SCOTIA WEALTH MANAGEMENT Midday Update  May 11, 2021

Featured in this report

Midday market performance update Canadian equities: U.S. equities: International equities: < Market summary < Market summary < Market summary < Companies in the news: WN < Companies in the news: PLTR, TSLA < Company in the news: SKM

Midday market performance update

Intraday returns

S&P 500 NASDAQ S&P/TSX Index Stoxx Europe 600 Nikkei 225 Shanghai Comp 4,149 13,332 19,205 436 28,609 3,442 -1.0% -0.5% -0.8% -2.1% -3.1% 0.4%

Canada 10-year yield U.S. 10-year yield 1.54% 1.62% Low High Low High 0.43 1.68 0.5 1.77

CA D/USD USD (trade-weighted) $0.83 101.96 Low High Low High 0.7 0.83 101.96 114.16

Gold WTI (oil) $1832.08 $65.13 Low High Low High 1659.55 2075.47 29.09 67.29

Bar charts display current values relative to 52-week ranges.

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Canadian equities

< Canadian equities, as measured by the S&P/TSX Composite Index, are S&P/TSX Composite Index Intraday (12:00 PM) Level Pts Chg % Chg trading lower at midday. 19,205 -157.2 -0.8% < Nine of the index’s eleven sectors are lower, with the Consumer 21,000 1,250 19,000 1,000 Discretionary sector seeing the largest losses. 17,000 750

15,000 500 S&P/TSX biggest movers 13,000 250

Last price %∆ 11,000 0 Aurinia Pharmaceuticals Inc 13.18 9.2% 9.2% May Aug Nov Feb May Centerra Gold Inc 8.88 7.6% 7.6% Ballard Power Systems Inc 17.94 3.1% 3.1% Issues Novagold Resources Inc 11.60 2.6% 2.6% < Advancing 34 < Declining 179 Seabridge Gold Inc 21.67 1.8% 1.8% < Unchanged 1 Gildan Activewear Inc 41.44 -4.7% 4.7% Index stats: Methanex Corp 45.27 -4.4% 4.4% < 1-yr return 27.2% Meg Energy Corp 6.73 -3.9% 3.9% < P/E 24.3x < Dividend yield 2.8% Canada Goose Holdings Inc 50.51 -3.8% 3.8%

Altus Group Ltd/Canada 56.91 -3.7% 3.7%

In corporate news:

George Weston Limited (WN)

< George Weston reported mixed Q1/21 results that missed on the top line but beat on the bottom. Revenue of C$12.35 billion missed Bloomberg consensus estimate of C$12.53 billion, while adjusted EPS of C$1.59 beat Bloomberg consensus estimate of C$1.56. Revenue increased mainly due to higher sales at , as it reported higher same-store sales growth. This was partially offset by the decline in sales at Weston Foods, which was driven by the impact of COVID-19. Operating income grew 38.8%, given favourable impact of adjusted items totaling $208 million, and the improvement in underlying operating performance. The company incurred COVID-19 related costs of approximately $54 million in the Q1/21, primarily related to safety and security measures to protect colleagues, customers, tenants, and other stakeholders. WN shares are trading lower at midday.

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U.S. equities

< U.S. equities, as measured by the S&P 500 Index, are trading lower at S&P500 Index Intraday (12:00 PM) Level Pts Chg % Chg midday as selling pressure on higher growth technology shares spilled 4,149 -39.9 -1.0%

over to rest of the market. 4,500 2,500

< All of the index’s eleven sectors are trading lower, with the Energy sector 4,000 2,000 down ~1.8%. 3,500 1,500 3,000 1,000 S&P 500 biggest movers 2,500 500 Last price % 2,000 0 ∆ May Aug Nov Feb Nortonlifelock Inc 22.88 8.5% 8.5%

Servicenow Inc 484.36 3.8% 3.8% Issues Perrigo Co Plc 44.51 3.2% 3.2% < Advancing 69 < Declining 435 Dexcom Inc 353.28 3.1% 3.1% < Unchanged 0 Paycom Software Inc 324.68 2.4% 2.4% Index stats: Hanesbrands Inc 18.72 -14.5% 14.5% < 1-yr return 41.6% Pioneer Natural Resources Co 156.49 -6.6% 6.6% < P/E 29.8x < Dividend yield 1.4% Occidental Petroleum Corp 24.98 -6.2% 6.2% Caesars Entertainment Inc 98.97 -5.5% 5.5% Dr Horton Inc 99.30 -4.9% 4.9%

In corporate news:

Palantir Technologies Inc. (PLTR)

< PLTR, a data analytics software developer, reported mixed Q1/21 results. Revenue of US$341.2 million and adjusted EPS of US$0.04 were above Bloomberg consensus estimates of US$332.5 million and US$0.035, respectively. However, GAAP EPS of -US$0.07 was lower than the -US$0.05 expected by analysts as stock- based compensation more than tripled y/y. Revenue increased 49% y/y, driven by new customers such as Pacific Gas and Electric Co. and the U.S. National Nuclear Security Administration, along with expanded agreements with existing customers such as 3M Co. and BP Plc. Adjusted free cash flow grew by US$441 million y/y to US$151 million. PLTR provided Q2/21 guidance for US$360 million in revenue and reiterated its long- term outlook. PLTR continues to see annual revenue growth of 30% or greater for 2021 through 2025.

Tesla Inc. (TLSA)

< According to a Reuters report, TSLA halted its plans to buy additional land in Shanghai to expand its manufacturing plant and turn it into a worldwide export hub because of trade tensions between China and the U.S. The report said that TSLA now plans to restrict the proportion of its global production made in China. The 25% tariffs on electric cars imported from China, imposed under former U.S. President Donald Trump, were cited as one of the reasons. The California-based carmaker had been considering exporting Shanghai- made Model 3s to more overseas markets including the U.S. China’s Passenger Car Association (PCA) also released TSLA’s car sales in China last month, which dropped to 25,845 locally made vehicles in April, from 35,478 in March. Additionally, 14,174 EVs were exported from the Shanghai gigafactory in April, in part due to demand from the European market, PCA said. PCA did not release export data for March or February. Shares of TSLA are trading lower at midday.

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International equities

< European equities, as measured by the Stoxx Europe 600 Index, ended Stoxx Europe 600 Index (Market Closed) Level Pts Chg % Chg the day lower, dragged down by travel and leisure shares. 436 -9.3 -2.1% < All of the index’s twenty sectors ended the day lower, with the Travel & 500 8,000

Leisure sector down ~5.7%. 450 6,000 400 4,000 Stoxx Europe 600 biggest movers 350 2,000 Last price %∆ 300 Thg Plc 665.50 11.7% 11.7% 250 0 May Aug Nov Feb Dino Polska Sa 273.40 6.6% 6.6%

Powszechny Zaklad Ubezpieczen Sa 35.19 4.2% 4.2% Issues Glanbia Plc 13.86 2.3% 2.3% < Advancing 30 < Declining 566 Swedish Orphan Biovitrum Ab 141.60 2.1% 2.1% < Unchanged 3 Evolution Gaming Group Ab 1,366.60 -13.8% 13.8% Thyssenkrupp Ag 10.56 -9.5% 9.5% Index stats: < 1-yr return 28.4% International Consolidated Airlines Group Sa 194.62 -7.3% 7.3% < P/E 38.0x Powszechna Kasa Oszczednosci Bank Polski Sa 34.50 -7.2% 7.2% < Dividend yield 2.9% Ambu A/S 301.10 -7.2% 7.2%

In corporate news:

SK Telecom Co. Ltd. (SKM)

< SK Telecom reported Q1/21 results that exceeded consensus estimates. Revenue was slightly above consensus, but operating profit beat, driven by operating leverage in 5G data services and improved earnings in the Media and Commerce segments. Adjusted EPS was ~66% above consensus, due to strong results at the semiconductor company SK Hynix, in which SK Telecom owns a 20% interest. Mobile services revenue, which makes up 66% of total revenue, was up ~2.0% y/y as growth in 5G subscribers (1.26mm net adds) was partially offset by a decline in LTE subscribers (0.93mm net losses). The Media division, which now accounts for 21% of revenues, continued to post strong growth, with revenue up 18% y/y. Operating margins within the Media division increased to 7.8%, up 320 bps y/y, driven by robust IPTV net adds of 125k. SKM’s Security and Commerce divisions, which account for 8% and 5% of revenues, respectively, reported growth of 20% and 7% y/y, which also helped margin expansion. SKM reiterated its FY2021 revenue outlook for ₩19.5 trillion, in-line with consensus and up 4.7% y/y. This guidance is largely driven by growth of SKM’s 5G subscriber base, which is expected to be 9+ million by the end of this year, up from ~6.7 million currently. SKM shares are trading higher at midday.

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