MID-DAY: Strong earnings outweighing tensions over rising treasury yields; Toys ‘R’ Us Canada to be bought by FairFax
Strong earnings reports are outweighing worries over high bond yields in the US. On Wall Street the Dow is steady at 24,447. On Bay Street, the TSX is up to 15,544 thanks to a boost from the financial sector. Analysts say as more positive earnings reports come in from big businesses, investors seem to be distracted from the record spike in US Treasury yields closing in on a four year high.
However, while most businesses are reporting better than expected earnings, Hasbro has come in below expectations. Shares for the toy-maker dropped 4 per cent with executives blaming the negative impact on the liquidation of Toys ‘R’ Us in the US. Across the border, Toys ‘R’ Us Canada has been sold to Fairfax Financial for a reported $300 million, although the deal is still waiting for court approval.
Oil is coming off of a rally last week, dipping to 67.54 and the Loonie is sliding further to 77.93 cents US.
Canadian online gambling company Stars Group, based out of Toronto, is reportedly spending $4.7 billion on UK-based Sky Betting and Gaming. Reports say the deal will make it the biggest publicly-listed online gambling business in the world.