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S&P 500 closes shy of record as US election kicks into high gear – Aljazeera.com

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4 years ago

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The S&P 500 index on Monday once again closed just shy of its all-time record, while the Dow Jones Industrial Average finished in the red, as investors positioned their portfolios for the United States presidential election that kicks into high gear this week. 

The S&P 500 – a gauge for the health of US retirement and college savings accounts – finished up 0.27 percent at 3,381.99. That put the benchmark index within a hair’s breadth of its all-time closing record of 3,386 reached on February 19 – before COVID-19 lockdowns plunged the US economy into its deepest recession since the Great Depression of the 1920s. 

Since bottoming out in March, the S&P has come roaring back to within striking distance of its pre-pandemic peak, driven by trillions of dollars in stimulus from the US Federal Reserve and Congress to help businesses, workers and consumers cope with the unprecedented financial fallout of the pandemic. 

Much of the S&P 500’s impressive rebound is courtesy of a red hot rally in technology shares that have benefitted from remote work and shifting consumer habits in the wake of the pandemic.

Shares compromising the S&P 500 are weighted by their market capitalisation or the total value of a company’s outstanding shares.

Apple, Microsoft, Amazon, Google parent Alphabet and Facebook accounted for 14 percentage points of the index’s more than 50 percent rally since March, analysts at Goldman Sachs said in a note to clients on Sunday. Those tech behemoths now constitute a massive 23 percent of the index’s capitalisation.

“Stated differently, the other 495 stocks collectively contributed just 72 percent of the rebound,” said Goldman.

The enduring love affair investors are having this year with tech stocks helped drive the Nasdaq Composite Index to another record close on Monday of 11,129.73. 

Breaking with the winning streak on Wall Street, the Dow – which weights stocks by their price and not their overall market value – finished the session down 0.31 percent at 27,844.91.

The US elections are entering a turbo-charged phase with the Democratic and Republican presidential nominating conventions on tap for this week and next week, respectively.

Goldman Sachs analysts on Sunday raised their S&P 500 year-end price target to 3,600 from 3,000, but noted that  uncertainty surrounding the election “represents a significant risk to our year-end forecast”.

“The coronavirus introduces a major complication in the timely tabulation of voting results,” Goldman noted. “Consider the New York 12th Congressional District Democratic primary, where it took six weeks to count all the absentee ballots and determine a winner. And this was just a primary election.”

Investors are waiting for a read on the pulse of US consumers with major retailers including Walmart, Target and Home Depot reporting earnings this week. 

One huge uncertainty hanging over consumers – and the broader US economy which is largely powered by consumer spending – are stalled negotiations between Democrats and Republicans in Congress over a new round of virus relief aid.

Banking and financial shares came under pressure on Monday after Warren Buffet’s Berkshire Hathaway revealed in regulatory filings on Friday that it has significantly pared back its holdings in major US banks including Wells Fargo and JPMorgan Chase and dissolved its stake in Goldman Sachs Group.  

Shares of Wells Fargo and JPMorgan Chase closed down 3.28 percent and 2.63 percent respectively, while Goldman Sachs shares finished down 2.35 percent.  

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Carry On Canadian Business. Carry On!

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11 hours ago

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October 22, 2024

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Human Resources Officers must be very busy these days what with the general turnover of employees in our retail and business sectors. It is hard enough to find skilled people let alone potential employees willing to be trained. Then after the training, a few weeks go by then they come to you and ask for a raise. You refuse as there simply is no excess money in the budget and away they fly to wherever they come from, trained but not willing to put in the time to achieve that wanted raise.

I have had potentials come in and we give them a test to see if they do indeed know how to weld, polish or work with wood. 2-10 we hire, and one of those is gone in a week or two. Ask that they want overtime, and their laughter leaving the building is loud and unsettling. Housing starts are doing well but way behind because those trades needed to finish a project simply don’t come to the site, with delay after delay. Some people’s attitudes are just too funny. A recent graduate from a Ivy League university came in for an interview. The position was mid-management potential, but when we told them a three month period was needed and then they would make the big bucks they disappeared as fast as they arrived.

Government agencies are really no help, sending us people unsuited or unwilling to carry out the jobs we offer. Handing money over to staffing firms whose referrals are weak and ineffectual. Perhaps with the Fall and Winter upon us, these folks will have to find work and stop playing on the golf course or cottaging away. Tried to hire new arrivals in Canada but it is truly difficult to find someone who has a real identity card and is approved to live and work here. Who do we hire? Several years ago my father’s firm was rocking and rolling with all sorts of work. It was a summer day when the immigration officers arrived and 30+ employees hit the bricks almost immediately. The investigation that followed had threats of fines thrown at us by the officials. Good thing we kept excellent records, photos and digital copies. We had to prove the illegal documents given to us were as good as the real McCoy.

Restauranteurs, builders, manufacturers, finishers, trades-based firms, and warehousing are all suspect in hiring illegals, yet that becomes secondary as Toronto increases its minimum wage again bringing our payroll up another $120,000. Survival in Canada’s financial and business sectors is questionable for many. Good luck Chuck!. at least your carbon tax refund check should be arriving soon.

Steven Kaszab
Bradford, Ontario
skaszab@yahoo.ca

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Imperial to cut prices in NWT community after low river prevented resupply by barges

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14 hours ago

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October 22, 2024

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NORMAN WELLS, N.W.T. – Imperial Oil says it will temporarily reduce its fuel prices in a Northwest Territories community that has seen costs skyrocket due to low water on the Mackenzie River forcing the cancellation of the summer barge resupply season.

Imperial says in a Facebook post it will cut the air transportation portion that’s included in its wholesale price in Norman Wells for diesel fuel, or heating oil, from $3.38 per litre to $1.69 per litre, starting Tuesday.

The air transportation increase, it further states, will be implemented over a longer period.

It says Imperial is closely monitoring how much fuel needs to be airlifted to the Norman Wells area to prevent runouts until the winter road season begins and supplies can be replenished.

Gasoline and heating fuel prices approached $5 a litre at the start of this month.

Norman Wells’ town council declared a local emergency on humanitarian grounds last week as some of its 700 residents said they were facing monthly fuel bills coming to more than $5,000.

“The wholesale price increase that Imperial has applied is strictly to cover the air transportation costs. There is no Imperial profit margin included on the wholesale price. Imperial does not set prices at the retail level,” Imperial’s statement on Monday said.

The statement further said Imperial is working closely with the Northwest Territories government on ways to help residents in the near term.

“Imperial Oil’s decision to lower the price of home heating fuel offers immediate relief to residents facing financial pressures. This step reflects a swift response by Imperial Oil to discussions with the GNWT and will help ease short-term financial burdens on residents,” Caroline Wawzonek, Deputy Premier and Minister of Finance and Infrastructure, said in a news release Monday.

Wawzonek also noted the Territories government has supported the community with implementation of a fund supporting businesses and communities impacted by barge cancellations. She said there have also been increases to the Senior Home Heating Subsidy in Norman Wells, and continued support for heating costs for eligible Income Assistance recipients.

Additionally, she said the government has donated $150,000 to the Norman Wells food bank.

In its declaration of a state of emergency, the town said the mayor and council recognized the recent hike in fuel prices has strained household budgets, raised transportation costs, and affected local businesses.

It added that for the next three months, water and sewer service fees will be waived for all residents and businesses.

This report by The Canadian Press was first published Oct. 21, 2024.

The Canadian Press. All rights reserved.

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U.S. vote has Canadian business leaders worried about protectionist policies: KPMG

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14 hours ago

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October 22, 2024

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TORONTO – A new report says many Canadian business leaders are worried about economic uncertainties related to the looming U.S. election.

The survey by KPMG in Canada of 735 small- and medium-sized businesses says 87 per cent fear the Canadian economy could become “collateral damage” from American protectionist policies that lead to less favourable trade deals and increased tariffs

It says that due to those concerns, 85 per cent of business leaders in Canada polled are reviewing their business strategies to prepare for a change in leadership.

The concerns are primarily being felt by larger Canadian companies and sectors that are highly integrated with the U.S. economy, such as manufacturing, automotive, transportation and warehousing, energy and natural resources, as well as technology, media and telecommunications.

Shaira Nanji, a KPMG Law partner in its tax practice, says the prospect of further changes to economic and trade policies in the U.S. means some Canadian firms will need to look for ways to mitigate added costs and take advantage of potential trade relief provisions to remain competitive.

Both presidential candidates have campaigned on protectionist policies that could cause uncertainty for Canadian trade, and whoever takes the White House will be in charge during the review of the United States-Mexico-Canada Agreement in 2026.

This report by The Canadian Press was first published Oct. 22, 2024.

The Canadian Press. All rights reserved.

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