INVESTMENT STRATEGY GROUP MARKET BEAT Monday, January 04, 2021 MACRO VIEW Market Indicators Index Level* Change YTD YTD (C$) The TSX (+0.7%) is higher helped by a rising energy sector while Wall S&P/TSX 17,547.87 0.66% 0.7% 0.7% Street's main indices are modestly lower after hitting a record high S&P 500 3,740.87 -0.40% -0.4% -0.3% earlier in the trading session. West Texas Intermediate crude oil (- NASDAQ 12,879.06 -0.07% -0.1% 0.0% 0.2%) prices are slightly down, while OPEC meets to discuss capping Dow Jones 30,324.83 -0.92% -0.9% -0.9% output at current levels in February, as COVID-19 keeps worries about Nikkei 225 27,258.38 -0.68% -0.7% -0.6% demand elevated. Gold (+2.2%) prices started the new year by Euro Stoxx 50 3,581.81 0.82% 0.8% 1.3% surpassing the key US$1,900 level, as rising COVID-19 cases have FTSE EM 2,700.64 1.16% 1.2% 1.1% investors turning to the metal. North American bond yields have steadied in morning trade with the U.S. 10-year at 0.93%, and the Canadian Market Movers Canadian 10-year at 0.68%. The Canadian dollar strengthened against the greenback as oil prices climb and domestic data showed factory BPY-U Brookfield Prope 16.2% activity expanding in December at its fastest pace on record. WEED Canopy Growth Co 8.8% Canadian factory activity grew at its fastest pace on record in K Kinross Gold 7.1% Decembe r as new orders and production expanded, while manufacturers ABX Barrick Gold Crp 6.8% remain optimistic that output would continue to rise. WPM Wheaton Precious 6.2% CAR-U Can Apartment -0.9% CANADIAN MARKETS QSR Restaurant Brand -1.0% SHOP Shopify Inc -1.2% Brookfield Asset Management (BAM.A, -3.1%) has offered to buy all of BNS Bank Of Nova Sco -1.5% the units it currently does not own of Brookfield Property Partners BAM/A Brookfield Ass -3.1% (BPY.UN, +16.4%) for US$5.9 billion or US$16.50 per unit representing a *As of January 4 2021 10:31 AM. Source: Bloomberg 14% premium to the last closing price. BPY unitholders will have the option to receive US$16.50 in cash, 0.40 Brookfield Class A shares, or U.S. Market Movers 0.66 of BPY preferred units with a liquidation preference of US$25.00 TSLA Tesla Inc 4.2% per unit. NVDA Nvidia Corp 3.0% Fiera Capital (FSZ, +3.2%) is selling Bel Air Investment Advisors, its INTC Intel Corp 2.9% ultra-high net worth private wealth platform to Hightower Advisors. It XOM Exxon Mobil Corp 2.0% has also completed the sale of its New York-based private wealth TMO Thermo Fisher 1.9% investment manager, Wilkinson Global Asset Management, to Wilkinson CMCSA Comcast Corp -2.1% Global Capital Partners. Fiera noted that the combined selling price for both transactions is approximately $81 million. RTX Raytheon Technol -2.4% BKNG Booking Holdings -2.5% Magna (MG, -0.9%) agreed with Fisker (FSR-NYSE, +2.3%) to develop an KO Cocaola Co/The -2.6% Advanced Driver Assistance System for the Fisker Ocean SUV which is BA Boeing Co/The -3.0% expected to launch in late 2022. The Fisker Ocean will be manufactured *As of January 4 2021 10:31 AM. Source: Bloomberg exclusively by Magna in Europe. Benchmark Bonds & Rates U.S. MARKETS Chg1 Yld1 Mar-212 Jun-212 Magellan Health (MGLN, +12.2%) shares were trading higher following CA 2YR 0.00% 0.20% 0.35% 0.40% the announcement that it will be acquired by the health insurer, CA 10YR 0.00% 0.68% 0.80% 0.85% Centene (CNC, +1.5%). Centene will pay US$2.2 billion in cash to US 2YR 0.00% 0.12% 0.30% 0.30% US 10YR 0.01% 0.92% 1.00% 1.10% purchase Magellan, inclusive of debt. The equivalent US$95 per share purchase Rate1 Mar-212 Jun-212 price represents a 14.7% premium to Magellan’s prior closing price. CA Prime 2.45% - - MGM Resorts (MGM, -4.1%) has placed a bid to acquire British company CA Overnight Tgt 0.25% 0.25% 0.25% Entain for US$11 billion. Entain, the parent of betting firm Ladbrokes, Fed Funds Tgt 0.25% 0.13% 0.13% 1 - As of January 4 2021 10:31 AM.; 2 - CIBC forecasts. Source: Bloomberg CIBC PRIVATE WEALTH MANAGEMENT INVESTMENT STRATEGY GROUP 1 Market Beat Currencies & Commodities has noted that the offer significantly undervalues its business. Price* Change YTD Thermal imaging and sensor maker, FLIR Systems (FLIR, +19.1%) will be C$/US$ 0.785 0.001 -0.1% acquired by Teledyne Technologies (TDY, -7.4%) for US$8 billion in cash US$/€ 0.815 0.005 -0.4% and stock combined. The deal reflects an implied share price of US$56, Gold $1,934.96 $36.28 1.9% a 28.1% premium to its prior closing price. Copper per 100 lb $357.45 $5.55 1.6% The UK has begun administering doses of AstraZeneca (AZN, +1.9%) and Oil (WTI) $48.52 $0.00 0.0% Oxford University’s joint COVID-19 vaccine. Unlike the vaccines Oil (WCS) $33.92 $0.75 2.3% developed by competitors Pfizer (PFE, -1.0%) and Moderna (MRNA, Natural Gas (NYMEX) $2.61 $0.07 2.7% +5.1%) AstraZeneca’s vaccine does not require extremely cold storage Natural Gas (AECO) $1.95 -$0.02 0.0% temperatures. *As of January 4 2021 10:31 AM. Source: Bloomberg Tesla (TSLA, +4.2%) reported that it delivered a record-setting 499,550 vehicles in 2020, up from 2019’s figure of 367,500. Despite exceeding Equity Indices Since Jan 2020 Wall Street’s consensus production estimate of 481,261 vehicles, Tesla 120 missed its initial 500,000 vehicle goal. Tesla points to the COVID-19- 110 related temporary closure of its U.S. plant as the main reason for 100 missing its target. 90 80 70 60 31 Jul 31 30 Apr 30 31 Jan 31 31 Oct 31 30 Jun 30 30 Sep30 31 Mar 31 29 Feb 29 31 Aug31 31 Dec 31 Dec 31 30 Nov 30 31 May 31 S&P/TSX Dow Jones S&P500 Earnings Releases Name Date Est. Act. T-Mobile Us Inc (TMUS) 01/07 $0.51 -- * Micron Tech (MU) 01/07 $0.65 -- * Constellation-A (STZ) 01/07 $2.41 -- * Walgreens Boots (WBA) 01/07 $1.01 -- * 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 -- Aphria Inc (APHA) 01/13 -$0.03 -- Blackrock Inc (BLK) 01/14 $8.64 -- * First Republic B (FRC) 01/14 $1.50 -- * Source: Bloomberg * = USD Economic Calendar - Canada Economic Calendar - U.S. Day Release Prior Est. Actual Day Release Prior Est. Actual 1/4 Bloomberg Nanos Confidence 55.1 -- 56 1/4 Markit US Manufacturing PMI (Dec F) 56.5 56.3 57.1 1/4 Markit Canada Manufacturing PMI (Dec) 55.8 -- 57.9 1/4 Construction Spending MoM (Nov) 1.30% 1.00% 0.90% 1/5 MLI Leading Indicator MoM (Nov) 2.70% -- -- 1/5 ISM Manufacturing (Dec) 57.5 56.7 -- 1/5 Industrial Product Price MoM (Nov) -0.40% -- -- 1/5 ISM New Orders (Dec) 65.1 -- -- 1/5 Raw Materials Price Index MoM (Nov) 0.50% -- -- 1/5 ISM Prices Paid (Dec) 65.4 -- -- 1/7 Int'l Merchandise Trade (Nov) -3.76b -3.54b -- 1/5 ISM Employment (Dec) 48.4 -- -- 1/7 Ivey Purchasing Managers Index SA (Dec) 52.7 -- -- 1/5 Wards Total Vehicle Sales (Dec) 15.55m 15.73m -- 1/8 Net Change in Employment (Dec) 62.1k -20.0k -- 1/6 MBA Mortgage Applications 0.80% -- -- 1/8 Full Time Employment Change (Dec) 99.4 -- -- 1/6 ADP Employment Change (Dec) 307k 50k -- 1/8 Part Time Employment Change (Dec) -37.4 -- -- 1/6 Markit US Services PMI (Dec F) 55.3 55.2 -- 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 CIBC PRIVATE WEALTH MANAGEMENT INVESTMENT STRATEGY GROUP 2 Market Beat IMPORTANT DISCLOSURES Important disclosures, including potential conflicts of interest information, our system for rating investment opportunities and our dissemination policy can be obtained by writing to CIBC World Markets Inc. BCE Place, 161 Bay Street, 4th Floor, Toronto, Ontario M5J 2S8, Attention: Research Disclosures Request. This report is issued and approved for distribution in Canada by CIBC World Markets Inc., a member of the Investment Industry Regulatory Organization of Canada and a member of the Canadian Investor Protection Fund. Any questions should be directed to your sales representative. 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