Market week: Stocks stimulated by stimulus

Market week: Stocks stimulated by stimulus

Stock indexes end week at record high closes


In an otherwise uneventful week (for markets) ahead of holiday long weekend market closures in both the U.S. and Canada, the major North American stock indexes posted record high closes on Friday, stimulated by a U.S. congressional house committee’s approval of one half of President Biden’s pandemic relief plan – which would send $1,400 cheques to millions of Americans. In addition, fourth-quarter 2020 earnings results continue to exceed year-ago levels, boosting investor expectations of more earnings strength to come in the first half of this year.

With crude oil gaining 4.7% on the week, the energy sector led the main North American stock indexes higher, with Canada’s benchmark S&P/TSX Composite Index advancing 1.8% on the week. The U.S. blue-chip S&P 500 Composite Index gained 1.2% on the week, while the technology-weighted Nasdaq Composite Index rose 1.7%.

Monitor the main stock and commodity indexes daily with the Fund Library’s interactive Markets Page.

Fund news

* Fidelity merges emerging market funds. Fidelity Investments Canada on Feb. 11 announced the merger of Fidelity Frontier Emerging Markets Fund into Fidelity Emerging Markets Fund as of June 4, 2021.

* National Bank launches four ETFs. National Bank Investments Inc. on Feb. 11 debuted four new exchange-traded funds. Annamaria Testani, Senior Vice-President, National Sales at National Bank Investments, said the National Bank ETF lineup is evolving “to not only cover a broad range of asset classes, but also to serve investors across a variety of market segments.”

NBI Sustainable Canadian Corporate Bond ETF (TSX: NSCC) invests in Canadian corporate bonds through other mutual funds, while considering ESG issues.

NBI Canadian Dividend Income ETF (TSX: NDIV) invests in stocks of Canadian companies that pay dividends, primarily through holdings of other mutual funds.

NBI Active U.S. Equity ETF (TSX: NUSA) invests in common shares of U.S. companies, through holdings of mutual funds.

NBI Active International Equity ETF (TSX: NINT) invests in shares of international companies.

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