fastest pace of acquisitions to this date since 2015.

The Financial Times on Tuesday reported Amazon was also in advanced talks to purchase the self-driving car company Zoox, which was valued at US$3.2 billion two years ago. Meanwhile, Facebook in March announced its largest international investment yet, purchasing a US$5.7 billion stake in the juggernaut Indian telecoms operator Reliance Jio.

The deals mark a departure from the 2001 recession and the 2008 financial crisis, when tech companies largely retreated from big purchases following dips in the stock market.

“One big difference between now and the last

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