Feb 20, 2018
BNN's Daily Chase: U.S. stock futures point to lower open; B.C. escalates trade spat with Alberta
By Noah Zivitz
The Dow and TSX enter the shortened trading week riding hot streaks. The DJIA has rallied almost 6 per cent amid a six-session winning streak since the freefall ground to a halt on Feb. 8. And the TSX has posted gains in three straight sessions heading into today. All that said, futures are pointing to a sour open in New York, with attention still squarely focused on the 10-year U.S. Treasury yield, which is sitting north of 2.9 per cent.
WALMART SNAGS MARKET SHARE IN CANADA
For all the bad price tied to an allegedly industry-wide bread price-fixing scandal in this country, Walmart isn’t emerging any worse for wear. The massive retailer says its fiscal fourth-quarter same-store sales rose 2.9 per cent in Canada, the most in almost two years. Sure, the company’s stock is under some pressure in pre-market trading. But on this side of the border, business appears to be booming. Jameson will sift through the details and we’ll chase reaction.
ANOTHER SALVO IN B.C.-ALBERTA FEUD
British Columbia is escalating its feud with Alberta, announcing yesterday afternoon it will challenge Rachel Notley’s ban on B.C. wine imports via the Canadian Free Trade Agreement’s dispute process. John Horgan’s government also announced April will be B.C. Wine Month, leading to a reasonable presumption B.C. isn’t going to back away from its threat to cap diluted bitumen shipments when it releases the overview of proposed regulations by the end of this month.
HERE COME THE BANKS
CIBC sets the bar for the Big Six on Thursday; in the meantime, we’ve got HSBC Canada setting the table with an 18 per cent drop in fourth-quarter profit; blame is being pinned on a 31 per cent plunge in trading income. We’ll consider whether we should expect more of the same when the big banks start reporting. Shares of HSBC Plc, meanwhile, have been down as much as 4.5 per cent in London after the bank fell short of estimates.
OTHER NOTABLE STORIES:
-Trinidad Drilling announced this morning it will launch a strategic review, which could include the sale of some assets or the entire company
-Bombardier is warning layoffs could be in the offing in Quebec after it lost out to Alstom to supply rail cars for the Caisse’s new $6.3-billion rail project in Montreal.
-BHP Billiton says it’s expecting bids to land for its U.S. shale business around mid-year; also reiterated in today’s mid-year results that its Jansen potash project in Saskatchewan will only go ahead if it meets internal capital allocation requirements.
NOTABLE RELEASES/EVENTS
Notable earnings: Walmart, Home Depot, BHP Billiton
Notable data: Canadian wholesale trade
4:30 p.m. ET: B.C. government delivers 2018 budget
Prime Minister Justin Trudeau's state visit to India continues (to Feb. 23)
Every morning BNN's Managing Editor Noah Zivitz writes a ‘chase note’ to BNN's editorial staff listing the stories and events that will be in the spotlight that day. Have it delivered to your inbox before the trading day begins by heading to www.bnn.ca/subscribe.
