Market View

Fitch Ratings lowered the US credit rating to AA+ from AAA, citing the US debt load and a weakening of governance. The agency also expects the US to enter a recession later this year. This was the first downgrade by a major rating firm in over a decade. Canada’s unemployment rate increased to 5.5% in July, up from 5.4% in June, as population growth outpaced job growth. The Canadian dollar was 74.92 cents USD. The U.S. S&P500 ended the week down 1.4%, while the TSX was down 1.1%.

It was a week of mostly reds. Technology slid by 4.4%, followed by telecommunications at 2.5%. Materials slipped 2.2%, while consumer discretionary gave up 1.7%. Healthcare ended the week flat while energy gained 1.8%. The most heavily traded shares by volume were Baytex Energy, Tourmaline Oil, and Kinross Gold.

5 from 5i

Here are five reads we found interesting last week:

• Lessons from the startling statistics of 2023’s stock market, published by Allan Roth of etf.com
• Business cycle indicators, at the beginning of August, by Menzie Chinn of Econbrowser
• The economic perception model, authored by Kyla Scanlon of Epsilon Theory
• Share buybacks get the boot as corporate America reinvests in itself, by Lu Wang of VettaFi
• As some consumer tailwinds fade, new ones emerge, posted on TKer by Sam Ro

Happy Reading & Stay Safe!

Disclosure: The analyst(s) responsible for this report do not have a financial or other interest in securities mentioned.