More record highs as T-Mobile deal approved
At the morning bell Tuesday, the TSX, Nasdaq and S&P made record highs and hung on despite levels fading throughout the day. Tuesday was essentially an extension of Monday with investors feeling optimistic that the coronavirus is being contained, though companies like Under Armour warned that the the plunge in Chinese demand will hurt their future earnings.
This (blind?) optimism helped lift a barrel of light crude oil by nearly 1%, though oil has entered bear territory with Chinese demand plunging 20%. Despite a downgrade based on virus fears, Canada Goose soared 4.5% on an earnings beat. Overall, materials and utilities led the TSX up.
South of the border Tuesday was driven by headlines. U.S. courts approved T-Mobile‘s US$26 billion takeover of Sprint. Those stocks soared 11.78% and an astonishing 77.5% respectively. The decision shakes up the American telecom space on the eve of the 5G roll-out. Meanwhile, in fairly predictable questioning of the U.S. Fed Chair, Jerome Powell admitted that he was concerned about the economic effects of the coronavirus, but admitted that every central bank in the world is taking a hard look at digital currencies and that Facebook‘s Libra was a “wake-up call.” Bitcoin rose 4% Tuesday.