Daily Market Commentary
- The participation rate in Canada in July was reported at 65.9%, below estimates of 66.1%.
- The unemployment rate in Canada was reported at 7%, below estimates of 7.1%.
- Nonfarm productivity in the U.S. for the second quarter was reportedly up 2.5%, above estimates of 1.5%.
- Crude oil rose as U.S. President Barack Obama authorized airstrikes in parts of Iraq, OPEC’s second-largest producer, while Chevron Corp. said it was withdrawing some workers.
- Gold advanced to a three-week high as unrest in the Middle East spurred demand for a haven.
- Copper headed for a second weekly decline after imports by China, the biggest user of the metal, fell to the lowest since April 2013.
- Magna International Inc. says it made $510-million in net income during the second quarter of the year, or $2.32 per diluted share. That compares to net income of $415-million, or $1.78 per diluted share, in the same period a year ago. Magna, based in Aurora, Ont., also reports it posted record sales of $9.46-billion in the quarter – an increase of 6 per cent over the same period last year. (Globe)
- Lululemon Athletica Inc. founder Chip Wilson agreed to sell half his stake in the yogawear retailer to Advent International Corp. for $845 million and forgo pursuing a buyout for at least a year, ending a fight with the board.
- Canada’s dollar declined after a report showed the nation’s employers added fewer jobs in July than forecast, adding to concern the economy is faltering.
- U.S. stock-index futures fell, indicating equities will drop for a second day, as President Barack Obama approved airstrikes in Iraq, and rocket attacks marked the end of a cease-fire between Israel and Hamas.
- CBS Corp., owner of the most-watched U.S. television network, reported second-quarter profit that topped analysts’ estimates, boosted by share repurchases. The company doubled its buyback and raised the dividend.
- McDonald’s Corp., the world’s biggest restaurant chain, said sales at stores open at least 13 months fell 2.5% in July as the U.S. slumped for the third straight month and a food scare in Asia hurt results.
- European stocks dropped a third day, with the German benchmark gauge sliding more than 10 percent from its high, as President Barack Obama said he would allow U.S. air strikes against militants in Iraq.
- Allianz SE, Europe’s biggest insurer, said second-quarter profit rose 11 percent, helped by higher earnings at the life and health insurance unit and lower natural disaster claims.
- The ECB will use a traffic-light system to check the results produced by banks in its stress test and will send back calculations that don’t follow the right procedure.
- Asian stocks dropped, with the regional benchmark index heading for a seven-week low, as U.S. President Barack Obama authorized air strikes in Iraq.
- China’s trade surplus surged to a record in July as export growth unexpectedly accelerated and imports fell, suggesting the U.S. and European recoveries will help sustain expansion in the world’s second-largest economy.
- Malaysian Airline System Bhd. will be delisted after sovereign wealth fund Khazanah Nasional Bhd. offered to buy out minority shareholders in a restructuring plan for the national carrier that suffered two disasters this year.
- SoftBAnk Corp., the Japanese wireless carrier led by Masayoshi Son, posted a 68% drop in first-quarter profit after booking an accounting charge from its stake in Alibaba Group Holding Ltd. and as subscriber growth slowed.
*All information is taken from Bloomberg, unless otherwise noted.