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Hamilton Spectator
7 days ago
- Business
- Hamilton Spectator
U.S., Canadian markets move higher as investors shrug off tariff ‘noise'
Canada's main stock index edged up and U.S. markets climbed as investors tried to tune out the latest noise from U.S. President Donald Trump's tariff war. 'I think everybody's taking a wait-and-see approach,' said Allan Small, senior investment adviser at iA Private Wealth, referring to worldwide 'reciprocal' tariffs on pause for at least another month. 'It would be a very bad thing for the United States to reinstate these large tariffs. So I think the market is saying that's not going to happen and moving higher based on anticipating something good coming out of some trade negotiations.' The S&P/TSX composite rose 37.68 points to 26,426.64. The Canadian market has benefited recently from strength in gold — a safe haven investors tend to flee to during rocky times — as well as energy and financials, Small said. In New York, the Dow Jones industrial average was up 214.16 points at 42,519.64. The S&P 500 index was up 34.43 points at 5,970.37, while the Nasdaq composite was up 156.34 points at 19,398.96. 'It's interesting that the market is shrugging off a lot of the noise coming out of Washington with respect to the increase in steel and aluminum tariffs,' Small said. In March, Trump imposed 25 per cent tariffs on steel and aluminum imports to the United States. Trump announced his intention to double the duties at a steel plant on Friday. Canada is the largest steel supplier to the United States, accounting for nearly 25 per cent of all imports in 2023. As Canadian officials were preparing for meetings in Washington on Tuesday, White House press secretary Karoline Leavitt said Trump would sign an executive order to increase the duties to 50 per cent. U.S. markets are heavily swayed by moves in big tech stocks like Apple, Nvidia and Meta. And those stocks tend to in turn be driven largely by the latest tariff news. 'Trade's ruling the day and the one sector that seems to be heavily affected is tech,' Small said. 'As long as the U.S. is talking to China, tech seems to be doing OK.' Small said it appears the global trade war is entering a new phase centred around negotiating deals, Small added. Investors, meanwhile, are becoming immune to the almost daily back-and-forth. 'The president seems to come out swinging every time, swinging for the fences, asking for this, that and the other,' Small said. 'And then in the end he seems to pull back and it ends up being not as scary as initially thought.' North of the border, the Bank of Canada is set to announce its latest interest rate decision on Wednesday. Small said it's likely the central bank will hold off cutting rates until it can get a clearer picture of Canada's economic health, once second-quarter GDP numbers are in. 'But I think it can go either way at this point.' Statistics Canada is also set to release the May jobs report on Friday, and Small said that should provide a more current view of how well the Canadian economy is faring. The Canadian dollar closed at 72.87 cents US compared with 72.96 cents US on Monday. The July crude oil contract was up 89 cents US at US$63.41 per barrel and the July natural gas contract was up three cents US at US$3.72 per mmBTU. The August gold contract was down US$20.10 at US$3,377.10 an ounce and the July copper contract was down two cents US at US$4.83 a pound. This report by The Canadian Press was first published June 3, 2025. Companies in this story: (TSX: GSPTSE, TSX: CADUSD)
Globe and Mail
30-05-2025
- Business
- Globe and Mail
Why this $400-million money manager is ditching Pfizer and buying the tech dip
Money manager Allan Small has been using the latest market downturn to upgrade his portfolio, selling off what he calls 'B-class' stocks and replacing them with 'A-class' companies that recently went on sale. 'These are names you always wanted to own but were just too expensive,' says Mr. Small, senior investment advisor with Allan Small Financial Group at iA Private Wealth Inc. in Toronto, who oversees more than $400-million in client assets. Examples include some of the big U.S. tech stocks that plummeted in April amid the market turmoil caused by U.S. President Donald Trump's tariff war. 'I've been trying to take advantage of the situation because even though the current president has caused a lot of volatility … he's a businessman and I believe that over his term, the markets will rebound, as they have started to already [since the April selloff],' he says. Mr. Small's portfolios include North American equities and bonds, the mix of which depends on the client's risk tolerance and investment timeline. As of May 26, his average equity portfolios for medium-risk investors returned between 13 and 18 per cent over the past 12 months (the range is due to different asset allocations). The three-year annualized return was about 16 per cent. The performance is based on total returns, net of fees. The Globe spoke with Mr. Small about what he's been buying and selling. Name three stocks you own today and why. Inc. AMZN-Q is a stock I've owned for clients for a couple of decades and continue to buy on dips, including recently when it got down to US$170 a share. I believe Amazon is one of the best companies in the world. I buy it for its diversification across sectors – its cloud business, retail and entertainment, including more recently live sports. I also think it has a strong management team. Even today, at US$200, I think it's a good level to buy because I think it will be a winner over the long term. It's expensive, but rightfully so, in my opinion. It's hard to compare Amazon to other companies. It's in a category of its own. Meta Platforms Inc. META-Q is another stock I buy on the dips, including again recently. We bought Meta when it was down about 30 per cent from its highs, and it's up about 15 per cent so far on that most recent purchase. Meta has great management; chief executive officer Mark Zuckerberg continues to innovate and grow the business. Meta also has a huge presence with its Facebook, Instagram and WhatsApp apps, which are used by more than three billion people daily. It also has a very successful online advertising business. We think it's a great story and will continue to be a winner over the long term. Bank of Nova Scotia BNS-T is a stock we've owned for more than 20 years for clients and bought more of recently in the high-$60 to low-$70 a share range. It has the highest-paying dividend of the major bank stocks in Canada and is a good turnaround story. Scotiabank has been restructuring away from its international business in South America and focusing more on the U.S. I like what it's doing. It will take time, but in the meantime, you're getting a 6 per cent dividend yield while you wait. I own all the banks, but lately my emphasis has been on Scotiabank and Toronto-Dominion Bank TD-T. Name a stock you sold recently. Pfizer Inc. PFE-N is a stock I've been selling aggressively in recent months after holding it in my client portfolios for about 20 years. I got frustrated with the stock. It's been cheap for a few years now, but it's been a value trap in my opinion. Even though the company has expanded its business further into oncology, people still look at Pfizer as a pandemic stock that benefits from vaccines, and people aren't getting those vaccines as much anymore. Still, the company can't seem to shake that reputation. It will, eventually, but it was time to move on. We lost money on the stock but scraped by with a small gain when you factor in dividends paid over the years. This interview has been edited and condensed.
Toronto Star
22-05-2025
- Business
- Toronto Star
S&P/TSX composite edges higher on Thursday, U.S. stocks mixed
TORONTO - Canada's main stock index edged higher on Thursday, helped by strength in the financial sector, while U.S. stock markets were mixed. The S&P/TSX composite index was up 14.84 points at 25,854.01. TD Bank's share price moved higher along with most major Canadian bank stocks on Thursday, said Allan Small, senior investment adviser at iA Private Wealth. The Toronto-based bank delivered a 'refreshing' report of its second-quarter earnings, he said, despite announcing a two per cent workforce reduction. The bank's profit of $11.1 billion or $6.27 per diluted share was up from a profit of $2.6 billion or $1.35 per diluted share a year earlier. ARTICLE CONTINUES BELOW TD shares closed at $92.81 for the day on the Toronto Stock Exchange, up 3.2 per cent. 'They beat on the top and bottom line, really all facets of their business went higher from net interest margins to setting aside less money for bad debt,' said Small. 'Trading revenues were up, their restructuring in the U.S. is going well from that money laundering situation.' Meanwhile, investors south of the border were 'buying the dips,' he said, led by technology stocks. In New York, the Dow Jones industrial average was down 1.35 points at 41,859.09. The S&P 500 index was down 2.60 points at 5,842.01, while the Nasdaq composite was up 53.09 points at 18,925.73. 'It's the ebbs and flows,' said Small. 'I think the retail investor, for whatever reason over the past little while, didn't really buy into the fall that we saw over the last couple of months. They were there to buy the dips. They were there to hold on. The average retail investor used that as a buying opportunity and they've been rewarded.' ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW He said investors will be keeping their ears open for any news out of Washington, where the House on Thursday passed a legislative package that combines tax breaks, spending cuts, border security funding and other priorities of U.S. President Donald Trump's administration. Republicans are trying to make permanent the individual income and estate tax cuts passed in Trump's first term plus enact promises he made in the 2024 campaign to not tax tips, overtime and interest on some auto loans. The bill now heads to the Senate. 'That's going to be a big deal,' said Small. 'If the president can pass this … continuation of the Trump tax cuts, that's going to be key. Not sure (the markets) like it too much because the tax cuts could be inflationary, add more debt to the mix, but we'll have to see.' Worries about tax cuts inflating the U.S. government's debt sent yields higher this week, enough to potentially send the stock market to its worst week in the last seven. The moves in the bond market are likely to make mortgages more expensive for U.S. home buyers, along with other kinds of loans. The Canadian dollar traded for 72.10 cents US compared with 72.21 cents US on Wednesday. The July crude oil contract was down 37 cents US at US$61.20 per barrel and the July natural gas contract was down 10 cents US at US$3.64 per mmBTU. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW The June gold contract was down US$18.50 at US$3,295 an ounce and the July copper contract was up less than a penny at US$4.68 a pound. —With files from The Associated Press This report by The Canadian Press was first published May 22, 2025. Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
Toronto Star
25-04-2025
- Business
- Toronto Star
S&P/TSX composite up more than 250 points, U.S. stocks rise for third day
TORONTO - Canada's main stock index rose more than 250 points in a broad-based rally led by base metals, while U.S. stock markets also climbed to close out a third straight day of gains. The S&P/TSX composite index closed up 254.85 points, or just over one per cent, at 24,727.53. In New York, the Dow Jones industrial average was up 486.83 points or 1.2 per cent at 40,093.40. The S&P 500 index was up 108.91 points or two per cent at 5,484.77, while the Nasdaq composite was up 457.99 points or 2.7 per cent at 17,166.04. ARTICLE CONTINUES BELOW Investors continue to be focused on tariffs, said Allan Small, senior investment adviser at iA Private Wealth. Though there were no new tariff announcements Thursday, markets appear to be grasping onto some hope that the U.S. is open to negotiating the duties, said Small. 'It's a good thing because now the market is saying, okay, at least there's a realization that the status quo is not acceptable. Something is going to happen, and more than likely some sort of deal will happen, and any deal is better than where we sit now,' he said. China denied it's actively negotiating with the U.S. over tariffs Thursday. The two countries rapidly ramped up their trade war after Trump announced sweeping global tariffs. But even though China denied the talks, investors still appear cautiously optimistic, said Small, noting that Trump seems to be softening his stance on trade after the fallout from his policies so far, with North American indexes down significantly year to date. 'I think the bond market is telling him something. I think the stock market is telling us something … I think the economy is speaking loud and clear,' he said. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW Adding to the three-day run for markets is a good start to earnings season in the U.S., said Small: 'There's a lot to digest.' Earnings reports so far have been positive, he said, though he noted they should be taken with a grain of salt given they largely cover the time before tariffs were enacted. Some companies likely rushed to boost their exports and imports during the first quarter ahead of tariffs, he added. Meanwhile, executives have been cautious as they speak with analysts about their results. Southwest Airlines and American Airlines both reported stronger profits than expected but pulled some financial forecasts due to the uncertainty. The Canadian dollar traded for 72.18 cents US, according to compared with 72.09 cents US on Wednesday. The June crude oil contract was up 52 cents US at US$62.79 per barrel and the June natural gas contract was down six cents US at US$3.10 per mmBTU. The June gold contract was up US$54.50 at US$3,348.60 an ounce and the May copper contract was up a penny US at US$4.85 a pound. With files from The Associated Press
Hamilton Spectator
24-04-2025
- Business
- Hamilton Spectator
S&P/TSX composite up more than 250 points, U.S. stocks rise for third day
TORONTO - Canada's main stock index rose more than 250 points in a broad-based rally led by base metals, while U.S. stock markets also climbed to close out a third straight day of gains. The S&P/TSX composite index closed up 254.85 points, or just over one per cent, at 24,727.53. In New York, the Dow Jones industrial average was up 486.83 points or 1.2 per cent at 40,093.40. The S&P 500 index was up 108.91 points or two per cent at 5,484.77, while the Nasdaq composite was up 457.99 points or 2.7 per cent at 17,166.04. Investors continue to be focused on tariffs, said Allan Small, senior investment adviser at iA Private Wealth. Though there were no new tariff announcements Thursday, markets appear to be grasping onto some hope that the U.S. is open to negotiating the duties, said Small. 'It's a good thing because now the market is saying, okay, at least there's a realization that the status quo is not acceptable. Something is going to happen, and more than likely some sort of deal will happen, and any deal is better than where we sit now,' he said. China denied it's actively negotiating with the U.S. over tariffs Thursday. The two countries rapidly ramped up their trade war after Trump announced sweeping global tariffs. But even though China denied the talks, investors still appear cautiously optimistic, said Small, noting that Trump seems to be softening his stance on trade after the fallout from his policies so far, with North American indexes down significantly year to date. 'I think the bond market is telling him something. I think the stock market is telling us something … I think the economy is speaking loud and clear,' he said. Adding to the three-day run for markets is a good start to earnings season in the U.S., said Small: 'There's a lot to digest.' Earnings reports so far have been positive, he said, though he noted they should be taken with a grain of salt given they largely cover the time before tariffs were enacted. Some companies likely rushed to boost their exports and imports during the first quarter ahead of tariffs, he added. Meanwhile, executives have been cautious as they speak with analysts about their results. Southwest Airlines and American Airlines both reported stronger profits than expected but pulled some financial forecasts due to the uncertainty. The Canadian dollar traded for 72.18 cents US, according to , compared with 72.09 cents US on Wednesday. The June crude oil contract was up 52 cents US at US$62.79 per barrel and the June natural gas contract was down six cents US at US$3.10 per mmBTU. The June gold contract was up US$54.50 at US$3,348.60 an ounce and the May copper contract was up a penny US at US$4.85 a pound. — With files from The Associated Press This report by The Canadian Press was first published April 24, 2025. Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
