Before the Open March 14 2017

Before the Open March 14 2017

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   bbbsb Overseas/Overnight Markets  U.S.stock index futures fell, taking a cue from European and Asian markets, as worries over global growth prospects and the outcome of Greece’s private-sector bond swap later this week weigh on sentiment. There is no U.S. economic data on the docket today.  European stocks dropped, with banks and resource stocks among the `largest detractors. A report released this morning showed a 0.3% Q/Q contraction in the euro-area economy in Q4, confirming an initial estimate published on February 15. Large declines in investment, exports and consumer spending were to blame for the overall GDP contraction. Also weighing on investors was a memo from the Institute of International Finance that warned that a disorderly default would cause the euro zone more than 1 trillion euros ($1.36 trillion) in damage, Reuters reported. The report also stated that a default would likely force Italy and Spain to seek aid to prevent being engulfed in the region’s debt crisis.  Private investors that have declared their participation in Greece’s debt restructuring hold about 20% of the bonds involved in a swap, the creditors’ stering committee said yesterday. The goal of the swap, which runs through March 8, is to reduce the amount of privately-held Greek debt by 53.5% and help secure Greece’s second rescue package.  Asian stocks fell sharply, with miners among the top declines, following global markets lower on growth concerns. The Hang Seng shed 2.2%, while the Shanghai Composite fell 1.4%. Japan’s Nikkei gave up a more modest 0.6%. North American Market Highlights & Headlines  Aecon Group Inc. (ARE-T) reported a 143% increase in quarterly earnings on Monday as margins improved on lower costs. Aecon reported EPS of $0.49, up from $0.20 a year ago. Revenue in the quarter was $790 million, down from $841 million, and well shy of the $859 million consensus estimate. Aecon's backlog stood at $2.39 billion at December 31, 2011. Futures Market Market Chg Last % Chg S&P 500 -8 2,364 (0.33) NASDAQ -15 5,385 (0.27) Dow Jones -67 20,776 (0.32) Daily Market Summary Market Chg Last % Chg Ytd Chg S&P/TSX 38 15,545 0.25 1.68 Venture 5 805 0.67 5.53 Dow Jones -22 20,881 (0.10) 5.66 S&P 500 1 2,373 0.04 6.01 NASDAQ 14 5,876 0.24 9.15 Global Markets Market Chg Last % Chg Ytd Chg DAX -13 11,977 (0.11) 4.34 FTSE 4 7,371 0.05 3.19 Stoxx 600 -1 374 (0.30) 3.37 Nikkei -24 19,610 (0.12) 2.59 Hang Seng -2 23,828 (0.01) 8.31 Commodities Chg Last % Chg Ytd Chg Gold $1.78 $1,205.85 0.15 4.65 Oil -$0.64 $47.76 (1.34) (13.84) Natural Gas $0.00 $3.04 (0.13) (18.39) F/X Rates CDN$ Buys US$ Buys US$ 0.7413 CDN$ 1.3490 Yen 85.13 Yen 114.84 Euro 0.6972 Euro 0.9405 Bond Yields Market Chg Last % Chg Ytd Chg CAN 3-MO 0.00 0.48 - 4.35 CAN 10-YR -0.02 1.85 (1.07) 7.61 U.S. 3-MO 0.03 0.77 3.45 54.20 U.S. 10-YR -0.02 2.60 (0.83) 6.53 All charts and data are sourced from Bloomberg Finance L.P. This publication is for distribution to Canadian clients only. Please refer to Appendix A of this report for important disclosure information. Overseas and Overnight Markets  U.S. stock index futures are pointing to a lower open as traders await fresh economic data while paying close attention to the Federal Open Market Committee as it begins its two-day meeting today. Many market participants are expecting the Fed to raise rates tomorrow, which would be just the third Fed rate hike in 10 years. On the data front, the National Federation of Independent Business (NFIB) survey results and the Producer Price Index (PPI) data for February are scheduled for release before market open.  Asian markets end the trading day mixed ahead of the Federal Reserve's two-day monetary policy meeting and as European political uncertainty weighed on sentiment. Tokyo's Nikkei Index ended the session with a 0.12% loss. Hong Kong's Hang Seng Index closed 0.01% lower, while Shanghai's Stock Composite Index posted a gain of 0.05%.  European markets are mostly lower in afternoon trade as investors digested political events across the continent and looked ahead to a rate decision by the U.S. Federal Reserve. The pan-European Stoxx 600 is trading approximately 0.25% lower with most sectors in the red. Company Headlines  Tim Hortons franchisees are banding together to push back against their parent company Restaurant Brands International Inc. (QSR-N), or RBI, saying that the cost cutting campaign led by RBI is causing product shortages, declining quality and even safety concerns that are harming the brand. A group of franchisees has formed the Great White North Franchisee Association to represent them in discussions with RBI. The group has set out a series of complaints about how the company is being managed under the direction of 3G Capital, a Brazilian private-equity fund that is the controlling shareholder of RBI.  Billionaire investor William (Bill) Ackman walked away from Valeant Pharmaceuticals International Inc (VRX-T) yesterday, with a roughly US$3 billion loss, after he sold his entire stake in the ailing drug company after trying to rescue it for some 18 months. Ackman’s Pershing Square Capital Management became one of the firm’s biggest investors in 2015 when it sunk roughly US$3.2 billion into the company. Now he walks away with about US$221 million, having sold his entire stake of 18.1 million shares after months of turmoil that have left his fund with two years of double-digit losses and a tarnished reputation.  Canopy Growth Corporation (WEED-T) is being added to the influential S&P/TSX Composite Index in another milestone for Canada’s fledgling marijuana industry. The cannabis producer will be added to the index’s health-care sector prior to the start of trading on March 20, S&P Dow Jones Indices said. It said it will be the first marijuana company to join the index. Big institutional investors and index funds use the index to guide buying decisions, so being included can lead to more demand for a stock. Sources: Marketwatch, Bloomberg, The Canadian Press, WSJ, Globe and Mail, Financial Post, NYT, FactSet,Thomson Reuters, StreetAccount, CNBC, RTT News) March 14, 2017
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  Before the OpenMarch 14, 2017 Page 2 Canadian Equities Upgrades - March 6 Weekly Canada Economic Calendar - March 13 to March 17, 2017 Date/Time Event Period Consensus Actual Prior 03/13/2017 10:00 Bloomberg Nanos Confidence 10-Mar -- 58.2 57.4 03/14/2017 08:30 Teranet/National Bank HPI MoM Feb -- 1.00% 0.50% 03/14/2017 08:30 Teranet/National Bank HP Index Feb -- 202.25 200.34 03/14/2017 08:30 Teranet/National Bank HPI YoY Feb -- 13.40% 13.00% 03/15/2017 09:00 Existing Home Sales MoM Feb -- -- -1.30% 03/16/2017 08:30 Int'l Securities Transactions Jan -- -- 10.23b 03/17/2017 08:30 Manufacturing Sales MoM Jan -0.40% -- 2.30% S&P/TSX Daily Performance 12000 12500 13000 13500 14000 14500 15000 15500 16000 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 Leaders - Prior Session Company Ticker % Change DH Corp DH-T 9.20 Guyana Goldfields Inc GUY-T 7.23 Alacer Gold Corp ASR-T 6.61 Kirkland Lake Gold Ltd KL-T 6.61 Centerra Gold Inc CG-T 5.82 Laggards - Prior Session Company Ticker % Change New Gold Inc NGD-T -3.84 Cott Corp BCB-T -3.81 Ivanhoe Mines Ltd IVN-T -2.61 First Majestic Silver Corp FR-T -2.55 Westshore Terminals Investment CorpWTE-T -2.09 Canadian Equity Upgrades  N/A Canadian Equity Downgrades  Lundin Mining Cut to Equal-Weight at Morgan Stanley Today's Earnings – Canada Alimentation Couche-Tard Inc $0.66, Solium Capital Inc $0.03, Fortuna Silver Mines Inc $0.06, Integra Gold Corp $0.00, Founders Advantage Capital Corp $0.01, Bird Construction Inc $0.13
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  Before the OpenMarch 14, 2017 Page 3 Weekly U.S. Economic Calendar - March 13 to March 17, 2017 Date/Time Event Period Consensus Actual Prior 03/14/2017 06:00 NFIB Small Business Optimism Feb 105.6 105.3 105.9 03/14/2017 08:30 PPI Final Demand MoM Feb 0.10% 0.30% 0.60% 03/14/2017 08:30 PPI Ex Food and Energy MoM Feb 0.20% 0.30% 0.40% 03/14/2017 08:30 PPI Ex Food, Energy, Trade MoM Feb 0.20% 0.30% 0.20% 03/14/2017 08:30 PPI Final Demand YoY Feb 1.90% 2.20% 1.60% 03/14/2017 08:30 PPI Ex Food and Energy YoY Feb 1.50% 1.50% 1.20% 03/14/2017 08:30 PPI Ex Food, Energy, Trade YoY Feb -- 1.80% 1.60% 03/15/2017 07:00 MBA Mortgage Applications 10-Mar -- -- 3.30% 03/15/2017 08:30 Empire Manufacturing Mar 15 -- 18.7 03/15/2017 08:30 CPI MoM Feb 0.00% -- 0.60% 03/15/2017 08:30 CPI Ex Food and Energy MoM Feb 0.20% -- 0.30% 03/15/2017 08:30 CPI YoY Feb 2.70% -- 2.50% 03/15/2017 08:30 CPI Ex Food and Energy YoY Feb 2.20% -- 2.30% 03/15/2017 08:30 CPI Core Index SA Feb 251.109 -- 250.783 03/15/2017 08:30 CPI Index NSA Feb 243.352 -- 242.839 03/15/2017 08:30 Real Avg Weekly Earnings YoY Feb -- -- -0.50% 03/15/2017 08:30 Real Avg Hourly Earning YoY Feb -- -- 0.10% 03/15/2017 08:30 Retail Sales Advance MoM Feb 0.10% -- 0.40% 03/15/2017 08:30 Retail Sales Ex Auto MoM Feb 0.10% -- 0.80% 03/15/2017 08:30 Retail Sales Ex Auto and Gas Feb 0.20% -- 0.70% 03/15/2017 08:30 Retail Sales Control Group Feb 0.20% -- 0.40% 03/15/2017 10:00 NAHB Housing Market Index Mar 65 -- 65 03/15/2017 10:00 Business Inventories Jan 0.30% -- 0.40% 03/15/2017 14:00 FOMC Rate Decision (Upper Bound) 15-Mar 1.00% -- 0.75% 03/15/2017 14:00 FOMC Rate Decision (Lower Bound) 15-Mar 0.75% -- 0.50% 03/15/2017 16:00 Total Net TIC Flows Jan -- -- -$42.8b 03/15/2017 16:00 Net Long-term TIC Flows Jan -- -- -$12.9b 03/16/2017 08:30 Housing Starts Feb 1260k -- 1246k 03/16/2017 08:30 Housing Starts MoM Feb 1.10% -- -2.60% 03/16/2017 08:30 Building Permits Feb 1260k -- 1293k 03/16/2017 08:30 Building Permits MoM Feb -2.60% -- 5.30% 03/16/2017 08:30 Initial Jobless Claims 11-Mar 240k -- 243k 03/16/2017 08:30 Continuing Claims 4-Mar 2053k -- 2058k 03/16/2017 08:30 Philadelphia Fed Business Outlook Mar 28 -- 43.3 03/16/2017 09:45 Bloomberg Consumer Comfort 12-Mar -- -- 50.6 03/16/2017 09:45 Bloomberg Economic Expectations Mar -- -- 50 03/16/2017 10:00 JOLTS Job Openings Jan 5562 -- 5501 03/16/2017 10:00 Revisions: Job Openings and Labor Turnovers 03/17/2017 09:15 Industrial Production MoM Feb 0.20% -- -0.30% 03/17/2017 09:15 Capacity Utilization Feb 75.50% -- 75.30% 03/17/2017 09:15 Manufacturing (SIC) Production Feb 0.40% -- 0.20% 03/17/2017 10:00 U. of Mich. Sentiment Mar P 97 -- 96.3 03/17/2017 10:00 U. of Mich. Current Conditions Mar P 111 -- 111.5 03/17/2017 10:00 U. of Mich. Expectations Mar P 87.1 -- 86.5 03/17/2017 10:00 U. of Mich. 1 Yr Inflation Mar P -- -- 2.70% 03/17/2017 10:00 U. of Mich. 5-10 Yr Inflation Mar P -- -- 2.50% 03/17/2017 10:00 Leading Index Feb 0.40% -- 0.60% S&P 500 Daily Performance 1700 1800 1900 2000 2100 2200 2300 2400 2500 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 Leaders - Prior Session Company Ticker % Change Citrix Systems Inc CTXS-US 6.79 Wynn Resorts Ltd WYNN-US 4.77 Delphi Automotive PLC DLPH-US 4.03 Chesapeake Energy Corp CHK-US 3.50 Transocean Ltd RIG-US 2.85 Laggards - Prior Session Company Ticker % Change Frontier Communications Corp FTR UW -5.24 Urban Outfitters Inc URBN UW -3.81 American Airlines Group Inc AAL UW -3.49 United Continental Holdings IncUAL UN -3.44 Gap Inc/The GPS UN -3.01 U.S. Equity Upgrades  Reliance Steel Raised to Outperform at Macquarie  Disney Raised to Buy at Guggenheim U.S. Equity Downgrades  Abbott Cut to Market Perform at BMO Capital Markets Today's Earnings – U.S. Cobalt International Energy Inc -$0.13, HD Supply Holdings Inc $0.43, Hostess Brands Inc $0.65, Keane Group Inc -$1.75
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  Before the OpenMarch 14, 2017 Page 4 Appendix A - Important Information General Research Disclaimer The statements and statistics contained herein are based on material believed to be reliable, but are not guaranteed to be accurate or complete. This report is for informational purposes only and is not an offer or solicitation with respect to the purchase or sale of any investment fund, security or other product. Particular investment, trading, or tax strategies should be evaluated relative to each individual’s objectives. Graphs and charts are used for illustrative purposes only and do not reflect future values or future performance. This document does not provide individual financial, legal, investment or tax advice. Please consult your own legal, investment and tax advisor. All opinions and other information in this document are subject to change without notice. The Toronto-Dominion Bank and its affiliates and related entities are not liable for any errors or omissions in the information or for any loss or damage suffered. TD Waterhouse Canada Inc. and/or its affiliated persons or companies may hold a position in the securities mentioned, including options, futures and other derivative instruments thereon, and may, as principal or agent, buy or sell such securities. Affiliated persons or companies may also make a market in and participate in an underwriting of such securities. Full disclosures for all companies covered by TD Securities Inc. can be viewed at https://www.tdsresearch.com/equities/welcome.important.disclosure.action Research Ratings Action List BUY: The stock’s total return is expected to exceed a minimum of 15%, on a risk-adjusted basis, over the next 12 months and it is a top pick in the Analyst’s sector. BUY: The stock’s total return is expected to exceed a minimum of 15%, on a risk-adjusted basis, over the next 12 months. SPECULATIVE BUY: The stock’s total return is expected to exceed 30% over the next 12 months; however, there is material event risk associated with the investment that could result in significant loss. HOLD: The stock’s total return is expected to be between 0% and 15%, on a risk-adjusted basis, over the next 12 months. TENDER: Investors are advised to tender their shares to a specific offer for the company’s securities. REDUCE: The stock’s total return is expected to be negative over the next 12 months. Technical Research Disclaimer The opinions expressed herein reflect a technical perspective and may differ from fundamental research on these issuers. Fundamental research can be obtained through your TD Wealth advisor or on the Markets and Research site within WebBroker. The technical research opinions contained in this report are based on historical technical data and expectations of the most likely direction of a market or security. No guarantee of that outcome is ever implied. Research Report Dissemination Policy TD Waterhouse Canada Inc. makes its research products available in electronic format. These research products are posted to our proprietary websites for all eligible clients to access by password and we distribute the information to our sales personnel who then may distribute it to their retail clients under the appropriate circumstances either by email, fax or regular mail. No recipient may pass on to any other person, or reproduce by any means, the information contained in this report without our prior written consent. Analyst Certification The Portfolio Advice and Investment Research analyst(s) responsible for this report hereby certify that (i) the recommendations and technical opinions expressed in the research report accurately reflect the personal views of the analyst(s) about any and all of the securities or issuers discussed herein, and (ii) no part of the research analyst’s compensation was, is, or will be, directly or indirectly, related to the provision of specific recommendations or views expressed by the research analyst in the research report. Conflicts of Interest The Portfolio Advice & Investment Research analyst(s) responsible for this report may own securities of the issuer(s) discussed in this report. As with most other employees, the analyst(s) who prepared this report are compensated based upon (among other factors) the overall profitability of TD Waterhouse Canada Inc. and its affiliates, which includes the overall profitability of investment banking services, however TD Waterhouse Canada Inc. does not compensate its analysts based on specific investment banking transactions.
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  Before the OpenMarch 14, 2017 Page 5 Corporate Disclosure TD Wealth represents the products and services offered by TD Waterhouse Canada Inc. (Member – Canadian Investor Protection Fund), TD Waterhouse Private Investment Counsel Inc., TD Wealth Private Banking (offered by The Toronto-Dominion Bank) and TD Wealth Private Trust (offered by The Canada Trust Company). The Portfolio Advice and Investment Research team is part of TD Waterhouse Canada Inc., a subsidiary of The Toronto-Dominion Bank. Trade-mark Disclosures Bloomberg and Bloomberg.com are trademarks and service marks of Bloomberg Finance L.P., a Delaware limited partnership, or its subsidiaries. All rights reserved. “TD Securities” is the trade name which TD Securities Inc. and TD Securities (USA) LLC. jointly use to market their institutional equity services. TD Securities is a trade-mark of The Toronto-Dominion Bank representing TD Securities Inc., TD Securities (USA) LLC, TD Securities Limited and certain corporate and investment banking activities of The Toronto-Dominion Bank. All trademarks are the property of their respective owners. ® The TD logo and other trade-marks are the property of The Toronto-Dominion Bank. FTSE TMX Global Debt Capital Markets Inc. 2016 "FTSE®" is a trade mark of FTSE International Ltd and is used under licence. "TMX” is a trade mark of TSX Inc. and is used under licence. All rights in the FTSE TMX Global Debt Capital Markets Inc.'s indices and / or FTSE TMX Global Debt Capital Markets Inc.'s ratings vest in FTSE TMX Global Debt Capital Markets Inc. and/or its licensors. Neither FTSE TMX Global Debt Capital Markets Inc. nor its licensors accept any liability for any errors or omissions in such indices and / or ratings or underlying data. No further distribution of FTSE TMX Global Debt Capital Markets Inc.'s data is permitted without FTSE TMX Global Debt Capital Markets Inc.'s express written consent.