Toronto-Dominion Bank (STAR)
Only three more sleeps until the big day! Christmas? No, the start of bank earnings season. Now that Canada’s banking regulator has given financial institutions the green light to resume share buybacks and dividend hikes, investors are expecting some hefty payout increases next week as banks share some of the ginormous earnings they piled up during the pandemic. With TD and other bank stocks rising in anticipation, the Big Six had better deliver some big bags o’ cash or it could be a disappointing holiday season for bank shareholders. Don’t let us down.
Best Buy (DOG)
The flat-screen TVs at Best Buy are a steal – literally. In what has become a costly problem for retailers, brazen gangs of criminals are cleaning out shelves of electronics and other items they later sell online. “You can see that pressure in our financials,” Best Buy chief executive officer Corie Barry said on the third-quarter conference call. Adding to investor nervousness, the retailer forecast that same-store sales in the holiday quarter will be anywhere from down 2 per cent to up 1 per cent, reflecting supply chain disruptions that are causing shortages of certain products. With the stock taking its biggest dive since March, 2020, investors must feel like they just got robbed.
Turkish Lira (in U.S. dollars) (DOG)
As anyone who has taken Economics 101 knows, the best way to fight inflation is to raise interest rates. Too bad Turkish President Recep Tayyip Erdogan skipped that class. Even as inflation is running near 20 per cent in the country, Mr. Erdogan has staunchly defended the rate-cutting policy of the central bank – over which he is seen as exerting control – defying the advice of economists and analysts who called the moves “irrational” and “insane.” With Turkey’s lira plunging to a record low against the U.S. dollar, and Turks facing soaring prices for food and gasoline, Mr. Erdogan’s unorthodox economics experiment isn’t working. Big surprise.
Investors just gave Gap a good slap. Hammered by port congestion and COVID-19-related factory closings, the owner of Gap, Old Navy, Banana Republic and Athleta posted revenue and adjusted earnings well below Wall Street’s expectations, sending the stock down 24.1 per cent on Wednesday – its biggest daily drop on record. And there could be more pain to come: Citing supply chain disruptions and higher spending on air freight to transport merchandise, the company slashed its full-year outlook. I guess that’s what they mean when they say a stock “gapped down.”
Business quiz! Autodesk refers to: a) a fully equipped workstation that fits over the dashboard of most vehicles, allowing people to update spreadsheets, send e-mails and attend video meetings while driving to work; b) a desk that folds itself perfectly flat with the push of a button – ideal for storing under a bed or hanging on a wall in cramped spaces; c) a company that makes 3-D design software for the architecture, engineering and other industries and whose shares sank after its fourth-quarter revenue and earnings forecast was largely below Wall Street’s expectations. Answer: c.
A humorous look at the companies that caught our eye, for better or worse, this week
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