Another week brings us to yet another set of all-time highs for the S&P and DJIA! Despite a mid-week dip caused by the Federal Reserve’s decision to keep US interest rates steady, and caution it was unlikely the rate would go down in March, these indexes rebounded to set new records. The Nasdaq followed suit, closing the week at its highest point in two years. Unfortunately, the TSX didn’t share in the fortune, closing the week on a less positive note. ☹
Items that may only interest or educate me ….
Canadian Economic news, US Economic news, Federal Open Market Committee decision, Isn’t it too risky to invest in the stock market?
Canadian Economic news
This past week’s key economic data that the Bank of Canada (BoC) considers when deciding whether to raise or lower the interest rate.
Gross Domestic Product (GDP)
Statistics Canada’s latest economic data revealed a stronger-than-expected growth in the country’s GDP for November, recording a 0.2% increase from October, surpassing analysts’ projections of a 0.1% growth. This marked a positive shift after three months of stagnant growth and two months of contraction.
The growth was predominantly driven by the goods-producing industries, which saw a 0.6% increase, compared to a modest 0.1% rise in the services-producing industries. Within the goods-producing sector, ‘Agriculture, Forestry, Fishing, and Hunting’ led with a 2.4% increase, while ‘Construction’ experienced a slight decline of 0.2%. In the services sector, ‘Transportation and Warehousing’ increased by 0.8%, but ‘Management of Companies and Enterprises’ faced a significant drop of 7.8%.
On a year-over-year basis, the GDP grew by 1.1%. The services-producing industries contributed a 1.7% increase, with ‘Retail Trade’ showing the largest growth at 3.7%. However, ‘Management of Companies and Enterprises’ saw a substantial contraction of 38.5%. In the goods-producing sector, there was an overall decline of 0.6%, with ‘Mining, Quarrying, and Oil and Gas Extraction’ being the only subsector to experience growth at 2.6%. The most notable decrease was in the ‘Agriculture, Forestry, Fishing, and Hunting’ subsector, which fell by 8.7%
If preliminary data indicating a 0.3% growth in December is confirmed, it would signal a rebound in the fourth quarter following a contraction in the third quarter, bringing the GDP growth for 2023 to an estimated 1.5%. This stronger-than-expected economic performance lessens the pressure on the BoC to reduce the benchmark interest rate. With higher GDP indicating robust economic activity, the need for stimulating measures like lower interest rates diminishes, as such policies are typically implemented to boost borrowing and spending during slower economic periods. If the economy continues to exhibit solid growth, the BoC might be less inclined to lower rates.
Canadian market volatility
The Canadian stock markets’ ‘fear gauge,’ (VIXC) represented by the TSX 60 VIXI, ended the week at 11.63, marking a slight increase from the previous week’s reading of 11.49. This heightened volatility is likely attributed to the US Federal Reserve’s decision to keep interest rates unchanged, along with a decline in energy and commodity prices.
The VIXC’s volatility thresholds are generally categorized as “high” for readings above 20 and “low” for those below 20. Despite the slight uptick in volatility, the current reading of 11.63 remains well below the threshold, indicating that investors are still confident and optimistic about the Canadian markets.
US Economic news
This past week’s key data points that the Federal Reserve (Fed) considers when deciding whether to raise or lower the interest rate.
Jobs
Recent reports on job openings, private payroll growth, and nonfarm payroll employment provide a comprehensive view of the current state of the US job market.
Job Openings and Labor Turnover Survey (JOLTS)
The latest JOLTS data for December highlighted a modest uptick in job openings, reaching 9.026 million and surpassing analysts’ forecasts. This figure, slightly above November’s revised count of 8.925 million, highlights the resilience of the job market, typically a positive indicator for the stock market. The ‘Professional and Business Services’ sector saw the biggest increase, adding 239,000 openings, whereas the ‘Leisure and Hospitality’ sector suffered the biggest decrease, losing 131,000 openings.
ADP National Employment Report
According to the ADP report for January, the trend of slowing employment growth in 2023 persisted into the new year. The latest data showed private payrolls added 107,000 jobs in January, down from December’s revised figure of 158,000 and falling short of the expected 145,000 new jobs. The report also indicated a continued slowing in wage growth. For those who remained in their jobs, wages typically increased by 5.2%, down slightly from 5.4% in December, while those switching jobs generally received a 7.2% increase in wages.
Employment Situation Report (ESR)
The January ESR from the Labor Department showed a significant jump in nonfarm payroll employment, with 353,000 new jobs – almost doubling the forecasted 180,000 and following a revised increase of 333,000 new jobs in December. The ‘Private education and health services’ subsector saw the biggest monthly gain, up by 112,000, while employment in the ‘Mining and logging’ subsector saw a decrease of 6,000 jobs. The unemployment rate for January remained at 3.7% for the third straight month. Average hourly earnings rose 0.6%, up from December’s gain of 0.4%, and the year over year wage increase was 4.5%, indicating wage growth remains strong.
The robust economy is underscored by the JOLTS and ESR reports, which show a strong job market, while the ADP report indicates a slowdown in hiring and wage growth. These mixed signals suggest a cautious optimism for achieving a ‘soft landing,’ where inflation eases to 2% without triggering a recession. However, this may cause the Fed to delay potential interest rate cuts (investors had hoped for cuts as early as March) until the second quarter.
American market volatility
The CBOE Volatility Index (VIX), also known as the ‘fear gauge,’ rose to 13.85 at the end of the week, after reaching 13.26 the previous week. The slight increase came after a week of good labour data that beat expectations and overall decent corporate quarterly earnings. However, the VIX remains well below its historical average of around 20, reflecting continued investor optimism. A strong economy and labour market, coupled with shrinking inflation should provide investors with reason for optimism.
The VIX is a measure of the US investors’ expectation of short-term volatility based on S&P 500 options prices.
Consumer Confidence Index (CCI)
The Conference Board’s Consumer Confidence Index (CCI) climbed to its highest level since December 2021, registering at 114.8 in January, up from a revised figure of 108.0 in December. This increase reflects a combination of factors including a strong economy, a robust job market, decreasing inflation, and discussions by the Fed about lowering the benchmark interest rate.
Consumer Sentiment Index (CSI)
The University of Michigan’s Consumer Sentiment Index (CSI) for January saw a significant increase, registering a final reading of 79.0, which marks a 13.3% increase from December’s 69.7. Year-over-year, this represents an impressive 21.7% surge from 64.9 in January 2023, reaching its highest level since the markets surged during the summer 2021. The jump observed in January ranks as the sixth-largest increase since the survey began in 1978.
This surge in consumer sentiment is likely attributed to easing inflationary pressures and the sustained strength of the economy. The survey also revealed that consumers now expect inflation to taper off to 2.9%, the most optimistic outlook since December 2020.
The CSI offers insight into American consumers’ perceptions of their personal financial situations and their outlook on the broader economy, suggesting increased confidence amidst an improving economic landscape.
Federal Open Market Committee (FOMC) decision
Following the conclusion of the FOMC’s two-day meeting on January 31, the Fed announced they would maintain the US benchmark interest rate at 5.25 – 5.5%, which was widely anticipated by analysts. This decision was largely influenced by the continued strength in the labour market and inflation rates that remain above the Fed’s target of 2%, although there have been signs of inflation falling as the pace of price growth continues to slow. The Fed also acknowledged global uncertainties, such as the ongoing conflicts in Ukraine and the Middle East, along with potential risks associated with rising interest rates worldwide.
In his remarks after the meeting, Chair Jerome Powell indicated that a reduction in the benchmark rate at the upcoming March meeting seemed unlikely. The FOMC’s position is that a rate cut would be premature “until there is greater confidence that inflation is moving sustainably toward 2 percent.” Chair Powell expressed skepticism the FOMC would reach this level of confidence by their next meeting in March. In other words, the Fed wants to see more data indicating inflation continues to fall towards their goal of 2% before they start lowering the interest rate.
It appears that the benchmark rate will stay at 5.5% at least until the end of April. This means the borrowing costs remain higher for longer for both personal and business loans. The FOMC stated that any future rate adjustments will be guided by incoming data and the overall economic outlook.
But isn’t it too risky to invest in the stock market?
Previously I discussed ‘What is investing?’ and ‘Why should I invest in the stock market?’ This week, I will discuss a question I hear frequently – “Isn’t it too risky to invest in the stock market?”
Investing in the stock market offers significant growth potential, but it also carries the risk of financial loss. As someone who has experienced both wins and losses in the market, I understand this reality all too well. Historically, the market has demonstrated promising long-term growth; for instance, the S&P 500 has risen over 335% since September 1, 2001. However, it is important to remember that past performance is not a guarantee of future results. Investing demands a long-term perspective and effective risk management.
In the past two decades, we have witnessed three major ‘black swan’ events – unforeseen occurrences like 9/11, the banking crisis of 2008, and the COVID-19 pandemic. Despite the initial market downturns these events caused, recovery has always followed. From September 11, 2001, to February 2, 2024, the Canadian TSX Composite Index (TSX) has grown over 208%, and the US S&P 500 Index (S&P) has increased by more than 376%, as shown in this chart below.
While short-term market dips are inevitable, with patience and time, the markets have historically recovered, allowing investments to grow. However, if you anticipate a need for your funds in the short term (within one to three years), it is advisable to avoid investing in the stock market due to potential downturns.
Investment decisions are highly personal. You should only venture into the stock market if you are comfortable with the idea of investing, can tolerate market volatility, and accept the risk of potential losses. If you decide to invest, be prepared to dedicate time to researching companies or understanding the fees associated with Electronically Traded Funds (ETFs) and mutual funds. Just as you would not buy the first car you see on a car lot; you should not invest without doing your homework.
However, be honest about how much time and effort you are willing to invest. At a minimum you will need to set up an investment account and transfer funds into your new investing account. For those seeking minimal effort, consider ETFs, which bundle a group of stocks together. For example, an S&P ETF tracks the top 500 companies in the US, and a TSX ETF covers the top companies on the Toronto Stock Exchange, offering a mix of Canadian and American market exposure and some risk diversification.
Remember, when indexes like the S&P or TSX rise, so does the value of your investment, and vice versa. But historically, over the long term, these indexes have trended upward.
Consider setting up a monthly automatic transfer from your bank to your investment account, periodically purchasing additional shares in your ETFs. This approach allows your investment to grow over time with minimal effort.
Keep in mind, I am not a financial advisor, and it is crucial to seek professional advice before making any investment decisions.
Last week the markets were influenced by strong economic news and quarterly earnings. This week it was US jobs reports, the Fed, and more corporate earnings. Let’s see all those factors influenced the markets past week….
Weekly Market Review
Monday: all four indexes – the TSX, the S&P, the Dow Jones Industrial Average (DJIA), and the Nasdaq Composite Index (Nasdaq) – ended higher at the start of a busy week. The Fed will announce the latest update to US interest rates, the latest US employment data and many of the biggest and most influential technology companies announce their fourth quarter earnings. Oil prices slid lower on concerns about lagging demand from China.
In Canada, the TSX posted a new 20 month high on the strength of a surge in the technology sector. In trading, Technology and Consumer Staples advanced the most while Energy was the only sector not to advance.
In the US, the S&P closed at another all time high thanks to a broad rally across the American sectors, led by the Consumer Cyclicals and Technology sectors. Energy and Telecommunications Services were the only sectors to end lower.
Tuesday: a mixed day for the indexes with the growth-oriented Nasdaq and S&P ending lower as investors took some of their recent gains off the table as they awaited earnings reports from five of the Magnificent 7 companies. The value-oriented TSA and DJIA finished in the green, with the DJIA once again setting a new closing high. Oil prices rose after the International Monetary Fund presented optimistic economic growth projections of 3.1% for the upcoming year, up from 2.9% growth in October.
In Canada, the TSX reached a 21-month high thanks to gains in the Energy sector, which posted the biggest gains of all the Canadian sectors. At the other end of the spectrum, Telecommunications Services and Consumer Staples lost the most ground.
In the US, job openings in the US were higher than expected. That is great for workers but not so great for those hoping the Fed will lower the interest rate sooner rather than later. If companies are competing for workers that will drive up wages which puts upward pressure on inflation. In trading, Energy and Financials were the big winners, while Technology and Consumer Cyclicals suffered the biggest declines.
Wednesday: all four indexes fell sharply after the Fed announced they would maintain the current 5.5% US interest rate and a rate cut in March was unlikely. Oil prices dipped on news of lower economic activity out of China, lowering demand, and higher US inventories, increasing supply. With higher supply and less demand, prices could only go down.
In Canada, lower oil prices combined with the news from the Fed to send the TSX tumbling. In trading, it was a day of losses across all Canadian sectors. Industrials and Healthcare dropped the least, while Technology and Energy had the steepest declines.
In America, all sectors ended the day in the red. The Healthcare and Utilities sectors were the best performers of a bad lot, while Technology and Energy sectors were the deepest in the red.
Thursday: a day after their biggest drop in four months, the markets rebounded with all four indexes ending the session in the green.
In Canada, after the TSX’s biggest drop in two weeks, the TSX resumed its upward momentum on the strength of promising US manufacturing data and higher commodity prices. Trading on the TSX was led by the Basic Materials (miners and fertilizer manufacturers) and Industrials sectors. Technology, Energy and Financials were the only sector to end the day lower.
In the US, investors returned to the markets after yesterdays selloff and prepared for Friday’s employment report. Three of the Magnificent 7 companies reported today. Amazon (NASD: AMZN) beat fourth quarter earnings expectations and provided an optimistic outlook going forward. Meta (NASD: META) beat earning expectations, announced a US$ 50 billion share buyback, as well as a US$ 0.50 cash dividend, its first ever dividend. Apple (NASD: AAPL) also beat revenue expectations but got punished by investors when it reported it missed its sales targets for China due to strong domestic competition. In trading, all sectors advanced led by Utilities and Consumer Staples. Bringing up the rear were the Financials and Energy sectors.
Friday: the markets were mixed today as investors reacted to a much higher than anticipated US monthly jobs report. The strong jobs data likely means US interest rates will remain higher for longer. Despite the OPEC+ group’s decision to maintain current production levels, oil prices sunk on the strong US jobs news which increased the chances that interest rates would remain unchanged until May at the earliest.
In Canada, the likelihood of higher interest rates for longer led to a drop in oil and commodity prices, causing the TSX to finish the day in the red. In trading on Bay Street, Technology and Industrials posted the biggest advances, while Basic Materials and Energy suffered the biggest losses.
In the US, the momentum generated yesterday by strong earnings reports from Amazon and Meta carried over into today. The jobs report and strong earnings reports boosted investor confidence, sending all three American indexes higher, with the S&P setting another record high. On Wall Street, the markets were led higher by the Technology and Consumer Cyclicals sectors, over coming losses in the Telecommunications Services and Utilities sectors.
Weekly Market and Portfolio Review
For the week, the TSX (SPTSX) slipped 0.2%, the S&P 500 (SPX) advanced 1.4%, the DJIA (INDU) rose 1.4% and the Nasdaq (CCMP) gained 1.1%.
| Index | Weekly Streak |
| TSX: | 1-week losing streak |
| S&P: | 4-week winning streak |
| DJIA: | 4-week winning streak |
| Nasdaq: | 4-week winning streak |
Another week, another round of fresh all-time highs for the S&P and DJIA! As shown in the chart above, even a mid-week plunge triggered by the Fed’s stance on interest rates couldn’t stop these two indices from closing at new records. The Nasdaq also managed to climb to a two-year high, thanks to a boost from tech giants like Amazon and Meta.
Strong earnings across most sectors, particularly in technology, fueled the market rally. Additionally, surprisingly high January employment numbers in the US bolstered investor confidence despite the higher interest rates. While this is positive news for the job market, it likely reduces the chances of near-term Fed rate cuts.
The TSX faced a different story. While its technology sector gained 2.6%, declines in key sectors like basic materials (-1.1%) and energy (-2.2%) dragged the index down. These two sectors hold significant weight (30%) in the TSX, impacting its overall performance.
Overall, with three out of the four major North American indexes gaining at least 1%, it was a positive week. Naturally, a green week across all four indices would be ideal, but the strong gains in the US markets certainly outweigh the TSX’s slip. Hopefully, this was just a temporary setback for the TSX, and it will join the others in the green next week! 😊
| Portfolio | Weekly Streak |
| Portfolio 1: | 4-week winning streak |
| Portfolio 2: | 4-week winning streak |
| Portfolio 3: | 1-week losing streak |
The past week showcased mixed performances across the portfolios, as illustrated in the chart below. Portfolios 1 and 2 significantly outperformed the benchmarks, while Portfolio 3’s growth remained almost static.
Portfolio 1 achieved success thanks to an 11% surge in both General Motors (NYSE: GM) and Ferrari (NYSE: RACE). Furthermore, Nvidia (NASD: NVDA) had a substantial increase in its share price, up US$ 51, marking an impressive achievement for just one week. 😊
Portfolio 2, while not having any companies with substantial gains or losses, it saw a general uptick in share prices across most of its companies. Its largest holding, MongoDB (NASD: MDB), helped boost the portfolio with a 9% increase in its share price.
Portfolio 3 technically lost value this past week, down 0.03%, so it was essentially flat. Portfolio 3’s companies hovered around the breakeven line with the execption of Lithium Americas (Argentina) (TSE: LAAC) which saw its share price decline by 12%. Without this drag, Portfolio 3 probably would have joined its peers in the green. However, a loss, no matter how small, is still a loss, which is why it is now on a losing streak, as indicted in the table above. ☹
Here’s hoping Portfolio 3 will break its losing streak and rejoin the others in the win column next week. 😊
Monthly Market and Portfolio Review
For the month, the TSX (SPTSX) inched up 0.3%, the S&P 500 (SPX) added 1.6%, the DJIA (INDU) rose 1.2% and the Nasdaq (CCMP) advanced 1.0%.
As of January 30, the stock market indexes showed respectable increases for the month: the TSX was up 1.3%, the S&P 500 was up 3.3%, the DJIA was up 2.1%, and the Nasdaq was up 3.3%. However, following the Fed’s announcement on January 31 that they did not foresee lowering the US interest rate at their upcoming March meeting, all four indexes saw their monthly gains fall 42% or more to the amounts shown in the chart below. Ouch!
Despite this setback, all indexes still managed to record monthly gains, getting the year off to a positive start. While the Fed’s announcement poured cold water on investor optimism, the overall economic outlook remains cautiously positive. The US economy appears on track for a ‘soft landing’, inflation seems to be under control, and all four indexes are hovering near their record highs.
Factors contributing to the earlier rise in the markets included investor optimism about a potential reduction in interest rates by the Fed, perhaps as early as March. Additionally, ongoing geopolitical tensions in Ukraine and the Middle East, along with mixed results from corporate fourth quarter earnings reports, played a role in influencing market sentiments.
While the stock market indexes saw their January gains significantly drop on the last day of the month, two of the three portfolios didn’t fare much better. The portfolios rose throughout the month, driven by rising markets and their holdings in the mega technology companies. However, they to felt the sting of the Fed’s comments. Portfolio 1’s monthly gain fell from 8.6% to 6.2%, a drop of 23%, Portfolio 2 fell from 3.4% to 1.5%, for a fall of 48%, and Portfolio 3 went from 4.0% to 1.5%, for a 54% plunge. Fortunately, all three still were still able to register monthly gains, with Portfolio 1 more than tripling any other index or portfolio.
Companies on the Radar
Ulta Beauty (NASD: ULTA) joins the Radar List this week. The company, a major American beauty product retailer, offers over 25,000 products from 600 brands, including well-known names like Armani, Dolce & Gabana, and Lancôme. They boast one of the top loyalty programs in North America, contributing to a strong customer base that provides a reliable source of income. Importantly, their net sales and net income have grown consistently since the end of the pandemic, demonstrating positive financial performance. However, like any company, past performance does not guarantee future performance. I plan to do a deeper dive into the company to better understand the company, its potential, and its challenges.
Ulta joins the other five companies from the previous week on the Radar List shown below:
- Equitable Bank (TSE: EQB), a mid sized Canadian bank that provides financial services to consumers and businesses.
- McDonald’s (NYSE: MCD), the large sized American global fast-food chain.
- Celestica Inc. (TSE: CLS), a medium sized Canadian company that manufactures electronic products and provides supply chain services to companies around the world.
- Kinaxis (TSE: KXS), a Canadian mid sized company that provides cloud based supply chain solutions to customers around the world.
- Lumine Group (TSE: LMN), a young Canadian mid sized company that acquires communications and media software companies and then strengthens and grows the companies.
Please keep in mind that these are only companies that have piqued my interest. This is not a recommendation or financial advice. You should do your own research or contact a professional before making any investment decisions.
The Radar Check was last updated February 2, 2024.
Portfolio Update
Portfolio 1
Portfolio 1 for the week ended February 2, 2024: UP 
- Amazon’s planned acquisition of iRobot (NASD: IRBT) came to an end due to opposition from antitrust regulators in the US and the European Union (EU). The EU regulators said they would veto the deal because Amazon could unfairly promote their robotic vacuum products at the expense of the competition. The US regulators felt the deal would give Amazon another method to gather personal data, such as house layout, floor space and furniture.
- General Motors share price surged after the company reported net income rose 5.2% and provided an upbeat outlook for the year. The company also indicated they would take more shareholder friendly actions, such as dividends and share buybacks.
- PayPal (NASD: PYPL) became the latest technology company to trim its workforce. The company announced it was reducing its headcount by about 2,500 employees, or 9% of its personnel.
- Celsius Holdings’ (NASD: CELH) Celsius Energy drinks are now finally available in Canada. According to their announcement, it is the fastest growing energy drink in the US. To locate a retailer in Canada, check out www.celsius.ca
- Nvidia has developed an artificial intelligence (AI) chip specifically for the Chinese market. The chip meets all US export guidelines for shipping high end electronic products to China. This should give a boost to revenues.
- Tesla (NASD: TSLA) announced there would be a shareholder vote to move the company’s state of incorporation from Delaware to Texas. Currently, I see no benefit to the company by doing this. It seems more likely that founder Elon Musk is mad at the Delaware judge who invalidated Mr. Musk’s US$ 56 billion pay package as the Chief Executive Officer of Tesla.
Tesla has issued a recall for almost all its electric vehicles (EV) in the US to fix an incorrect font size on warning lights which could increase the risk of a collision. - Cloudflare (NYSE: NET) reported that it caught a group of hackers trying to dig deep into their network last year. The company reported the impact was “extremely limited,” however, hackers did access “some documentation and a limited amount of source code” before they were ejected the next day. The company called in fellow cybersecurity firm CrowdStrike (NASD: CRWD) to assist close the breach.
Activity
No significant activity to report this week.
Dividends
Dividends Received this week for the following companies:
Companies followed by DRIP (Dividend Re-Investment Plan) indicate additional shares were purchased with the dividend. Any cash leftover was added to the cash balance.
Canadian $
Toronto-Dominion Bank (TSE: TD)
Bank of Nova Scotia (TSE: BNS) DRIP
US $
No US$ dividends this past week.
Quarterly Reports
General Motors Co.
All currency listed in millions of US dollars, except for per share data.
Selected highlights from their fourth quarter 2023 financial results on January 30, 2024
- Revenue of $42,980 for the three months ended December 31, compared to $43,108 for the same period in 2022. A decrease of almost 3%.
- Net income of $2,102 for the three months ended December 31, compared to net income of $1,999 in the same period in 2022.
- Diluted earnings per ordinary share of $1.59 for the three months ended December 31, compared to earnings of $1.39 per share for the same period in 2022.
- Revenue of $171,842 for the year ended December 31, compared to $156,735 for the same period in 2022. An increase of over 9%.
- Net earnings of $10,127 for the year ended December 31, compared to net earnings of $9,934 in the same period in 2022.
- Diluted earnings per ordinary share of $7.32 for the year ended December 31, compared to earnings of $6.13 per share for the same period in 2022.
Alphabet Inc.
All currency listed in millions of US dollars, except for per share data.
Selected highlights from their fourth quarter 2023 financial results on January 30, 2024
- Revenue of $86,310 for the three months ended December 31, compared to $76,048 for the same period in 2022. An increase of over 13%.
- Net income of $20,687 for the three months ended December 31, compared to net income of $13,624 in the same period in 2022.
- Diluted earnings per ordinary share of $1.64 for the three months ended December 31, compared to earnings of $1.05 per share for the same period in 2022.
- Revenue of $307,394 for the year ended December 31, compared to $282,836 for the same period in 2022. An increase of over 8%.
- Net earnings of $73,795 for the year ended December 31, compared to net earnings of $59,972 in the same period in 2022.
- Diluted earnings per ordinary share of $5.80 for the year ended December 31, compared to earnings of $4.56 per share for the same period in 2022.
Skyworks Solutions, Inc.
All currency listed in millions of US dollars, except for per share data.
Selected highlights from their first quarter 2024 financial results on January 30, 2024
- Revenue of $1,201.5 for the three months ended December 29, compared to $1,329.3 for the three months ended December 30, 2022. A decrease of almost 10%.
- Net income of $231.3 for the three months ended December 29, compared to net income of $309.4 for the three months ended December 30, 2022.
- Diluted earnings per ordinary share of $1.44 for the three months ended December 31, compared to earnings of $1.93 per share for the three months ended December 30, 2022.
Amazon.com, Inc.
All currency listed in millions of US dollars, except for per share data.
Selected highlights from their fourth quarter 2023 financial results on February 1, 2024
- Revenue of $169,961 for the three months ended December 31, compared to $149,204 for the same period in 2022. An increase of almost 14%.
- Net income of $10,624 for the three months ended December 31, compared to net income of $278 in the same period in 2022.
- Diluted earnings per ordinary share of $1.03 for the three months ended December 31, compared to earnings of $0.03 per share for the same period in 2022.
- Revenue of $574,785 for the six months ended December 31, compared to $513,983 for the same period in 2022. An increase of almost 12%.
- Net earnings of $30,425 for the six months ended December 31, compared to a net loss of $2,722 in the same period in 2022.
- Diluted earnings per ordinary share of $2.90 for the six months ended December 31, compared to a loss of $0.27 per share for the same period in 2022.
Apple Inc.
All currency listed in millions of US dollars, except for per share data.
Selected highlights from their first quarter 2024 financial results on February 1, 2024
- Revenue of $119,575 for the three months ended December 30, compared to $117,154 for the three months ended December 31, 2022. An increase of over 2%.
- Net income of $33,916 for the three months ended December 30, compared to net income of $29,998 three months ended December 31, 2022.
- Diluted earnings per ordinary share of $2.18 for the three months ended December 30, compared to earnings of $1.88 per share three months ended December 31, 2022.
Ferrari N.V.
All currency listed in millions of Euros, except for per share data.
Selected highlights from their fourth quarter 2023 financial results on February 1, 2024
- Revenue of €1,523 for the three months ended December 31, compared to €1,368 for the same period in 2022. An increase of over 11%.
- Net income of €294 for the three months ended December 31, compared to net income of €221 in the same period in 2022.
- Diluted earnings per ordinary share of €1.62 for the three months ended December 31, compared to earnings of €1.21 per share for the same period in 2022.
- Revenue of €5,970 for the twelve months ended December 31, compared to €5,095 for the same period in 2022. An increase of over 17%.
- Net earnings of €1,257 for the twelve months ended December 31, compared to net earnings of €939 in the same period in 2022.
- Diluted earnings per ordinary share of €6.90 for the twelve months ended December 31, compared to earnings of €5.09 per share for the same period in 2022.
Portfolio 2
Portfolio 2 for the week ended February 2, 2024: UP
- Alimentation Couche-Tard (TSE: ATD) announced it planned to open an additional 60 Circle K branded stores in Wisconsin. The stores will provide fuel and food services, as well as car cleaning facilities. Circle K plans to build 500 stores in the next five years, many of them in North America.
- Walt Disney’s (NYSE: DIS) lawsuit alleging Florida Governor Ron DeSantis retaliated against the company was dismissed by a federal court judge. Disney claims the governor enacted two laws that effectively gave the state control over the district where Disney is located and allowed the state to pick the board of supervisors for the new district. Disney plans to appeal this decision.
- The Bank of Nova Scotia (TSE: BNS) received 21 awards at the FundGrade A+ Awards. These awards are presented annual to investment funds and their managers who demonstrate “consistent, outstanding, risk-adjusted performance throughout the year.”
Activity
No significant activity to report this week.
Dividends
Dividends Received this week for the following companies:
Companies followed by DRIP (Dividend Re-Investment Plan) indicate additional shares were purchased with the dividend. Any cash leftover was added to the cash balance.
Canadian $
Bank of Nova Scotia (TSE: BNS) DRIP
TC Energy Corp (TSE: TRP)
Dollarama Inc (TSE: DOL)
US $
No US$ dividends this past week.
Quarterly Reports
Microsoft Corp.
All currency listed in millions of US dollars, except for per share data.
Selected highlights from their second quarter 2024 financial results on January 30, 2024
- Revenue of $62,020 for the three months ended December 31, compared to $52,747 for the same period in 2022. An increase of almost 18%.
- Net income of $21,870 for the three months ended December 31, compared to net income of $16,425 in the same period in 2022.
- Diluted earnings per ordinary share of $2.93 for the three months ended December 31, compared to earnings of $2.20 per share for the same period in 2022.
- Revenue of $118,537 for the six months ended December 31, compared to $102,869 for the same period in 2022. An increase of over 15%.
- Net earnings of $44,161 for the six months ended December 31, compared to net earnings of $33,981 in the same period in 2022.
- Diluted earnings per ordinary share of $5.92 for the six months ended December 31, compared to earnings of $4.54 per share for the same period in 2022.
Brookfield Renewable Partners L.P.
All currency listed in millions of US dollars, except for per share data.
Selected highlights from their fourth quarter 2023 financial results on February 2, 2024
- Revenue of $1,323 for the three months ended December 31, compared to $1,196 for the same period in 2022. An increase of almost 11%.
- Net income of $264 for the three months ended December 31, compared to net income of $60 in the same period in 2022.
- Diluted earnings per ordinary share of $0.01 for the three months ended December 31, compared to a loss of $0.16 per share for the same period in 2022.
- Revenue of $5,038 for the twelve months ended December 31, compared to $4,711 for the same period in 2021. An increase of almost 7%.
- Net earnings of $616 for the twelve months ended December 31, compared to net earnings of $135 in the same period in 2022.
- Diluted loss per ordinary share of $0.32 for the twelve months ended December 31, compared to a loss of $0.60 per share for the same period in 2022.
Portfolio 3
Portfolio 3 for the week ended February 2, 2024: 
- Microsoft’s (NASD: MSFT) fourth quarter earnings beat expectations for both the top (revenue) and bottom lines (net income). Net income was up 33%, their best quarterly performance since September 2021. The main driver of the increased revenues was their AI enhanced cloud services.
- Royal Bank’s (TSE: RY) US banking entity, City National Bank, received a US$ 65 million fine because of faulty risk management and internal controls. The Office of the Comptroller of the Currency (OCC) issued a cease-and-desist order to City National, requiring them to take “broad and comprehensive corrective actions to improve its strategic plan.”
- GDI Integrated Facility Services (TSE: GDI) announced they have sold their Superior Solutions janitorial products distribution business to Imperial Dade Canada. GDI will retain the chemical manufacturing part of Superior Solutions.
Activity
No significant activity to report this week.
Dividends
Dividends Received this week for the following companies:
Companies followed by DRIP (Dividend Re-Investment Plan) indicate additional shares were purchased with the dividend. Any cash leftover was added to the cash balance.
Canadian $
Toronto-Dominion Bank (TSE: TD)
US $
No US$ dividends this past week.
Quarterly Reports
Microsoft Corp.
See report under Portfolio 2.
Brookfield Renewable Partners L.P.
See report under Portfolio 2.
Real Matters Inc.
All currency listed in thousands of US dollars, except for per share data.
Selected highlights from their first quarter 2024 financial results on February 1, 2024
- Revenue of $35,445 for the three months ended December 31, compared to $38,165 for the same period in 2022. A decrease of over 7%.
- Net loss of $3,598 for the three months ended December 31, compared to a net loss of $4,619 in the same period in 2022.
- Diluted loss per ordinary share of $0.05 for the three months ended December 31, compared to a loss of $0.06 per share for the same period in 2022.