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Asif Imtiaz Nov 27, 2017
Although we will see a number of earnings from the Canadian banking sector this week, expect low volatility as there will be no major earnings reports on the first and last days of the week.
Three large-cap Canadian banks with sizable international presences in both North and South America – Bank of Nova Scotia (BNS ), Royal Bank of Canada (RY ) and Toronto Dominion Bank (TD ) – are set to release their Q3 earnings this week, and analysts are expecting all three to post substantial increases in quarterly EPS compared to last year amid a boom in mortgage sales.
Besides the new home sales data for November on Monday, investors will have to wait till Friday to see any other important economic data releases, including the manufacturing PMI reading from the Institute for Supply Management. There will be the Q3 preliminary GDP data on Wednesday, but given the roaring labor market and high consumer sentiment in the past few months, even a higher than 3% real GDP might have been priced in by the market.
To sum up, the Dow was gaining so much bullishness in October that analysts were expecting it to jump past the 24,000 marks before December, but it remained mostly range-bound in the last few weeks. While a solid real GDP can jumpstart the bullish momentum this week, the key will be continuous improvements in the housing market – so, let’s see how new home sales fared in November.
Check out last week’s Market Glance here in which investors awaited the Fed meeting minutes to see what the newly selected Fed chair had to say.