SCOTIA WEALTH MANAGEMENT Midday Update June 9, 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: DOL < Companies in the news: CPB, UPS < Company in the news: AGC Midday market performance update Intraday returns S&P 500 NASDAQ S&P/TSX Index Stoxx Europe 600 Nikkei 225 Shanghai Comp 4,233 13,954 20,005 455 28,861 3,591 0.1% 0.2% -0.3% 0.1% -0.4% 0.3% Canada 10-year yield U.S. 10-year yield 1.43% 1.5% Low High Low High 0.43 1.68 0.5 1.77 CAD/USD USD (trade-weighted) $0.83 101.82 Low High Low High 0.7 0.83 101.44 111.04 Gold WTI (oil) $1892.6 $69.99 Low High Low High 1659.55 2075.47 29.09 67.29 Bar charts display current values relative to 52-week ranges. SCOTIA WEALTH MANAGEMENT Canadian equities S&P/TSX Composite Index Intraday (12:00 PM) < Canadian equities, as measured by the S&P/TSX Composite Index, are Level Pts Chg % Chg trading lower at midday. 20,005 -61.1 -0.3% 21,000 1,250 < Eight of the index’s eleven sectors are lower, with the Consumer Staples 19,000 1,000 sector seeing the largest losses. 17,000 750 15,000 500 S&P/TSX biggest movers 13,000 250 11,000 0 Last price %∆ Jun Sep Dec Mar Jun Transcontinental Inc 24.12 7.6% 7.6% Canfor Corp 27.50 5.3% 5.3% Issues Aurora Cannabis Inc 12.75 5.1% 5.1% < Advancing 93 < Declining 117 Cronos Group Inc 11.34 4.5% 4.5% < Unchanged 3 Interfor Corp 28.91 4.3% 4.3% Index stats: Blackberry Ltd 18.32 -4.1% 4.1% < 1-yr return 26.3% < P/E 23.0x First Quantum Minerals Ltd 28.14 -2.8% 2.8% < Dividend yield 2.6% Lightspeed Pos Inc 87.43 -2.3% 2.3% Maple Leaf Foods Inc 25.82 -2.2% 2.2% Telus Corp 27.44 -2.0% 2.0% In corporate news: Dollarama Inc. (DOL) < Dollarama reported weaker-than-expected Q1/22 that missed on both the top and bottom lines as efforts to curb the Covid-19 pandemic impacted results. Revenue of US$954.23 million and adjusted EPS of US$0.36 missed Bloomberg consensus estimates of US$965.70 million and US$0.38, respectively. Revenue grew 13% y/y mainly attributable to the growth in the total number of stores over the past twelve months, from 1,301 stores on May 3, 2020, to 1,368 stores on May 2, 2021, and an increase in comparable-store sales driven by higher sales of seasonal items, including Easter holiday and spring-summer products. Due to Covid-19, the Ontario government placed limits on store capacity and sale of non-essential goods which had an immediate and sustained impact on sales during the quarter. Due to the ongoing pandemic, Dollarama has limited the guidance it will be providing for Fiscal 2022 to new store openings and capital expenditures. The company expects to open 60 to 70 new stores during the year and have capital expenditures in the range of US$160.0 million to US$170.0 million. DOL shares are trading lower at midday. 2 SCOTIA WEALTH MANAGEMENT U.S. equities S&P500 Index Intraday (12:00 PM) < U.S. equities, as measured by the S&P 500 Index, are trading slightly Level Pts Chg % Chg higher at midday as markets continued to trade in a tight range. 4,233 5.5 0.1% < Eight of the index’s eleven sectors are trading higher, with the Health Care 4,500 2,500 sector up ~0.9%. 4,000 2,000 3,500 1,500 3,000 1,000 S&P 500 biggest movers 2,500 500 Last price %∆ 2,000 0 Fox Corp 37.64 2.9% 2.9% Jun Sep Dec Mar Jun Twitter Inc 60.32 2.6% 2.6% Issues Resmed Inc 212.20 2.3% 2.3% < Advancing 236 < Declining 263 Regeneron Pharmaceuticals Inc 517.69 2.2% 2.2% < Unchanged 3 Catalent Inc 106.40 2.2% 2.2% Index stats: Campbell Soup Co 46.36 -5.6% 5.6% < 1-yr return 32.0% Dish Network Corp 41.18 -5.5% 5.5% < P/E 29.9x < Dividend yield 1.4% United Parcel Service Inc 198.22 -5.5% 5.5% Brown-Forman Corp 76.13 -4.5% 4.5% Fedex Corp 291.45 -3.7% 3.7% In corporate news: Campbell Soup Company (CPB) < Campbell Soup reported weaker-than-expected Q3/21 results with revenue of US$1.98 billion and adjusted EPS of US$0.57 missing Bloomberg consensus estimates of US$2.00 billion and US$0.66, respectively. The revenue miss was largely driven by lagged year-ago figures that were boosted by pandemic-related demand. Mark Clouse, Campbell’s President, and CEO said, “our results were impacted by a rising inflationary environment, short-term increases in supply chain costs, and some executional pressures as we continued to advance our transformation agenda, primarily in our Snacks division. We are confident that these are all addressable, and we are taking appropriate actions, including putting pricing in place for the next fiscal year.” As a result, the company said it would boost prices to adjust for inflation that cut into profits during the quarter. The company provided updated guidance for FY/21 with adjusted EPS expected to be in the range of US$2.90 to US$2.93, below Bloomberg consensus estimate at $3.08. CPB shares are trading lower at midday. United Parcel Service Inc. (UPS) < UPS announced its strategic priorities, three-year financial targets, and new ESG targets at its investor and analyst conference this morning. The company’s fresh three-pronged strategy focuses on improving its customer experience (target 2023 Net Promoter Score of 50 or higher), employee experience, and innovation by highlighting technology and productivity initiatives. Financial targets for 2023 include revenue of US$100 billion, adjusted operating margin of 13.2%, cumulative CAPEX over the next 3 years of US$14 billion, and adjusted ROIC of 27.5%. UPS pledged to be carbon neutral across scope 1, 2, and 3 emissions in its global operations by 2050. Interim 2035 environmental sustainability targets include a 50% reduction in CO2 per package delivered for its global small package operations (versus 2020), 100% of company facilities powered by renewable electricity, and 30% of the fuel used in its global air fleet be sustainable aviation fuel. 3 SCOTIA WEALTH MANAGEMENT International equities Stoxx Europe 600 Index (Market Closed) < European equities, as measured by the Stoxx Europe 600 Index, ended Level Pts Chg % Chg the day slightly higher as investors braced for the next reading of U.S. 455 0.6 0.1% inflation due Thursday. 500 6,000 < 450 Eleven of the index’s twenty sectors ended the day higher, with Health 4,000 400 Care sector up ~1.9%. 350 2,000 300 Stoxx Europe 600 biggest movers 250 0 Jun Sep Dec Mar Jun Last price %∆ Dufry Ag 61.86 9.6% 9.6% Issues < Advancing 285 Argenx Se 235.20 9.4% 9.4% < Declining 300 Aeroports De Paris 122.45 7.9% 7.9% < Unchanged 9 Swedish Orphan Biovitrum Ab 154.35 7.1% 7.1% Index stats: < 1-yr return 23.0% Galapagos Nv 65.52 6.5% 6.5% < P/E 38.4x Salmar Asa 597.80 -8.2% 8.2% < Dividend yield 2.9% Zalando Se 93.90 -4.3% 4.3% Acciona Sa 134.90 -4.3% 4.3% Voestalpine Ag 35.24 -3.7% 3.7% Husqvarna Ab 117.50 -3.5% 3.5% In corporate news: Grab Holdings Inc. (AGC) < Singapore’s Grab delayed the expected completion of its record-breaking US$40 billion merger with U.S. SPAC Altimeter Growth Corp. (AGC) to Q4/21 from Q3/21. The ride-hailing and food-delivery giant had to push back its deal deadline as it works on a financial audit of the past three years. Grab is the latest company to be affected by intensifying scrutiny from U.S. financial regulators on deals involving SPACs, which has led to some blank- check companies restating filings in recent months. Grab also a provided an update on its business performance for Q1/21. Consolidated gross merchandise value rose 5.2% y/y to US$3.6 billion, with 49% growth in food delivery helping to offset a decline in ride hailing. The financial services segment expanded by 17% y/y. Spend per user increased by 33% y/y, driven by synergies across its business segments. The company did not provide revenue or profit numbers. AGC shares are trading lower at midday. 4 SCOTIA WEALTH MANAGEMENT Disclaimer This report is provided to you for informational purposes only and is not intended to provide personal investment advice. This report does not include or constitute an investment recommendation and does not take into account the particular investment objectives, financial conditions, or specific needs of individual clients. Any statements regarding future prospects may not be realized. Before acting on this material, you should consider whether it is suitable for your particular circumstances and talk to your investment advisor. The author(s) of the report and the supervisors of the Global Portfolio Advisory Group may own securities of the companies included herein.