The TSX has gained a healthy 250 pts over the past couple of weeks. Banks have been leading the way as the end of interest rate hikes coupled with impressive earnings reports from BMO and TD have caused the sector to rise by roughly 6% in the last ten trading sessions. TD reported a 94% increase in third-quarter profit this morning, and boosted its dividend by 9%. US new home sales dropped 4.3% last month, almost double the decline analysts had expected. Durable goods orders in the US also declined last month, although the ex-transportation figures held up quite well. The TSX is down 24 pts this morning. The Dow is flat.
Bonds have been grinding higher in the face of sluggish economic news, pushing the 5-year Canada yield down to 4.10% and the 10-year to 4.20% (the 10-year yielded 4.33% two weeks ago). The Loonie has strengthened over the period, and is flat this morning at US$.9002. Oil is off 11 cents this morning to US.65/barrel. Gold is down 50 cents to US2.50/oz.
