1.
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Overseas/Overnight Markets
U.S. stock index futures fell, taking a cue from European and Asian
markets, as worries over global growth prospects and the outcome of
Greece’s private-sector bond swap later this week weigh on sentiment.
There is no U.S. economic data on the docket today.
European stocks dropped, with banks and resource stocks among the
`largest detractors. A report released this morning showed a 0.3% Q/Q
contraction in the euro-area economy in Q4, confirming an initial estimate
published on February 15. Large declines in investment, exports and
consumer spending were to blame for the overall GDP contraction. Also
weighing on investors was a memo from the Institute of International
Finance that warned that a disorderly default would cause the euro zone
more than 1 trillion euros ($1.36 trillion) in damage, Reuters reported. The
report also stated that a default would likely force Italy and Spain to seek
aid to prevent being engulfed in the region’s debt crisis.
Private investors that have declared their participation in Greece’s debt
restructuring hold about 20% of the bonds involved in a swap, the creditors’
stering committee said yesterday. The goal of the swap, which runs
through March 8, is to reduce the amount of privately-held Greek debt by
53.5% and help secure Greece’s second rescue package.
Asian stocks fell sharply, with miners among the top declines, following
global markets lower on growth concerns. The Hang Seng shed 2.2%,
while the Shanghai Composite fell 1.4%. Japan’s Nikkei gave up a more
modest 0.6%.
North American Market Highlights & Headlines
Aecon Group Inc. (ARE-T) reported a 143% increase in quarterly earnings
on Monday as margins improved on lower costs. Aecon reported EPS of
$0.49, up from $0.20 a year ago. Revenue in the quarter was $790 million,
down from $841 million, and well shy of the $859 million consensus
estimate. Aecon's backlog stood at $2.39 billion at December 31, 2011.
Futures Market
Market Chg Last % Chg
S&P 500 -3 2,365 (0.13)
NASDAQ 0 5,347 (0.00)
Dow Jones -10 20,803 (0.05)
Daily Market Summary
Market Chg Last % Chg Ytd Chg
S&P/TSX -70 15,464 (0.45) 1.15
Venture -9 827 (1.08) 8.51
Dow Jones 16 20,837 0.08 5.44
S&P 500 2 2,370 0.10 5.85
NASDAQ 17 5,862 0.28 8.89
Global Markets
Market Chg Last % Chg Ytd Chg
DAX -20 11,802 (0.17) 2.73
FTSE 0 7,253 - 1.54
Stoxx 600 0 369 (0.03) 2.17
Nikkei 12 19,119 0.06 0.02
Hang Seng -184 23,741 (0.77) 7.91
Commodities
Chg Last % Chg Ytd Chg
Gold $2.05 $1,254.82 0.16 8.90
Oil -$0.35 $53.70 (0.65) (3.12)
Natural Gas -$0.02 $2.68 (0.64) (28.14)
F/X Rates
CDN$ Buys US$ Buys
US$ 0.7577 CDN$ 1.3198
Yen 84.93 Yen 112.09
Euro 0.7147 Euro 0.9433
Bond Yields
Market Chg Last % Chg Ytd Chg
CAN 3-MO 0.01 0.48 2.13 4.35
CAN 10-YR -0.02 1.63 (1.21) (5.46)
U.S. 3-MO 0.01 0.51 1.01 2.05
U.S. 10-YR 0.00 2.36 (0.08) (3.32)
All charts and data are sourced from
Bloomberg Finance L.P.
This publication is for distribution to Canadian
clients only.
Please refer to Appendix A of this report for
important disclosure information.
Overseas and Overnight Markets
U.S. stock index futures are pointing to a lower opening with all eyes on the upcoming
speech by President Donald Trump. At 9 a.m. ET the President will address the
Congress in a speech that markets will be watching for policy specifics. On the data
front, a second estimate for fourth-quarter gross domestic product came out at 1.9% in
line with the first estimate.
Asian markets were mixed on Tuesday in a light trading session as investors await a key
speech from President Donald Trump. In Hong Kong, the Hang Seng Index fell for a
fourth day, leading the losses in the region and closing 0.8% lower. The Japanese Nikkei
Index rose 0.1% retracing gains seen in early trade, while in China, the Shanghai
Composite Index edged 0.4% higher.
European stocks are hovering around the flat line mainly supported by retails stocks. In
terms of data, the latest French inflation figures showed a small decrease to 1.2% on the
year in February after reaching 1.3% in the previous month.
Company Headlines
Valeant Pharmaceuticals International Inc (VRX-T) posted a higher-than-expected
quarterly profit, aided by lower costs and strength in its Bausch and Lomb eyecare
business. Net loss attributable to Valeant widened to US$515 million, or US$1.47 per
share in the fourth quarter ended Dec. 31, from US$385 million, or US$1.12 per share, a
year earlier. Excluding items, it earned US$1.26 per share, beating analysts' average
estimate of US$1.19. Selling, general and administrative costs declined 10.5% to
US$665 million. Revenue fell 12.9% to US$2.40 billion, but exceeded the average
expectation of US$2.33 billion.
Bank of Montreal (BMO-T) reported better-than-expected quarterly earnings and
announced plans to buy back 15 million of its shares. Net income for the first quarter
ended on Jan. 31 rose to $1.49 billion, or $2.22 per share, from $1.07 billion, or $1.58
per share, a year earlier. Excluding one-off items, earnings were $2.28 per share.
Analysts had on average expected $1.88. BMO said net income from its Canadian
personal and commercial business increased by 40% to $743 million, benefiting from a
$168 million gain on the sale of its Moneris US business. The capital markets business
reported net income of $376 million, up 46% from a year earlier.
Bank of Nova Scotia (BNS-T) reported first-quarter earnings that appeared to be just
ahead of market expectations benefiting from a strong performance in the Pacific
Alliance trade bloc. Scotiabank said net income in the first quarter to Jan.31 was $2
billion compared with $1.8 billion the year before. Earnings per share rose to $1.58 from
$1.44 the year before. Analysts had on average forecast earnings per share of $1.57.
Sources: Marketwatch, Bloomberg, The Canadian Press, WSJ, Globe and Mail, Financial Post,
NYT, FactSet,Thomson Reuters, StreetAccount, CNBC, RTT News)
February 28, 2017
2. Before the Open February 28, 2017
Page 2
Canadian Equities Upgrades - March 6
Weekly Canada Economic Calendar - February 27 to March 03, 2017
Date/Time Event Period Consensus Actual Prior
02/27/2017 10:00 Bloomberg Nanos Confidence 24-Feb -- 58.1 57.7
02/28/2017 08:30 Industrial Product Price MoM Jan 0.50% 0.40% 0.40%
02/28/2017 08:30 Raw Materials Price Index MoM Jan 1.20% 1.70% 6.50%
03/01/2017 07:00 MLI Leading Indicator MoM Jan -- -- 0.60%
03/01/2017 08:30 Current Account Balance 4Q -$9.75b -- -$18.30b
03/01/2017 09:30 Markit Canada Manufacturing PMI Feb -- -- 53.5
03/01/2017 10:00 Bank of Canada Rate Decision 1-Mar 0.50% -- 0.50%
03/02/2017 08:30 GDP MoM Dec 0.30% -- 0.40%
03/02/2017 08:30 GDP YoY Dec 1.70% -- 1.60%
03/02/2017 08:30 Quarterly GDP Annualized 4Q 2.00% -- 3.50%
S&P/TSX Daily Performance
12000
12500
13000
13500
14000
14500
15000
15500
16000
Feb-16 Apr-16 Jun-16 Aug-16 Oct-16 Dec-16 Feb-17
Leaders - Prior Session
Company Ticker % Change
Sierra Wireless Inc SW-T 6.83
Enbridge Inc ENB-T 3.97
Valeant Pharmaceuticals International IncVRX-T 3.49
Cameco Corp CCO-T 2.92
PrairieSky Royalty Ltd PSK-T 2.54
Laggards - Prior Session
Company Ticker % Change
Alacer Gold Corp ASR-T -12.63
Fortuna Silver Mines Inc FVI-T -10.86
Kirkland Lake Gold Ltd KL-T -10.47
Endeavour Mining Corp EDV-T -9.49
Asanko Gold Inc AKG-T -9.49
Canadian Equity Upgrades
N/A
Canadian Equity Downgrades
N/A
Today's Earnings – Canada
Laurentian Bank of Canada $1.43, Bank of Nova Scotia/The $1.57, Bank of Montreal
$1.87, Pengrowth Energy Corp -$0.01, Veresen Inc $0.09, Novadaq Technologies Inc
-$0.17, First National Financial Corp $0.72, Kinaxis Inc $0.19, Avigilon Corp $0.19,
DREAM Unlimited Corp $0.14, Sleep Country Canada Holdings Inc $0.29,
Timbercreek Financial Corp $0.18, Integra Gold Corp $0.00, Africa Oil Corp -$0.03,
Questerre Energy Corp -$0.10
3. Before the Open February 28, 2017
Page 3
Weekly U.S. Economic Calendar - February 27 to March 03, 2017
Date/Time Event Period Consensus Actual Prior
02/27/2017 08:30 Durable Goods Orders Jan P 1.60% 1.80% -0.80%
02/27/2017 08:30 Durables Ex Transportation Jan P 0.50% -0.20% 0.90%
02/27/2017 08:30 Cap Goods Orders Nondef Ex Air Jan P 0.50% -0.40% 1.10%
02/27/2017 08:30 Cap Goods Ship Nondef Ex Air Jan P 0.20% -0.60% 1.60%
02/27/2017 10:00 Pending Home Sales MoM Jan 0.60% -2.80% 0.80%
02/27/2017 10:30 Dallas Fed Manf. Activity Feb 19.4 24.5 22.1
02/28/2017 08:30 GDP Annualized QoQ 4Q S 2.10% 1.90% 1.90%
02/28/2017 08:30 Personal Consumption 4Q S 2.60% 3.00% 2.50%
02/28/2017 08:30 GDP Price Index 4Q S 2.10% 2.00% 2.10%
02/28/2017 08:30 Core PCE QoQ 4Q S 1.30% 1.20% 1.30%
02/28/2017 08:30 Wholesale Inventories MoM Jan P 0.50% -0.10% 1.00%
02/28/2017 08:30 Retail Inventories MoM Jan -- 0.80% 0.00%
02/28/2017 09:00 S&P CoreLogic CS 20-City MoM SA Dec 0.70% -- 0.88%
02/28/2017 09:00 S&P CoreLogic CS 20-City YoY NSA Dec 5.35% -- 5.27%
02/28/2017 09:00 S&P CoreLogic CS 20-City NSA Index Dec -- -- 192.14
02/28/2017 09:45 Chicago Purchasing Manager Feb 53.5 -- 50.3
02/28/2017 10:00 Conf. Board Consumer Confidence Feb 111 -- 111.8
02/28/2017 10:00 Richmond Fed Manufact. Index Feb 10 -- 12
03/01/2017 07:00 MBA Mortgage Applications 24-Feb -- -- -2.00%
03/01/2017 08:30 Personal Income Jan 0.30% -- 0.30%
03/01/2017 08:30 Personal Spending Jan 0.30% -- 0.50%
03/01/2017 08:30 Real Personal Spending Jan -0.10% -- 0.30%
03/01/2017 08:30 PCE Deflator MoM Jan 0.50% -- 0.20%
03/01/2017 08:30 PCE Deflator YoY Jan 2.00% -- 1.60%
03/01/2017 08:30 PCE Core MoM Jan 0.30% -- 0.10%
03/01/2017 08:30 PCE Core YoY Jan 1.70% -- 1.70%
03/01/2017 09:45 Markit US Manufacturing PMI Feb F 54.5 -- 54.3
03/01/2017 10:00 ISM Manufacturing Feb 56.1 -- 56
03/01/2017 10:00 ISM Prices Paid Feb 68 -- 69
03/01/2017 10:00 ISM New Orders Feb -- -- 60.4
03/01/2017 10:00 ISM Employment Feb -- -- 56.1
03/01/2017 10:00 Construction Spending MoM Jan 0.60% -- -0.20%
03/01/2017 Wards Total Vehicle Sales Feb 17.70m -- 17.48m
03/01/2017 Wards Domestic Vehicle Sales Feb 13.65m -- 13.60m
03/02/2017 08:30 Initial Jobless Claims 25-Feb 245k -- 244k
03/02/2017 08:30 Continuing Claims 18-Feb 2065k -- 2060k
03/02/2017 09:45 Bloomberg Consumer Comfort 26-Feb -- -- 48
03/03/2017 09:45 Markit US Services PMI Feb F 54 -- 53.9
03/03/2017 09:45 Markit US Composite PMI Feb F -- -- 54.3
03/03/2017 10:00 ISM Non-Manf. Composite Feb 56.5 -- 56.5
S&P 500 Daily Performance
1700
1800
1900
2000
2100
2200
2300
2400
Feb-16 Apr-16 Jun-16 Aug-16 Oct-16 Dec-16 Feb-17
Leaders - Prior Session
Company Ticker % Change
Illumina Inc ILMN-US 4.26
Southwestern Energy Co SWN-US 3.54
TEGNA Inc TGNA-US 3.47
Regeneron Pharmaceuticals IncREGN-US 3.34
National Oilwell Varco Inc NOV-US 3.29
Laggards - Prior Session
Company Ticker % Change
AES Corp/VA AES UN -6.62
Newmont Mining Corp NEM UN -5.85
NRG Energy Inc NRG UN -3.95
Mondelez International Inc MDLZ UW -3.55
Hanesbrands Inc HBI UN -3.41
U.S. Equity Upgrades
Tullow Upgraded to Outperform at BMO
Bunzl Upgraded to Buy at Canaccord
U.S. Equity Downgrades
Frontier Comms Corp Cut to Neutral at JPMorgan
Jabil Circuit Cut to Market Perform at Raymond James
Today's Earnings – U.S.
AutoZone Inc $8.19, Valeant Pharmaceuticals International Inc $1.21, 3D Systems
Corp $0.13, Medicines Co/The -$1.54, Nexstar Media Group Inc $1.45, NRG Energy
Inc -$0.25, Domino's Pizza Inc $1.44, Liberty Interactive Corp QVC Group $0.57,
SeaWorld Entertainment Inc -$0.11, Platform Specialty Products Corp $0.17, Target
Corp $1.51, Ross Stores Inc $0.75, Antero Midstream Partners LP $0.35,
salesforce.com Inc $0.25, Universal Health Services Inc $1.81, Sarepta Therapeutics
Inc -$1.32, Advisory Board Co/The $0.56, ACADIA Pharmaceuticals Inc -$0.65,
DexCom Inc -$0.10, Portola Pharmaceuticals Inc -$1.12, Halcon Resources Corp
$0.58, LogMeIn Inc $0.58, AMC Entertainment Holdings Inc $0.34, Ambarella Inc
$0.74, Antero Resources Corp $0.19, TESARO Inc -$1.95, Palo Alto Networks Inc
$0.62, Seritage Growth Properties $0.59, Envision Healthcare Corp $1.23, Middleby
Corp/The $1.27
4. Before the Open February 28, 2017
Page 4
Appendix A - Important Information
General Research Disclaimer
The statements and statistics contained herein are based on material believed to be reliable, but are not guaranteed to be accurate or
complete. This report is for informational purposes only and is not an offer or solicitation with respect to the purchase or sale of any
investment fund, security or other product. Particular investment, trading, or tax strategies should be evaluated relative to each individual’s
objectives. Graphs and charts are used for illustrative purposes only and do not reflect future values or future performance. This document
does not provide individual financial, legal, investment or tax advice. Please consult your own legal, investment and tax advisor. All
opinions and other information in this document are subject to change without notice. The Toronto-Dominion Bank and its affiliates and
related entities are not liable for any errors or omissions in the information or for any loss or damage suffered.
TD Waterhouse Canada Inc. and/or its affiliated persons or companies may hold a position in the securities mentioned, including options,
futures and other derivative instruments thereon, and may, as principal or agent, buy or sell such securities. Affiliated persons or
companies may also make a market in and participate in an underwriting of such securities.
Full disclosures for all companies covered by TD Securities Inc. can be viewed at
https://www.tdsresearch.com/equities/welcome.important.disclosure.action
Research Ratings
Action List BUY: The stock’s total return is expected to exceed a minimum of 15%, on a risk-adjusted basis, over the next 12 months and
it is a top pick in the Analyst’s sector.
BUY: The stock’s total return is expected to exceed a minimum of 15%, on a risk-adjusted basis, over the next 12 months.
SPECULATIVE BUY: The stock’s total return is expected to exceed 30% over the next 12 months; however, there is material event risk
associated with the investment that could result in significant loss.
HOLD: The stock’s total return is expected to be between 0% and 15%, on a risk-adjusted basis, over the next 12 months.
TENDER: Investors are advised to tender their shares to a specific offer for the company’s securities.
REDUCE: The stock’s total return is expected to be negative over the next 12 months.
Technical Research Disclaimer
The opinions expressed herein reflect a technical perspective and may differ from fundamental research on these issuers. Fundamental
research can be obtained through your TD Wealth advisor or on the Markets and Research site within WebBroker.
The technical research opinions contained in this report are based on historical technical data and expectations of the most likely direction
of a market or security. No guarantee of that outcome is ever implied.
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securities or issuers discussed herein, and (ii) no part of the research analyst’s compensation was, is, or will be, directly or indirectly,
related to the provision of specific recommendations or views expressed by the research analyst in the research report.
Conflicts of Interest
The Portfolio Advice & Investment Research analyst(s) responsible for this report may own securities of the issuer(s) discussed in this
report. As with most other employees, the analyst(s) who prepared this report are compensated based upon (among other factors) the
5. Before the Open February 28, 2017
Page 5
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however TD Waterhouse Canada Inc. does not compensate its analysts based on specific investment banking transactions.
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