INVESTMENT STRATEGY GROUP

MARKET BEAT

Friday, November 06, 2020

MACRO VIEW Market Indicators

The TSX (+0.1%) made up earlier losses, while Wall Street's main indices Index Level* Change YTD YTD (C$) are trading in the red as investors wait for election results. Counting S&P/TSX 16,309.33 0.07% -4.4% -4.4% continues in several states, with Biden inching closer towards the S&P 500 3,502.58 -0.22% 8.4% 8.9% NASDAQ 11,833.09 -0.49% 31.9% 32.5% presidency. Texas Intermediate crude oil (-1.8%) is trading lower, weighed down by demand concerns, as pandemic restrictions spread to Dow Jones 28,310.02 -0.28% -0.8% -0.4% an increasing number of countries. The U.S. dollar dropped to its lowest Nikkei 225 24,325.23 0.91% 2.8% 8.4% point in over two months, while Gold (+0.1%) prices were flat. North Euro Stoxx 50 3,219.53 0.12% -14.0% -8.6% American bond yields inched up, with the U.S. 10-year at 0.83%, and the FTSE EM 2,456.85 0.58% 6.3% 6.8% Canadian 10-year at 0.66%. The Canadian dollar continued to strengthen against the greenback. Canadian Market Movers

Employment in increased by 83,600 in October versus WEED Co 7.8%

50,000 estimated by economists. Canadian unemployment fell to 8.9% in OTEX Open Text Corp 4.9% October from 9.0% in September, slightly beating expectations. TECK/B -B 4.4% October’s job gains were primarily full-time work, with reports coming MG Magna Intl 4.0% in at 69,000 full-time jobs added. The U.S. reported better-than- T Corp 3.4% expected labour data for October, with non-farm payrolls increasing by SHOP Inc -1.7% 638,000, surpassing estimates of 575,000. The unemployment rate ABX Crp -1.8% decreased to 6.9% from 7.9%, versus a forecast of 7.7%. DOL Inc -2.3% CANADIAN MARKETS GIL Activewea -2.4% PPL -3.8% Telus (T, +3.4%) reported Q3 revenue of $3.98 billion which was 4% ahead of consensus while adjusted EBITDA of $1.46 billion was in-line *As of November 6 2020 10:34 AM. Source: Bloomberg with consensus at $1.45 billion. Mobile phone net additions of 111,000 were ahead of the street at 84,400. The quarterly dividend was raised U.S. Market Movers by 7%. Telus’ International segment, which is 62% owned by Telus, is CVS Cvs Health Corp 5.2% buying Lionbridge AI, a provider of crowd-based training data and AIG American Interna 4.9% annotation platform solutions used in AI algorithm development, for DHR Danaher Corp 2.1% $1.2 billion. TMO Thermo Fisher 2.0% GM General Motors C 1.9% (ENB, -0.5%) reported adjusted EBITDA of $3 billion vs. the street at $3.14 billion, while distributable cash flow (DCF) per share of AAPL Apple Inc -1.6%

$1.03 came in slightly ahead of consensus of $0.99. The company AMZN Amazon.Com Inc -1.7% announced new ESG targets, including a 35% reduction in energy ADBE Adobe Inc -1.7% intensity by 2030 and net-zero by 2050, and also announced diversity PYPL Paypal Holdings -1.8% and inclusion goals. UNH Unitedhealth Grp -2.4% Pembina (PPL, -3.8%) reported adjusted EBITDA of $796 million vs. *As of November 6 2020 10:34 AM. Source: Bloomberg consensus of $802 million, while DCF/share was $0.95 vs. consensus of

$1.00. It reduced the top-end of its 2020 guidance range for adjusted Benchmark Bonds & Rates EBITDA by $0.25 billion to $3.25 billion to $3.30 billion. Chg1 Yld1 Dec-202 Mar-212 Magna (MG, +4.0%) reported revenue of US$9.13 billion vs. consensus of CA 2YR 0.01% 0.26% 0.35% 0.35% US$9.03 billion. Adjusted EBIT of US$778 million was well ahead of CA 10YR 0.05% 0.66% 0.70% 0.80% consensus of US$549 million. It has raised its 2020 outlook for total sales US 2YR 0.01% 0.15% 0.25% 0.30% and adjusted EBIT margin. US 10YR 0.07% 0.83% 0.80% 1.00%

Open Text (OTEX, +4.9%) posted revenue of US$804 million, 5% ahead Rate1 Dec-202 Mar-212 of consensus, driven by strong cloud growth. Adjusted EBITDA margin of CA Prime 2.45% - - 43% was 5.9% above consensus given the earlier-than-expected CA Overnight Tgt 0.25% 0.25% 0.25% completion of the Carbonite integration. It raised its dividend by 15% Fed Funds Tgt 0.25% 0.13% 0.13%

1 - As of November 6 2020 10:34 AM.; 2 - CIBC forecasts. Source: Bloomberg CIBC PRIVATE WEALTH MANAGEMENT INVESTMENT STRATEGY GROUP 1 Market Beat

Currencies & Commodities and put a US$350 million share buy-back program in place. Price* Change YTD Intact Financial (IFC, +1.1%) and Tryg (TRYG, +3.5%) have made a £7.2 C$/US$ 0.766 0.000 -0.4% billion takeover proposal to acquire RSA Insurance (RSA, -2.6%). Intact US$/€ 0.842 0.005 -5.6% would pay £3 billion for RSA's Canada and UK & International operations, Gold $1,944.69 -$4.97 28.2% Tryg would pay £4.2 billion for RSA's Sweden and Norway operations, Copper per 100 lb $316.10 $5.10 11.9% and both the companies would co-own RSA's Denmark operations. Oil (WTI) $37.82 -$0.97 -38.1% Ritchie Bros (RBA, +7.0%) announced Q3/20 adjusted EBITDA of US$91.9 Oil (WCS) $28.39 -$0.30 -26.4% million way ahead of consensus at US$70.5 million. Gross transaction Natural Gas (NYMEX) $2.91 -$0.03 33.0% value (GTV) stood at US$1.32 billion, up 22% year-over-year (Y/Y). Natural Gas (AECO) $2.22 $0.00 29.8% *As of November 6 2020 10:34 AM. Source: Bloomberg Jamieson Wellness (JWEL, +6.6%) announced Q3/20 adjusted EBITDA of US$22.9 million, slightly above consensus of US$22.1 million and up 18.2% Y.Y. JWEL generated revenue of US$105.6 million, up 19.2% Y/Y, Equity Indices YTD and raised their guidance for adjusted EBITDA and adjusted EPS. 120 110 U.S. MARKETS 100 Coty (COTY, +14.5%) released Q1/2021 EPS and revenue that both 90 80 exceeded forecasts. Coty’s earnings advanced with increasing online sales. 70 Hershey (HSY, +2.5%) reported Q3/2020 EPS that beat estimates, and 60

revenue that was above forecasts. With more consumers working from

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T-Mobile (TMUS, +6.1%) released Q3/2020 EPS that was more than double estimates and revenue that topped forecasts. T-Mobile also more Earnings Releases

than doubled forecasts for customer additions in Q3. Name Date Est. Act. Cvs Health Corp (CVS) 11/06 $1.33 $1.66 * Square (SQ, +11.1%) reported Q3/2020 EPS that topped estimates by Enbridge Inc (ENB) 11/06 $0.52 $0.48 50%, and revenue exceeded forecasts. The revenue increase was helped by a rebound in payment volumes. Marriott Intl-A (MAR) 11/06 -$0.08 $0.06 * Hershey Co/The (HSY) 11/06 $1.73 $1.86 * Roku (ROKU, +11.3%) released Q3/2020 EPS profit, beating an expected Telus Corp (T) 11/06 $0.31 $0.28

loss and revenue well above forecasts. Roko saw an increase of 43% in Zimmer Biomet Ho (ZBH) 11/06 $1.07 $1.81 * its active accounts as more consumers bought streaming video devices. Magna Intl (MG) 11/06 $1.38 $1.95 * Zillow (ZG, +14.5%) reported Q3/2020 EPS that tripled the consensus Viacomcbs Inc-B (VIAC) 11/06 $0.81 $0.91 *

estimate, and revenue beat expectations. Zillow reported the largest Brookfield Prope (BPY-U) 11/06 $0.00 $0.11 * ever unadjusted profit for the company for the first time in three years. Hydro One Ltd (H) 11/06 $0.43 $0.47 Ventas Inc (VTR) 11/06 $0.72 $0.75 * Peloton (PTON, +4.3%) released Q1/2021 EPS that well beat expectations and revenue beat forecasts. The company warned of Dish Network-A (DISH) 11/06 $0.64 $0.86 * possible supply limitations due to that heavy demand but raised its Aes Corp (AES) 11/06 $0.43 $0.42 * revenue outlook for fiscal 2021. Source: Bloomberg * = USD

Economic Calendar - Canada Economic Calendar - U.S. Day Release Prior Est. Actual Day Release Prior Est. Actual 11/6 Net Change in Employment (Oct) 378.2k 75.0k 83.6k 11/6 Change in Nonfarm Payrolls (Oct) 661k 580k 638k 11/6 Full Time Employment Change (Oct) 334 -- 69.1 11/6 Two-Month Payroll Net Revision (Oct) -- -- 15k 11/6 Part Time Employment Change (Oct) 44.2 -- 14.5 11/6 Change in Private Payrolls (Oct) 877k 680k 906k 11/6 Unemployment Rate (Oct) 9.00% 9.00% 8.90% 11/6 Change in Manufact. Payrolls (Oct) 66k 55k 38k 11/6 Hourly Wage Rate Permanent Employees YoY5.40% (Oct) 5.40% 5.20% 11/6 Unemployment Rate (Oct) 7.90% 7.60% 6.90% 11/6 Participation Rate (Oct) 65.00% 65.00% 65.20% 11/6 Average Hourly Earnings MoM (Oct) 0.10% 0.20% 0.10% 11/6 Ivey Purchasing Managers Index SA (Oct) 54.3 -- 54.5 11/6 Average Hourly Earnings YoY (Oct) 4.70% 4.50% 4.50% 11/9 Bloomberg Nanos Confidence 52.5 -- -- 11/6 Average Weekly Hours All Employees (Oct) 34.7 34.7 34.8 11/16 Bloomberg Nanos Confidence ------11/6 Labor Force Participation Rate (Oct) 61.40% 61.50% 61.70% 11/16 Manufacturing Sales MoM (Sep) -2.00% -- -- 11/6 Underemployment Rate (Oct) 12.80% -- 12.10% 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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(2a, 2c, 2e, 2g, 7) (ENB-TSX, C$37.12) Pembina Pipeline Corporation (2a, 2c, 2e, 2g, 7) (PPL-TSX, C$28.58) Inc. (2a, 2c, 2g, 7) (MGA-NYSE, US$55.38) Open Text Corporation (2g, 9) (OTEX-NASDAQ, US$39.20) Intact Financial Corp. (2a, 2c, 2e, 2g, 7) (IFC-TSX, C$145.05) Ritchie Bros. Auctioneers Inc. (2g) (RBA-NYSE, C$68.44) Paramount Resources Ltd. (2g, 6b) (POU-TSX, C$2.42) Brookfield Property Partners LP (2g, 7) (BPY-NASDAQ, US$14.76) Artis Real Estate Investment Trust (2a, 2e, 2g) (AX.UN-TSX, C$8.91) Ballard Power Systems, Inc. (2g) (BLDP-NASDAQ, US$16.67) Jamieson Wellness Inc. (2g) (JWEL-TSX, C$40.56) ARC Resources Ltd. (2g, 7) (ARX-TSX, C$6.94)

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