U.S. stocks climbed to the highest in almost six weeks amid a rally in giant technology companies as traders awaited earnings from banks and news on a fresh round of economic stimulus.
The S&P 500 traded near session highs and the Nasdaq 100 surged more than 3%, with Amazon.com Inc. and Apple Inc. soaring ahead of key events. The online retailer kicks off its Prime Day on Tuesday, while the tech behemoth — whose price target was raised by RBC Capital Markets — is set to embrace 5G as one of its most significant additions to this year’s iPhones. Twitter Inc. rallied on an upgrade at Deutsche Bank, which also boosted its price estimates for other companies that derive their revenue from digital advertising such as Facebook Inc. and Alphabet Inc. Lenders including JPMorgan Chase & Co. and Wells Fargo & Co. report their results this week.
Read: Whale’s Resurfacing Shows Danger Persists in the Options Market
Prospects for a quick end to the stalemate over a new stimulus faded Monday with members of the House being told not to expect any action this week and many Senate Republicans rejecting the White House proposal for a deal. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin are expected to talk more this week as they attempt to bridge the gap between the Democrat’s $2.2 trillion proposal and the administration’s $1.8 trillion counteroffer.
“The stimulus stalemate still looms large, though it failed to derail the market,” said Chris Larkin, managing director of trading and investment product at E*Trade Financial. “And with high expectations for big-bank earnings kicking off the season, we could get a clearer picture into just how far we’ve come in terms of economic recovery.”
Democrats attacked the Supreme Court nomination of Amy Coney Barrett as a move to kill the Affordable Care Act in the midst of a pandemic and sharply shift the court to the right at a Senate hearing that’s all but certain to lead to her confirmation just days before the election.
Elsewhere, oil slumped with workers in the U.S. Gulf heading back following Hurricane Delta’s landfall and Libya taking a major step toward reopening its biggest field. The offshore yuan sank after China’s central bank took steps to restrain the currency’s rally. The Treasury market was closed for a U.S. holiday.
Here are some key events coming up:
JPMorgan, Citigroup and BlackRock report earnings on Tuesday; results from Wells Fargo, Bank of America and Goldman Sachs are due Wednesday; Morgan Stanley’s earnings are scheduled for Thursday.U.K. Prime Minister Boris Johnson set a deadline of Thursday to thrash out the outline of a European Union trade deal.European Central Bank President Christine Lagarde leads off the virtual annual meetings of the International Monetary Fund and the World Bank Group. Through Oct. 18.
These are some of the main moves in markets:
The S&P 500 climbed 1.8% as of 12:51 p.m. New York time.The Stoxx Europe 600 Index gained 0.7%.The MSCI Asia Pacific Index advanced 0.8%.
The Bloomberg Dollar Spot Index gained 0.1%.The euro fell 0.2% to $1.1806.The British pound climbed 0.2% to $1.3068.
Germany’s 10-year yield fell two basis points to -0.54%.Britain’s 10-year yield declined one basis point to 0.272%.
The Bloomberg Commodity Index fell 0.5%.West Texas Intermediate crude declined 3.1% to $39.34 a barrel.Gold weakened 0.4% to $1,923.05 an ounce.
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Warning: Don't Save in Your TFSA! Do This Instead – The Motley Fool Canada
Too many Canadians are still saving in their Tax-Free Savings Account (TFSA)! However, the Bank of Canada is planning to keep the benchmark interest rate at close to zero at least until 2023. This means that if you put money in a savings account or guaranteed investment certificate (GIC), you won’t make much.
Instead of saving in your TFSA, you should consider investing in it. Currently, the best three-year GIC rate is offered by EQ Bank and going for 1.15%. The long-term average Canadian stock market returns are 7% — six times what you would make from the GIC.
You can potentially make even greater returns by placing your money in specific stocks. If you like consistent income, you would be interested in Toronto-Dominion Bank (TSX:TD)(NYSE:TD) and TC Energy (TSX:TRP)(NYSE:TRP).
Both are wonderful businesses, but their stocks have sold off recently, making them attractive long-term investments that should outperform market returns over the next few years.
TD stock provides a 5.4% dividend
Because of pandemic disruptions to the economy, higher credit losses are expected at the Canadian banks this year. TD stock has become particularly attractive among the big Canadian banks given its quality and growth potential on an economic rebound, especially with its meaningful exposure to the U.S. retail banking market.
TD stock’s correction of 22% in the last 12 months is the perfect opportunity to buy for an elevated dividend yield of 5.4%. This is 35% more income than its appealing yield of 4% in a normal economy.
Importantly, the stock is undervalued for long-term investment. In a normal year, TD generates revenues of about $38 billion and net income of more than $11 billion. Inevitably, this year, its revenues and earnings are going to be lower.
At about $58.50 per share at writing, the compelling stock can deliver total returns of about 15% per year over the next three to five years. Furthermore, you can expect its dividend to increase during that period.
TC Energy offers a 6.1% dividend
TC Energy is a resilient business that provides essential services in the energy sector. It just reported its third-quarter results today. Management highlighted that the company’s operations, flows, and utilization levels remain in line with historical and seasonal norms.
Year to date, its revenues only dipped 3% and its comparable EBITDA essentially stayed flat against the same period in the prior year. Moreover, its earnings per share actually climbed 15% to $3.55, putting its payout ratio at 68% for the period.
TC Energy’s defensive business performance doesn’t really warrant the stock’s decline of 20% in the last 12 months. It also has a secured capital program of $37 billion from 2020 to 2023 to grow its business. About $5 billion of the projects are expected to complete this year.
At about $52.90 per share at writing, the attractive stock can deliver total returns of about 15% per year over the next three to five years. A dividend increase of 5-7% per year should be no problem for the Canadian Dividend Aristocrat.
The Foolish takeaway
Understandably, Canadians might want to be conservative with their money-management strategies during the pandemic. Investing in blue-chip dividend stocks like TD stock and TC Energy stock is as conservative as it gets in the stock investing world.
Take a closer look at the businesses and consider investing in their undervalued stocks in your TFSA for outsized tax-free income and returns in the long run.
Speaking of attractive stocks to check out…
Motley Fool Canada‘s market-beating team has just released a brand-new FREE report revealing 5 “dirt cheap” stocks that you can buy today for under $49 a share.
Our team thinks these 5 stocks are critically undervalued, but more importantly, could potentially make Canadian investors who act quickly a fortune.
Don’t miss out! Simply click the link below to grab your free copy and discover all 5 of these stocks now.
Fool contributor Kay Ng owns shares of The Toronto-Dominion Bank and TC Energy.
Shoppers' privacy violated at major Canadian malls: Privacy commissioners – CBC News: The National
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- Shoppers’ privacy violated at major Canadian malls: Privacy commissioners CBC News: The National
- Cadillac Fairview collected millions of images of shoppers at malls across Canada: Privacy watchdog CP24 Toronto’s Breaking News
- Cadillac Fairview secretly collected personal information from 5M shoppers across Canada: privacy commissioners KitchenerToday.com
- Mall real estate company collected 5 million images of shoppers, say privacy watchdogs CBC.ca
- Cadillac Fairview collected 5 million shoppers’ images without consent Yahoo Canada Finance
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Man rushed to hospital after possible assault in Rexdale – CityNews Toronto
A man has been rushed to hospital after possibly being assaulted in Rexdale.
Officers were called Mount Olive and Silverstone Drives just before 7:30 p.m. to reports of an assault.
The victim was found unconscious on the scene and was taken to hospital in serious condition.
Police say it appears the man suffered a head injury.
No further details have been released at this point.
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Warning: Don't Save in Your TFSA! Do This Instead – The Motley Fool Canada
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