A Personal Note: This is my final Pulse newsletter for 2024, and I’d like to take a moment to wish you and your loved ones a joyful holiday season and a Merry Christmas.

As we close out the year, I want to express my gratitude for your incredible support and feedback. It’s been a privilege to have you as part of this community, making this first full year of our Pulse newsletter truly special. About a year ago, Brandon and I had the idea to create this weekly newsletter to keep our community informed. When I published the first edition, I never imagined how far we’d come.

To give you some perspective, newsletters in the financial services industry typically have an average open rate of 27.1%. Popular publications, like The Milk Road, boast rates closer to 42%. Thanks to you, Pulse has far exceeded those benchmarks, with an open rate of 75.95% by the end of 2024. This remarkable engagement shows we’re doing something right—and I couldn’t be more thankful to have readers like you.

From the first edition to your thoughtful feedback and moments of connection, your engagement has meant the world to me. I hope this holiday season brings you peace, warmth, and plenty of cheer.

Here’s to an exciting year ahead—together!

Warm wishes,

Marc

The Week in Review

Weekly Market Recap: U.S. and Canada

The trading week was shortened for the Christmas holidays, and during the week traders delivered both presents and chunks of coal. We got off to a pretty good start, then took a break for the 25th (and 26th here in Canada) and closed things out with a soft Friday.

The Dow Jones led the week with a gain of 0.79%, and the TSX followed closely, finishing up 0.71%. The S&P 500 added 0.70%, while the Nasdaq 100 posted a slightly smaller increase of 0.59%.

S&P 500 Returns | Week At-a-Glance

TSX Returns | Week At-a-Glance

Major Economic Stories

It was a light week for economic releases because of Christmas, but with what was released, we saw mixed economic signals from both Canada and the United States.

Here at home, Canada’s GDP report showed a contraction in November, breaking an 11-month streak of growth, while upward revisions for October did offer a silver lining. In the US, durable goods orders fell sharply, led by a decline in transportation. This adds even more uncertainty to the economic outlook than we already have. (Merry Christmas, right?!)

Let’s take a look:

Canada’s GDP Declines After 11-Month Streak

Canada’s GDP contracted by 0.1% in November (Advance Estimate), its first decline in nearly a year.

Output was dragged down by extractive industries, financial services, and transportation.

In contrast, October’s GDP was revised higher to 0.3%, supported by mining and oil and gas extraction, which popped 2.4%. Services industries grew slightly, but professional services shrank.

• November GDP: -0.1%

• October GDP: Revised up to 0.3%.

• Mining and oil extraction: +2.4% in October.

• Professional services: -0.2% decline in October.

US Durable Goods Orders Fall

US durable goods orders fell by 1.1% in November, a steeper drop than the expected 0.4% decline, and this shows weakness in transportation and fabricated metals.

Core business spending indicators rebounded slightly.

Transportation orders fell 2.9%, while capital goods excluding defense and aircraft rose 0.7%. Excluding transportation, durable goods declined by 0.1%.

• Durable goods orders: -1.1% in November.

• Transportation orders: -2.9%.

• Capital goods (non-defense, ex-aircraft): +0.7%.

• Excluding transportation: -0.1%.

Key Takeaways From this Week’s Economic News

Canada’s Economy

Canada’s economic performance certainly has not been strong, and now the November GDP decline might signal an even greater economic soft patch as industries such as transportation and extractive sectors face challenges. Obviously, one month doesn’t define a trend, but it does highlight vulnerabilities. On a bright note, the upward revision for October GDP, which was fueled by strong oil and gas activity, shows that Canada’s resource-driven economy is holding strong.

Energy Continues to Anchor Canada’s Economy

October’s GDP growth for Canada was powered by mining, oil sands, and natural gas, and it reminds us of the importance of our energy sector. This also highlights how resource exports are (and always have been) a vital buffer here in Canada, even as other industries like professional services go through dips like we saw in this report.

All that being said, this reliance could be a double-edged sword. If energy prices or demand waver, the ripple effects could dampen broader economic momentum. On the flip side, strong energy performance could act as a stabilizer. Let’s hope for the latter scenario.

US Durable Goods: Weakness in Transportation Overshadows Strengths

The sharp drop in US durable goods orders for November highlights lingering vulnerabilities in manufacturing. Transportation equipment was the main drag, but we did also see 0.7% rise in core business spending which offers us a more nuanced view. It’s good to see businesses invest in machinery and primary metals even in the midst of the broader downturn. As always, it’s not cut & dried.

THIS WEEK’S POLL QUESTION
(Results in Next Week’s Newsletter)

Let’s end the year with a straight-forward poll question. It’s not about numbers this time around, it’s about your feelings. Personally, are you optimistic that 2025 will be a good year for you or are you worried you might suffer a setback?

Please answer this week’s poll question and don’t forget to share your thoughts! Happy New Year!

LAST WEEK’S POLL RESULTS

Not. Even. Close. It’s abundantly clear how our readers feel about the reasoning behind the U.S. Fed’s recent guidance that they will reduce the number of rate cuts to only two in 2025. It’s all about the fear of a resurgence of inflation, which is something nobody wants to see.

Comment of the Week

Inflation

“It's been said that the employment numbers were misleading because by far, most of the recent hirings were all in the public sector. Which makes it seem like the outgoing administration was trying to make things look better than they really were. Although cutting rates would help the private sector create more jobs, inflation is the scarier boogeyman here, because its so hard to reign in once it gets going.” - aloquicious

THE BANK OF CANADA

Bank of Canada Deliberations  

• Global economy showed mixed performance, with U.S. growth strong but risks looming.

• Canadian inflation aligned with expectations, but growth softened.

• Concerns over weaker business investment and U.S. tariff uncertainty.

• A 50 basis point rate cut was seen as necessary to address excess supply.

I thought I’d end the year by covering what is probably one of the most important financial metrics that we follow, that being the Bank of Canada rate decisions. Here’s a summary of the Governing Council’s deliberations, which came out on December 23.

The Council began by assessing global trends. The U.S. economy showed resilience, with strong consumer spending despite inflation pressures in services. In contrast, China grappled with weak household demand, and Europe faced manufacturing challenges. Global financial conditions eased, and the Canadian dollar depreciated against the U.S. dollar.

Canada’s Growth and Inflation Trends

Domestically, we saw a year of mixed economic signals. Consumption rose, supported by easing monetary policy, and yet GDP growth lagged. Weak business investment and concerns over immigration policy impacts on supply and demand shaped a cautious outlook. Inflation remained steady at 2%, influenced by services price moderation and temporary tax changes.

Monetary Policy and Decision

As it contemplated the most recent rate cut (December 11th) the Council debated a 25 versus 50 basis point rate cut. It noted that while housing and consumption has gained momentum, overall growth softness and excess supply called for decisive action. A 50-basis point cut was chosen to balance inflation and stimulate demand. The Council says that future rate adjustments will be implemented cautiously.

Read the Full Story here.

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CORPORATE GOVERNANCE
Costco Faces Backlash Over DEI Programs    

• Costco’s DEI initiatives sparked controversy among employees.

• Some workers expressed concerns over mandatory training programs.

• DEI efforts remain part of Costco’s long-term strategy.

• Growing debate reflects broader corporate challenges on inclusivity.

There has been a lot of DEI talk in the economic chatter recently, and now Costco has come under scrutiny for its diversity, equity, and inclusion policies, with reports of employee dissatisfaction over recent training programs. Some workers have raised concerns about the mandatory nature of these sessions, expressing frustrations over their implementation and perceived effectiveness.

Balancing Inclusivity and Pushback

Costco’s leadership is standing pat for now and defending the initiatives, emphasizing their commitment to fostering an inclusive workplace. But the backlash does shine a light on broader challenges for corporations of all sizes as they navigate current public sentiment on the topic, while still making sure they address diversity goals.

Long-Term DEI Vision

Costco says it plans to stay the course with DEI as a core pillar of its organizational values. As I noted, the retail giant, with all its influence in the sector, will no doubt help shape the policies of other large companies on what has become a very touchy subject.

Read the Full Story here.

In partnership with Harvest ETFs

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OTHER NEWS FROM THE PAST WEEK

Another Jackpot Surpasses $1 Billion
The latest lottery jackpot has exceeded $1 billion, drawing attention from hopeful players nationwide. Experts warn the odds remain slim, but the massive payout continues to captivate dreamers. 

Trump Asks Supreme Court to Delay Trial
Former President Donald Trump has requested the Supreme Court delay a TikTok ban. His position on the topic has reversed since his first term, probably because of his newly-formed relationship with Elon Musk.

Streaming Giants Challenge Canadian Content Rules
Netflix and Disney are pushing back against Canada’s online streaming rules, questioning the definition of "Canadian content." The case could set a precedent for global streaming platforms. 

Passenger Flight Rules Under Review
Canada’s proposed passenger compensation rules face scrutiny from airlines and travelers. New measures aim to strengthen consumer protections but may increase costs for carriers. 

Musk Faces Criticism Over X Policies
Elon Musk is under fire for allegedly censoring conservative voices on X, particularly around immigration discussions. Critics argue this undermines his free speech advocacy. 

Global Economic Tensions Loom Over 2025
Economic uncertainty is rising as geopolitical tensions and inflation concerns dominate outlooks for 2025. Analysts worry prolonged conflicts could exacerbate supply chain disruptions and economic volatility. 

Market Movers

Top 10 Weekly Gainers

Top 10 Weekly Losers

10 Most Overbought Stocks

10 Most Oversold Stocks

The Relative Strength Indicator (RSI) can provide a signal that suggest a stock is either overbought or oversold.
📈A stock that has an RSI over 70 is considered to be in “overbought” territory. This might suggest that the stock is due for a pullback, however it is not a recommendation to sell.
📉A stock that is trading with an RSI below 30 is considered to be in “oversold” territory. This might suggest that the stock is due for a recovery, however it is not a recommendation to buy. Always perform your own due diligence.

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