Daily roundup of research and analysis from The Globe and Mail’s market strategist Scott Barlow
RBC Capital Markets head of global energy research Greg Pardy has made two changes to his Global Energy Best Ideas list, removing Archrock Inc. and Pacific Gas and Electric Co.,
“In January, the RBC Global Energy Best Ideas List was down 0.8% compared to the iShares S&P Global Energy Sector ETF (IXC) which was up 2.4% and a hybrid benchmark (75% IXC, 25% JXI – iShares Global Utilities ETF) that was also up 2.4% on a sequential basis. Since its inception in February 2013, the RBC Global Energy Best Ideas List is up 176.8% compared to the S&P Global Energy Sector ETF up 34.3%. This month, we are removing Archrock, Inc. from the list, as well as PG&E Corporation due to a recent suspension in coverage”
The stocks remaining on the list are Shell, Suncor Energy, California Resources, Chord Energy Corporation, ConocoPhillips, ARC Resources, PrairieSky Royalty, Canadian Natural Resources, Woodside Energy, Enerflex Ltd., SLB, Subsea 7, AltaGas Ltd., Pembina Pipeline Corporation, Energy Transfer LP and Northland Power Superior Plus
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BMO senior economist Robert Kavcic summarizes a maddening day in domestic markets,
“Markets were busy on Monday reacting to the announced 25% tariff on Canadian imports by the U.S., and subsequent retaliation by Canada. The Loonie slid to 67.6 US cents at one point, the lowest level since 2003, before rallying back on word that the tariffs will be paused for 30 days. Equities, meantime, sold off on both sides of the border with banks and industrials hit relatively hard in Canada, leaving the TSX down just over 1%. Some rate-sensitive areas of the TSX benefitted alongside a rally in GoC yields. U.S. equities fared less bad (S&P 500 -0.8%), but still don’t like the prospect of additional inflation pressure delaying further Fed easing even longer. A trade war is certainly not good for equities on either side of the battle”
“BMO: “Markets respond”” – (chart, research excerpt) Bluesky
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Also from BMO, chief strategist Brian Belski’s new North American Income Guided Portfolio has had a good start,
“Our North American Income Guided Portfolio gained 4.5% in January, outperforming its blended dividend aristocrats benchmark by 250bps. 24 of our 30 names posted positive returns in January. Goldman Sachs, JPMorgan Chase and Brookfield Asset Management were top performers in January. These gains were partially offset by weakness from Apple, Restaurant Brands and Lockheed Martin. Performance: January = Outperformed by 2.5%; YTD = Outperformed by 2.5%”
The stocks are TELUS Corporation, Verizon Communications Inc., Canadian Tire Corporation, Restaurant Brands International Inc., Altria Group Inc., Enbridge Inc., Suncor Energy Inc., Bank of America Corp, Brookfield Asset Management Ltd., BlackRock Inc., Goldman Sachs Group Inc., JPMorgan Chase 8 Co., Morgan Stanley, National Bank of Canada, Power Corporation of Canada, Royal Bank of Canada, Toronto-Dominion Bank, Gilead Sciences Inc., UnitedHealth Group, Canadian National Railway Company, General Dynamics Corporation, Lockheed Martin Corporation, Waste Management Inc., Apple Inc., Cisco Systems Inc., Microsoft Corporation, Eastman Chemical Company, LyondellBasell Industries NV, Brookfield Infrastructure Corp. (New York) Class A, and Emera Incorporated.
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Diversion: “Hundreds of Ducks Found Dead of Suspected Bird Flu Around Chicago” – Gizmodo