INVESTMENT STRATEGY GROUP

MARKET BEAT

Wednesday, January 06, 2021

MACRO VIEW Market Indicators Index Level* Change YTD YTD (C$) The TSX (+0.7%) and Wall Street's main indices are gaining on the back S&P/TSX 17,801.06 0.67% 2.1% 2.1% of the rising energy sector while traders watch the U.S. Senate re- S&P 500 3,747.83 0.56% -0.2% -0.6% election. West Texas Intermediate crude oil (+0.0%) prices steadied NASDAQ 12,806.73 -0.10% -0.6% -1.0% near a 10-month high after Saudi Arabia pledged to cut output. Gold (- Dow Jones 30,758.99 1.21% 0.5% 0.1% 1.2% ) prices slid as focus turns to the Georgia Senate run-off elections. Nikkei 225 27,055.94 -0.38% -1.4% -1.8% North American bond yields continue edging up in morning trade with Euro Stoxx 50 3,609.35 1.73% 1.6% 2.0% the U.S. 10-year at 1.05% and the Canadian 10-year at 0.78%. The FTSE EM 2,726.34 0.21% 2.1% 1.7% Canadian dollar fell against the greenback, pulling back from a near three -year high as markets priced in a Democrat in the Senate run-off Canadian Market Movers elections . WEED Canopy Growth Co 13.7% U.S. private businesses unexpectedly laid off 123,000 workers in December of 2020, compared to market forecasts of an increase of BHC Bausch Health Co 3.7%

88,000. It is the first decline in private-sector employment since April. TECK/B Teck Resources-B 3.6% U.S. factory orders rose for the seventh straight month by 1% in NTR Nutrien Ltd 2.8% November versus 0.7% expected. SLF Sun Life Financi 2.8% FNV Franco-Nevada Co -0.6%

CANADIAN MARKETS ATD/B Alimen Couche -0.7%

KL Kirkland Lake Go -1.2% Dye & Durham (DND, -7.9%) announced an approximately $175 million DOL Dollarama Inc -1.5% secondary offering at $42.75 per share for an aggregate of 4.1 million SHOP Shopify Inc -2.7% common shares on a bought deal basis. *As of January 6 2021 10:30 AM. Source: Bloomberg GDI Integrated Facility Services (GDI, +4.6%) announced that its U.S. subsidiary Ainsworth Inc. has acquired New York-based mechanical U.S. Market Movers service provider, The BPAC Group Inc. for an undisclosed amount. GDI WFC Wells Fargo & Co 6.6% noted the business has generated US$110 million in revenue in the BAC Bank Of America 6.6% recent fiscal year. MET Metlife Inc 6.4% Boardwa lk REIT (BEI.UN, -0.5%) provided a Q4/20 operational update. C Citigroup Inc 6.1% BK Bank Ny Mellon 6.0% Its portfolio occupancy stood at 94.9% as of the beginning of January 2021, down from 95.2% in the previous month. Revenue collection at NFLX Netflix Inc -2.4% the end of December 2020 was 98.5%. BEI will release its Q4/20 PYPL Paypal Holdings -2.5% f inancial results after the market closes on February 25, 2021. NVDA Nvidia Corp -2.8% Profound Medical (PRN, +8.8%) reported preliminary Q4/20 revenue of KO Cocaola Co/The -3.0% about US$3.7 million beating consensus of US$2.1 million and up 24% ADBE Adobe Inc -3.3% quarter -over-quarter (Q/Q). For the full year 2020, PRN expects total *As of January 6 2021 10:30 AM. Source: Bloomberg revenue to be approximately US$9.7 million, compares to US$5.5 million in 2019. Benchmark Bonds & Rates

Spartan Delta (SDE, +8.2%) noted average production in Q4/20 was Chg1 Yld1 Mar-212 Jun-212 approximately 26,000 barrels of oil equivalent (boe) per day, ahead of CA 2YR 0.00% 0.19% 0.35% 0.40% guidance and consensus. Spartan has recently closed one acquisition and CA 10YR 0.06% 0.78% 0.80% 0.85% is expected to close two more strategic acquisitions around January 15, US 2YR 0.02% 0.14% 0.30% 0.30% 2021. The company also revised its 2021 production guidance estimates US 10YR 0.09% 1.05% 1.00% 1.10% to a range of 29,000 to 31,000 boe per day versus the prior guidance of 1 2 2 Rate Mar-21 Jun-21 27,000 to 29,000 boe per day. CA Prime 2.45% - - CA Overnight Tgt 0.25% 0.25% 0.25% Fed Funds Tgt 0.25% 0.13% 0.13%

1 - As of January 6 2021 10:30 AM.; 2 - CIBC forecasts. Source: Bloomberg CIBC PRIVATE WEALTH MANAGEMENT INVESTMENT STRATEGY GROUP 1 Market Beat

Currencies & Commodities

U.S. MARKETS Price* Change YTD C$/US$ 0.789 0.001 0.4% Medical insurance company UnitedHealth (UNH, +0.4%) announced the US$/€ 0.812 0.001 -0.8% purchase of Change Healthcare (CHNG, +30.5%) for US$7.84 billion. Gold $1,924.15 -$25.86 1.4% Under the all-cash deal, UnitedHealth will pay US$25.75 for each share Copper per 100 lb $365.30 $1.35 3.8% of Change Healthcare, a 41% premium to its prior-day closing price. Oil (WTI) $49.98 $0.05 3.0% Oil (WCS) $35.02 $0.39 5.6% Walgreens (WBA, +2.7%) is selling its pharmaceutical wholesale Natural Gas (NYMEX) $2.70 -$0.01 6.2% business, Alliance Healthcare, for US$6.5 billion. Pharmaceutical Natural Gas (AECO) $2.12 $0.03 8.7% distributor AmerisourceBergen (ABC, +7.8%) is purchasing Alliance with *As of January 6 2021 10:30 AM. Source: Bloomberg a combination of cash and stock. PPG Industries (PPG, +2.5%) will be acquiring Finland-based paint Equity Indices Since Jan 2020 producer Tikkurila in a sweetened takeover deal. PPG Industries will 120 purchase Tikkurila for US$1.52 billion, an 11% increase to its initial 110 offer. 100 Real estate data provider CoStar Group (CSGP, +1.3%) is suing rival 90 RentPath for US$587.5 million following a failed takeover bid. CoStar 80 Group has accused RentPath of sabotaging its acquisition, stating that 70 RentPath employees warned clients that prices would increase if the acquisition went through. 60

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Cal-Maine Foods (CALM, +6.4%) reported Q2/2021 EPS of US$0.25, well May 31 ahead of the consensus loss of US$0.08 per share. Revenue came in S&P/TSX Dow Jones S&P500 ahead of analysts’ projections at US$347.3 million. The food producer pointed towards an increase in at-home food preparation related to the pandemic as a driver of better-than-expected performance. Earnings Releases Name Date Est. Act.

Micron Tech (MU) 01/07 $0.67 -- * Constellation-A (STZ) 01/07 $2.41 -- * Walgreens Boots (WBA) 01/07 $1.03 -- * Conagra Brands I (CAG) 01/07 $0.74 -- * Lamb Weston (LW) 01/07 $0.62 -- *

Corus Ent Inc-B (CJR/B) 01/12 $0.29 -- Ihs Markit Ltd (INFO) 01/13 $0.67 -- * Shaw Comm-B (SJR/B) 01/13 $0.32 --

Aritzia Inc-Sub (ATZ) 01/13 $0.23 -- Blackrock Inc (BLK) 01/14 $8.68 -- * First Republic B (FRC) 01/14 $1.50 -- *

Delta Air Li (DAL) 01/14 -$2.39 -- * Cogeco Communica (CCA) 01/14 $1.94 -- Source: Bloomberg * = USD Economic Calendar - Canada Economic Calendar - U.S. Day Release Prior Est. Actual Day Release Prior Est. Actual 1/6 MLI Leading Indicator MoM (Nov) 2.70% -- 1.40% 1/6 MBA Mortgage Applications -5.80% -- 1.70% 1/7 Int'l Merchandise Trade (Nov) -3.76b -3.50b -- 1/6 ADP Employment Change (Dec) 307k 75k -123k 1/7 Ivey Purchasing Managers Index SA (Dec) 52.7 -- -- 1/6 Markit US Services PMI (Dec F) 55.3 55.2 54.8 1/8 Net Change in Employment (Dec) 62.1k -30.0k -- 1/6 Markit US Composite PMI (Dec F) 55.7 -- 55.3 1/8 Full Time Employment Change (Dec) 99.4 -- -- 1/6 Factory Orders (Nov) 1.00% 0.70% 1.00% 1/8 Part Time Employment Change (Dec) -37.4 -- -- 1/6 Factory Orders Ex Trans (Nov) 1.00% -- 0.80% 1/8 Unemployment Rate (Dec) 8.50% 8.70% -- 1/6 Durable Goods Orders (Nov F) 0.90% 0.90% 1.00% 1/8 Hourly Wage Rate Permanent Employees YoY4.80% (Dec) 5.00% -- 1/6 Durables Ex Transportation (Nov F) 0.40% 0.40% 0.40% 1/8 Participation Rate (Dec) 65.10% 65.00% -- 1/6 Cap Goods Orders Nondef Ex Air (Nov F) 0.40% -- 0.50% 1/11 Bloomberg Nanos Confidence 56 -- -- 1/6 Cap Goods Ship Nondef Ex Air (Nov F) 0.40% -- 0.50% Source: Bloomberg Source: Bloomberg BRAD BROWN, CFA - SR. MANAGER, EQUITIES PUJA GHOSH, CFA, MBA, MSC. – ASSOCIATE LAUREN ELLISON, CIM, CFP – ASSOCIATE JOHNNY TAM, MASC, CFA - ASSOCIATE ALLAN BISHOP - DIRECTOR, FIXED INCOME ANKUR JAIN – ASSOCIATE

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IMPORTANT DISCLOSURES

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(2g, 12) (GDI-TSX, C$43.50)

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4a This company is a client for which a CIBC World Markets company has performed non-investment banking, non-securities-related services in the past 12 months. 4b CIBC World Markets Corp. has received compensation for non-investment banking, non-securities-related services from this company in the past 12 months. 4c CIBC World Markets Inc. has received compensation for non-investment banking, non-securities-related services from this company in the past 12 months. 5a The CIBC World Markets Corp. analyst(s) who covers this company also has a long position in its common equity securities. 5b A member of the household of a CIBC World Markets Corp. research analyst who covers this company has a long position in the common equity securities of this company. 6a The CIBC World Markets Inc. fundamental analyst(s) who covers this company also has a long position in its common equity securities. 6b A member of the household of a CIBC World Markets Inc. fundamental research analyst who covers this company has a long position in the common equity securities of this company. 6c One or more members of Investment Strategy Group who was involved in the preparation of this report, and/or a member of their household(s), has a long position in the common equity securities of this company. 7 CIBC World Markets Corp., CIBC World Markets Inc., and their affiliates, in the aggregate, beneficially own 1% or more of a class of equity securities issued by this company. 8 A partner, director or officer of CIBC World Markets Inc. or any analyst involved in the preparation of this research report has provided services to this company for remuneration in the past 12 months. 9 A senior executive member or director of Canadian Imperial Bank of Commerce ("CIBC"), the parent company to CIBC World Markets Inc. and CIBC World Markets Corp., or a member of his/her household is an officer, director or advisory board member of this company or one of its subsidiaries. 10 Canadian Imperial Bank of Commerce ("CIBC"), the parent company to CIBC World Markets Inc. and CIBC World Markets Corp., has a significant credit relationship with this company. 11 The equity securities of this company are restricted voting shares. 12 The equity securities of this company are subordinate voting shares. 13 The equity securities of this company are non-voting shares. 14 The equity securities of this company are limited voting shares.

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