By Mike Keerma
Rattled by disappointing quarterly reports from bellwether stocks like
Twitter, the major North American market indices lost ground towards the end of
the week despite red-hot U.S. GDP growth of 4.1% annualized in the second
S&P 500 Composite Index
managed to gain only 0.6% on the week, but the tech-weighted
Nasdaq Composite Index
lost 1.1%. Toronto’s benchmark
S&P/TSX Composite Index
ticked down 0.3% on the week overall weighed down by the slump in tech
stocks and a 2.1% decline in the price of
on the week.
In company news, shares of social media giant
Facebook Inc. (NASDAQ: FB)
fell 19% on Thursday as its quarterly earnings report showed that revenue
missed expectations on slowing user growth. Weaker-than-expected revenue
growth guidance contributed to the selloff, which resulted in a drop of
about US$120 billion in market capitalization for Facebook in Thursday’s
session. Weaker earnings also bedevilled the other social media giant
Twitter Inc. (NASDAQ: TWTR), whose shares plummeted 20% on the week, as second-quarter earnings came
in below expectations.
The news wasn’t all bad in the tech sector though. Online retailer and
Amazon.com Inc. (NASDAQ: AMZN)
posted its biggest quarterly profit ever at US$2.5 billion (US$5.07 per
share), up from US$0.40 per share in the same period a year ago. The
company doubled street expectations of US$2.48 per share.
* Invesco changes fund names.
announced that effective with the close of business on July 27, it is
changing the names of the funds in its lineup of mutual funds,
institutional pooled funds, and ETFs. Funds with the Trimark and
PowerShares names will be rebranded with only the Invesco name. The
investment objectives, strategies, and portfolio management teams remain
the same for all but five funds. The full list of name changes is available
in Invesco’s press releases for
mutual and institutional pooled funds
* Arrow launches second ETF.
Arrow Capital Management Inc. debuted its second actively managed ETF this past week, the
Exemplar Growth and Income Fund (TSX: EGIF). According to an Arrow press release, the fund “is designed to offer
investors a balance of growth and income, making strategic asset class
shifts based on where the best opportunities exist. With a focus on
providing capital preservation during times of market turmoil, the fund’s
managers aim to mitigate risk through various hedging strategies.”
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