US EQUITIES
UnlockRatingIf copper stays at $5, they should produce $9 billion in free cash flow or 15% free cash flow yield.
UnlockRatingIt's run up 166% in 3 months, but he won't bet against it, because they control the ecosystem of the young. HOOD, Roblox and American Express, we love.
UnlockRatingHallelujah! It's taken way too long. It's our best asset in addition to water. Best part about getting gas to market is that these pipelines will open up Asia, and maybe even Europe. The last prime minister rejected us selling our gas, but this is what we do well. We have to support this. The revenues that come from it support it. Great time to be in the gas patch, and it's good for Canada.
This Week’s Stock Picks & BNN Top Picks Summary: MTZ-N, CRWD-Q and 22 Stock Top Picks (Jul 11-17)
This week were 22 Stock Top Picks in a wide range of industries: Industrials, Financials, Consumer, Technology, Healthcare, Basic Materials and Energy. Here are this week´s Top Picks as selected by: Michael O’Reilly, Billy Kawasaki, Greg Dean, Gordon Reid, Colin… read more
Earnings and data lift markets to new highs
Earnings from U.S. companies and positive economic data lifted the indices on both Wall and Bay streets to new highs Thursday. America’s latest weekly jobless claims decreased as June’s retail sales beat expectations. The S&P rallied 0.54% to 6,297 and the Nasdaq jumped 0.74% to 20,884, both record closes. Meanwhile, the Dow gained 0.52% to approach its own high.
Pepsi was among the companies reporting good earnings; it was rewarded with a 7.45% rally. Meanwhile, the Bank of America rose 2.15% as most of the U.S. banks reported positive results in recent days, Warner Bros. Discovery climbed 2.07%, Albemarle popped 7.57% though Elevance Health slid 12.22%. Bitcoin added US$1,250 to US$118,725 while the U.S. 10-year yield hovered around 4.453%.
In Canada, the TSX made yet another record close, advancing 0.88% or 239 points to 27,392. Outsized gains in tech, helped by discretionary and staples, led the rally as eight sectors rose. Alimentation Couche-Tard scrapped its mammoth 7-Eleven deal and saw its shares rebound 8.31%. Elsewhere, Shopify leapt 6.15%, Gildan 5.65%, Denison Mines 4.33% though Superior Plus sank 8.33%. Gold declined US$7 to US$3,339 while WTI increased US$1.20 to US$67.60.
🧃 PepsiCo (PEP-Q) +7.45%
🏛 Bank of America (BAC-N) +2.15%
📺 Warner Bros. Discovery (WBD-Q) +2.07%
⛏ Albemarle Corp (ALB-N) +7.57%
👨⚕️ Elevance Health Inc (ELV-N) -12.22%
🍱 Alimentation Couche-Tard (ATD-T) +8.31%
🛍 Shopify Inc. (SHOP-T) +6.15%
👕 Gildan Activewear Inc. (GIL-T) +5.65%
⛏ Denison Mines Corp (DML-T) +4.33%
🚚 Superior Plus Corp (SPB-T) -8.33%
UnlockRatingHe'd disagree. We've only just gone through a generational shift in interest rates. 2020 saw generational lows in rates, the last one being 1951. Long-term higher rate cycle is great for financials. The XLF (the financials ETF in the US) didn't make a new high from 2008-2022, and that started a new bull market.
Our Canadian banks dodged the 2008 bullet, and they're in good shape. Performing well, and he'd be in no hurry to sell.
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UnlockRatingOur PAST TOP PICK with ARDT has triggered its stop at $12.50. To remain disciplined, we recommend covering the position at this time.
UnlockRatingRumours of Trump about to fire Powell sent markets tumbling and interest rates rising. Then, Trump denied the firing, and market rallied. The market said that Trump is wrong about firing Powell. While Powell made mistakes in the pass, raising them in late 2018 and calling inflation transitory post-Covid, there's no reason for him to cut rates. Trump would be smart to leave Powell alone. Firing him would rock the stock market and raise long-term interest rates.
UnlockRatingTop Performers in June:
The best performer of June was Propel Holdings Inc (PRL) whose stock price was up 19.4% on the month, up 2.9% year-to-date, and up 48.5% over the past year.
PRL is an innovative fintech company operating through three main brands, MoneyKey and CreditFresh in the US, and Fora in Canada. It reported strong earnings in early May, which helped to improve its momentum, and since then, it has carried this positive momentum into June. The name was heavily sold off during the April Tariff turmoil decline, and since the market recovered, PRL has continued its climb higher. It trades at an 11X forward earnings, it has a 1.9% dividend yield, and with a strong growth profile, we feel this name can move higher in the coming year(s).
The second-best performer of June was Galaxy Digital Inc (GLXY), whose stock price was up 17.4% on the month, up 19.3% year-to-date, and up 74.7% over the past year.
It operates across a few main segments: global markets (trading, lending, derivatives), asset management (venture investing, passive ETFs, etc.), digital infrastructure (data centres for blockchain and AI). It has now completed its uplisting on the NASDAQ exchange, and in June, it closed its first external venture fund at more than $175 million. This fund aims to back early-stage blockchain and digital asset startups. The crypto market has been moving higher in general, and this has helped to improve its price action. Lastly, it has established a strong partnership with CRWV and this has helped to drive growth and diversify its operations.
The third best performer of June was Magellan Aerospace Corp (MAL) whose stock price was up 14.4% on the month, up 91.7% year-to-date, and up 140.9% over the past year.
MAL is a small ($1.0 billion market cap) aerospace name that pays a decent yield of 0.5%. It has a diversified customer base and long-term contracts, serving customers like Boeing, Airbus, and Lockheed Martin. In late May, TD Securities upgraded MAL and raised its price target, which helped its price action into June. It also announced a dividend increase and it gained momentum from the rising global military and defense-related spending. Given its forward expected earnings growth rates, its valuation of 17X forward earnings seems fairly attractive to us.
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Stocks rise after chaotic session
Wednesday’s session was wild after the White House indicated that Trump would fire Fed Chief, Jerome Powell, then Trump himself denied he would. Markets tanked initially then recovered, given how the markets would disapprove if Trump dismissed him. (Trump himself appointed Powell to lead the Fed in November 2017.) By the closing bell, the S&P had risen 0.32%, the Nasdaq 0.25% and the Dow 0.53%.
Major movers: Global Payments 6.51%, Johnson & Johnson 6.19%, Tesla 3.5%, Ford -2.85% and Vistra -2.85%. Bitcoin rallied 2.7% to US$119,600, thriving on the uncertainty, while the U.S. 10-year yield hovered around 4.455%.
The TSX advanced 0.37% or nearly 100 points to approach all-time highs. However, only four sectors were positive led by outsized gains in tech as well as financials. They offset losses in energy and materials. Key names on Bay Street included Denison Mines 8.63%, CNQ -1.49%, Cenovus -1.95%, Energy Fuels 6.21% and Novagold Resources 5.59%. In commodities, gold declined US$24 to US$3,348 while WTI rose 0.26% to US$66.70.
🏛 Global Payments Inc. (GPN-N) +6.51%
👨⚕️ Johnson & Johnson (JNJ-N) +6.19%
🚗 Tesla Inc (TSLA-Q) +3.5%
🚘 Ford Motor (F-N) -2.85%
💡 Vistra (VST-N) -2.85%
🅱 Bitcoin (BTCUSD) (CRYPTO:BTC) +2.7%
⛏ Denison Mines Corp (DML-T) +8.63%
🛢 Canadian Natural Rsrcs (CNQ-T) -1.49%
🛢 Cenovus Energy (CVE-T) -1.95%
⛏ Energy Fuels Inc. (EFR-T) +6.21%
🥇 NovaGold Resources Inc (NG-T) +5.59%
UnlockRatingThey're not Blackwell state-of-the-art, but the next best thing. A year ago, they were the cat's meow. It's why NVDA popped up another 4% yesterday. Gives more legs to the whole AI revolution going on out there, with China being such a large market.
He was surprised, but pleasantly, as he's pretty overweight in the AI ecosystem.
Stocks fade on inflation numbers
Tuesday markets welcomed the release of June’s inflation numbers with a partial sell-off. The S&P closed -0.4%, the Dow -0.98% though the Nasdaq managed to climb 0.18%. U.S. inflation in June was 2.7%, up from 2.4% the month before as many economists cited this as Trump’s tariffs starting to seep into American prices. The figures coincided with the start of earnings season.
Blackrock disappointed and was punished for 5.88%. Meanwhile, Nvidia made yet another record high after rallying 4.04%, Super Micro Computer jumped 6.92%, First Solar rose 6.9%, though Newmont tumbled 5.71%. Bitcoin retreated from record highs by US$3,800 to US$116,365. The U.S. 10-year edged up to 4.487%.
The TSX declined 0.53% or 144 points, but remained above 27,000. Only three sectors gained, led by utilities while staples, energy and tech lagged the most. Major movers: CNQ -1.38%, Richelieu Hardware -3.32%, Tamarack Valley -2.75%, Equinox Gold -2.55%, Energy Fuels 10.74% and Brookfield Renewable 6.27%. Gold gave back US$14 to US$3,329 while WTI declined 30 cents to US$66.66.
🏛 Blackrock Inc. (BLK-N) -5.88%
💾 NVIDIA Corporation (NVDA-Q) +4.04%
💾 Super Micro Computer (SMCI-Q) +6.925
⛏ First Solar Inc. (FSLR-Q) +6.09%
⛏ Newmont Mining (US) (NEM-N) -5.71%
🛢 Canadian Natural Rsrcs (CNQ-T) -1.38%
💾 Richelieu Hardware (RCH-T) -3.32%
🛢 Tamarack Valley Energy (TVE-T) -2.75%
🥇 Equinox Gold (EQX-T) -2.55%
⛏ Energy Fuels Inc. (EFR-T) +10.74%
💡 Brookfield Renewable Partners (BEP.UN-T) +6.27%
UnlockRatingThe US economy is in fairly good shape. Labour looks good, though there's lingering inflation with the tariff impact yet to hit. Longer term, he's construction. AI will be deflationary in the long run, and the tariffs will be temporary. Valuations: markets are fully valued, though could rise on organic growth or greater expectations of future growth. He expected volatility this year, though not as deep as last April. Last quarter, the market didn't hold CEOs' feet to the fire when they said that they don't know what's happening because of tariffs, so they pulled guidance; normally, that hurts stock prices, but not last quarter. This time, investors want to know guidance. Last quarter was good, and he hopes this will be.
Premium contentUnlockRatingOur PAST TOP PICK with BBAR has triggered its stop at $15. To remain disciplined we recommend covering the position at this time.