How much is 20 years of extra risk worth? Nothing, at least in Canada.
The yield on Canada’s 10-year government bond briefly rose above the nation’s 30-year securities for the first time in more than a decade Thursday. The shorter-maturity notes have sold off in the last few days, pushing yields above 2.5 percent for the first time since 2014. Canada is the only developed economy with that part of its yield curve inverted, according to data compiled by Bloomberg.
The move in Canadian yields reflects broader changes in the U.S. bond market, with Treasuries getting sold off as traders grapple with surging issuance and a Federal Reserve that appears intent on boosting rates further. Canada’s 10-year debt typically reacts most whenever bonds sell off, which has contributed to pushing the yield above the 30-year, according to Mark Chandler, Toronto-based head of fixed-income research at RBC Capital Markets.
“There’s been a lot of selling of late, driven in large part by the U.S., that puts pressure on the 10-year sector,” Chandler said, adding he doesn’t expect that spread to widen much further. “You’re still talking about a handful of basis points here and to get to double digits might be a bit of a stretch.”
Top 5 Canadian Stocks To Own For 2018: Thor Industries Inc.(THO)
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Thor Industries (THO) : “They had expenses and inventory go up and it’s been hurt by both. Those are negatives.”
Hain Celestial Group (HAIN) : “They had a bad quarter with bad guidance. I can’t reassure you here. “
- [By Logan Wallace]
Tahoe Resources (TSE:THO) (NASDAQ:TAHO) – Equities research analysts at National Bank Financial reduced their FY2018 earnings estimates for shares of Tahoe Resources in a research report issued on Monday, April 9th. National Bank Financial analyst M. Parkin now forecasts that the company will earn $0.29 per share for the year, down from their prior forecast of $0.35. National Bank Financial currently has a “Sector Perform” rating and a $8.00 price objective on the stock.
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Cramer was bearish on Thor Industries (THO) and Hain Celestial Group (HAIN) .
Search Jim Cramer’s “Mad Money” trading recommendations using our exclusive “Mad Money” Stock Screener.
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LCI Industries (LCII) fell 5% on the day. Patrick Industries Inc. (PATK) dropped 4.24%. Thor Industries Inc. (THO) tanked 9.83%. Winnebago Industries Inc. (WGO) fell 8.85%.
Top 5 Canadian Stocks To Own For 2018: Nu Skin Enterprises Inc.(NUS)
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Nu Skin Enterprises (NYSE: NUS) is benefiting from two key trends: its strong presence in Asia where it books 79% of its revenue and leading brand awareness with millennials. The company has increased its dividend every year since 2001, now paying a 2% yield, and maintains a share repurchase program that returns excess cash to shareholders.
Top 5 Canadian Stocks To Own For 2018: Credit Suisse Group(CS)
- [By Lisa Levin] Gainers
Vicor Corporation (NASDAQ: VICR) rose 19.7 percent to $35 in pre-market trading. Vicor posted Q1 earnings of $0.10 per share on sales of $65.2 million.
Check-Cap Ltd. (NASDAQ: CHEK) shares rose 13.5 percent to $16.88 in pre-market trading after climbing 104.82 percent on Tuesday.
Cree, Inc. (NASDAQ: CREE) shares rose 11.3 percent to $43.81 in pre-market trading as the company reported upbeat results for its third quarter on Tuesday.
The Clorox Company (NYSE: CLX) rose 9.6 percent to $125.98 in pre-market trading.
Aduro BioTech, Inc. (NASDAQ: ADRO) rose 5.8 percent to $7.25 in pre-market trading after falling 1.44 percent on Tuesday.
STMicroelectronics N.V. (NYSE: STM) rose 5.2 percent to $22.42 in pre-market trading after reporting Q1 results.
Twitter, Inc. (NYSE: TWTR) rose 5.2 percent to $32.05 in pre-market trading as the company reported stronger-than-expected results for its first quarter on Wednesday.
Credit Suisse Group AG (NYSE: CS) rose 5 percent to $17.11 in pre-market trading following strong Q1 results.
Harmony Gold Mining Company Limited (NYSE: HMY) shares rose 4.4 percent to $2.02 in pre-market trading.
22nd Century Group, Inc. (NYSE: XXII) rose 4.9 percent to $2.15 in pre-market trading after dropping 8.07 percent on Tuesday.
Texas Instruments Incorporated (NASDAQ: TXN) rose 4.1 percent to $102.40 in pre-market trading after the company reported stronger-than-expected earnings for its first quarter on Tuesday.
iRobot Corporation (NASDAQ: IRBT) rose 3.3 percent to $61 in pre-market trading following upbeat quarterly earnings.
Find out what's going on in today's market and bring any questions you have to Benzinga's PreMarket Prep.
- [By Max Byerly]
HSBC set a €27.00 ($32.14) price objective on AXA (EPA:CS) in a research report released on Wednesday. The firm currently has a buy rating on the stock.
- [By Dustin Parrett]
Just look at what happened to traders who got involved in the now-defunct VelocityShares Daily Inverse ETN (XIV), a particularly nasty piece of financial engineering created by Credit Suisse Group (NYSE: CS).
Top 5 Canadian Stocks To Own For 2018: Encana Corporation(ECA)
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Already, shale companies such as Encana (ECA) , Occidental Petroleum (OXY) and Pioneer Natural Resources (PXD) , among others, are reporting higher cash flows and earnings on higher oil prices. As a result, they are paying down debt, increasing dividends and engaging in buybacks. This is a dramatic improvement in shareholder yield for the group.
- [By Matthew DiLallo]
Today, however, many drillers are setting a high bar for new wells. EOG Resources (NYSE:EOG) has been one of the leaders in disrupting the former way of thinking by establishing a high return hurdle rate for new wells of 30% after-tax at $40 oil. Others followed with similar return-focused approaches, including Encana (NYSE:ECA), which needs locations to achieve a 35% after-tax return at $50 oil to meet its premium hurdle rate.
Top 5 Canadian Stocks To Own For 2018: PennyMac Mortgage Investment Trust(PMT)
- [By Stephan Byrd]
Pennymac Mortgage Investment (NYSE:PMT) – Equities researchers at Wedbush lifted their Q1 2019 earnings per share estimates for shares of Pennymac Mortgage Investment in a research note issued to investors on Thursday, May 10th. Wedbush analyst J. Weaver now anticipates that the real estate investment trust will post earnings per share of $0.36 for the quarter, up from their previous estimate of $0.34. Wedbush also issued estimates for Pennymac Mortgage Investment’s Q2 2019 earnings at $0.43 EPS, Q3 2019 earnings at $0.43 EPS, Q4 2019 earnings at $0.52 EPS and FY2019 earnings at $1.74 EPS.