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The major U.S. and Canadian stock indexes posted solid gains on the week, closing Friday at record highs as investor sentiment continued to bubble over on the optimism side. Driving gains on U.S. markets last week was stronger-than-expected labor market data in the U.S., with the economy creating 531,000 new jobs in October, as unemployment fell to 4.6% in the month. About 90% of S&P 500 companies have now reported quarterly earnings, and about 82% of those have exceed street estimates for the period, further bolstering investor sentiment. In addition, as widely expected, the U.S. Federal Reserve Board last week said it would begin to taper its quantitative easing program of asset purchases this month. The yield on the benchmark U.S. Treasury 10-year note dropped to 1.453% at Friday’s close, its lowest level since late in September.
Spurred on by a surge in shares of Pfizer Inc. after a release of a study suggesting a successful test of a new Covid-19 antiviral drug, the S&P 500 Composite Index gained 2.0% on the week. The Nasdaq Composite Index followed suit, advancing 3.1% on the week.
In Canada, S&P/TSX Composite Index gained 2.0% on the week, as the Office of the Superintendent of Financial Institutions lifted dividend payout restrictions that were imposed during the pandemic on federally-regulated financial institutions. Manulife Financial Corp. announced a dividend hike, and investors anticipate further dividend announcements from the banking majors. Gains were lead by the consumer staples and consumer discretionary sectors. The price of gold also rose 2.0% on the week, propelling the S&P/TSX Equal Weight Global Gold Index to a 4.5% gain on the week. Crude oil advanced 3.0% in Friday’s session, helping boost the energy sector, but still lost 2.5% on the week overall.
* Harvest launches sports and entertainment ETF. Harvest Portfolios Group Inc. on Nov. 5 debuted its new Harvest Sports & Entertainment Index ETF (TSX: HSPN). The fund tracks the Solactive Sports & Entertainment Index of North American and global listed companies that are engaged in iGambling, eGaming, sports equipment and apparel, event bookings and entertainment, and professional sports.
* Horizons debuts new savings ETF. Horizons ETFs Management on Nov. 2 launched its Horizons High Interest Savings ETF (TSX: CASH), aiming to maximize monthly income while preserving capital and liquidity by investing primarily in high interest deposit accounts with Canadian banks. The fund will seek to pay out regular monthly distributions of income.
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