Toronto flat, but New York indices shine with Tiffany
While the TSX closed flat on Monday, New York indices were way up, with the S&P cracking a new intra-day high at the opening bell and the Nasdaq closing 1.01% higher. American investors were feeling confident after Trump told reporters that US-China trade negotiations were “ahead of schedule,” though he offered no details or timeline. Regardless, Microsoft jumped 2.46% after weekend news that it had beaten Amazon to win a $10 billion cloud contract from the U.S. Army.
But the deal isn’t a slam dunk for Microsoft. Amazon cited interference from Trump, well-known for his feud with Amazon CEO Jeff Bezos, and from Microsoft’s own employees, unhappy that their company was now enhancing the “lethality” of U.S. defense. More triumphant was Tiffany after French luxury goods company, LVMH (which owns Louis Vuitton) offered to buy the famous New York jeweler. Their offer was $120, or 20% higher than Friday’s closing price. Tiffany skyrocketed 31.63% on Monday, though LVMH closed down slightly by 0.33%.
In Toronto, QSR was down 3.65% after a disappointing earnings report. Popeyes’ same-store growth was up, and Burger King’s meatless Whopper pushed same-store sales growth, but yet again, Tim Horton’s dragged the fast-food stock down with weak performance.