While U.S. stock markets were closed for Thanksgiving, the S&P/TSX composite index ended the day 2.70 points higher at 20,116.66.
November has seen a “significant recovery” in U.S. and Canadian markets from October, according to Brianne Gardner, senior wealth manager at Raymond James Ltd.’s Velocity Investment Partners.
“Our goal is to maintain this momentum until the end of the year,” she stated.
Gardner continued, “This past week has been really tech, kind of confirming its dominance still.”
She pointed out that energy equities have been following the decline in oil, which persisted on Thursday.
Retailers are getting ready for Cyber Monday and Black Friday, two highly anticipated sales weekends that help many businesses grow. However, if third-quarter profits are any indication, businesses hoping to see an improvement in their bottom line may be disappointed.
Gardner said that a number of merchants that reported results for the most recent quarter exceeded forecasts, but they then reduced them for the next months due to consumer spending beginning to decline in light of the growing expense of living.
“They may be exceeding earnings estimates, but they are announcing rough travels ahead because they anticipate a drop in sales,” the spokesperson stated.
For instance, Walmart stated last week that although third-quarter sales were greater than anticipated, consumers cut down on purchases in late October.
Consumers will continue to spend, but discretionary spending will be the first to go in a slowing economy weighted down by rising interest rates and still suffering from a severe case of inflation, according to Gardner.
She remarked, “I think people are cutting back this holiday.”
Although I believe that people are changing their spending habits, they still prefer to spend money on travel and experiences rather than maybe shopping for goods and services in general. In light of this, I believe that a slowdown in retail is anticipated, even as the holiday season draws near.
On Wednesday, the value of the Canadian dollar was valued at 73.00 cents US, down from 72.87 cents US.
The January natural gas contract increased three cents to US$3.07 per mmBTU, while the January oil price decreased 75 cents to US$76.35 a barrel.
December copper was up one cent at US$3.77 a pound, while December gold was up fifty cents at US$1,993.30 an ounce.