BNN - Wednesday, May 22, 2024 - 01:00 p.m. (ET) - Segment #1

diversification and professional management from a leading asset manager in Canada. TD Target Maturity Bond ETFs. The future is zero Carbon. Mayfair Gold is developing Canada's first carbon neutral gold project with offsets funding residential

solar panel installation across the country. Mayfair Gold. >> Welcome to training day. I'm andrew bell in for amber kanwar. We are all over some of these earning stories and we are awaiting nvidia after the market closes today. The wall street journal said this week that traders in the options markets are betting on another minus move in the shares of the chip company pricing in the options market. Indications the traders were expecting on a swing of about 10% her. We get those results later today after the last earnings report, the company jumped 16% to a record high. Lululemon stock came under pressure, hitting the sense march of last year. I let some of not charged under pressure that she product officer leaving. There are concerns that the athleisure brand could be losing its edge. As bloomberg put session. Raymond james says the departure of this design carew adds to the wall of worry in the near term. We're going have more on that coming up at target under pressure sounding cautious about discretionary consumer michael baker will join us. He's palace with da davidson. He says this stock is trading, below its average five-year multiple and is still one of the cheaper retail. Ideas out there. Copper came under pressure, stepping away from monday's recored highs. And you can see some of the copper stocks giving up their gains are worries about pressure on consumption. End shy now with these height copper prices. Meanwhile, bhp finally making progress with that. You know, its takeover targets, agreeing to talks after an another increase in the bench. Let's get to more stories we're bringing you from the bnn bloomberg newsroom. Canada pension plan investment board earned an 8% return in its latest fiscal year as double digit gains and stocks of credit private equity madoff for a weaker performance in emerging markets and real estate. The funds posted a 5% loss on its real estate holdings and blamed high interest rates and work from home trends. Despite that loss, the chief executive of cpp ib says the fund is not about something that sector. >> I look at the results over the past few years. Logistics, huston. Well, data centres are thanks to the ai boom are doing well. Residential, especially in the americas doing well, but then that's offset by challenges in the office space, specifically in the americas and some in europe and retails been challenged for a while. So portfolio today, it's, it's you know, percent of the cpp investment portfolio. And for us, that seems about right for where we are and will continue to invest and continue real estate as part of the portfolio. >> Canada's banking regulator says homeowners may face, quote, payment shock when they renew their mortgages. And then you report the office of the superintendent of financial institutions identifies 4 key risk to the financial system, including a real estate securities lending and mark inches. We are going to find out more when we speak to peter routledge. He is the superintendent of financial institutions and that's coming up today on the close at 4:00pm eastern time. >> And shares in cae dropping to their lowest in nearly 2 years. >> Late yesterday, the montreal-based maker of flight simulators posted preliminary revenue for the 4th quarter that missed analyst estimates. It also caught its three-year profit growth forecast. Cae is taking nearly 700 million dollars charges, mostly ju true problems in its defence segment, including fixed price contracts that have become less profitable. Here's a look at the tsx as slipping a little bit today from wrecked yesterday's record high close. And it's a similar story in the united states. The s&p 500 down from its record closing high yesterday.

shares in target under pressure sales dropped in the retailer's latest quarter. Profit lagged expectations. Meanwhile, competitor tjx, which specializes in off-brand clothing, are, should climb that's remained heard sent on by other retailers. That company posted upbeat 1st quarter numbers and it lifted its annual profit forecast. Let's bring in justin elliott, portfolio manager at caldwell investment management. Great to see you as ever. Thanks for joining us. Our target. Briefly, what do you think is our investors missing value here by selling the stock? >> No, I think targets definitely had some you know, as you pointed out on the discretionary side, which is 50% of their business or so continue to cease office there as consumers pulled on those more discretionary kind of non purchases on the more essential side as well. You know, notice to incremental to hold back there. As they just announced, they're going to reduce prices on about 5,000 items over the summer in hopes is kind of getting back out traffic. But what we've seen in this inflationary environment customers are are really trading down to the low cost leaders, the walmart and the cause because of the world and maybe even seen continue traffic with some higher income consumers that we might shopped target. And so I think it's going to be tougher. Target basically reiterated their full-year guidance to hit those numbers, just given some of the headwinds are facing on the traffic from, but then also the margin front with those a softer discretionary cells. >> Slug about it has been a favourite of investors betting that our consumer. Sorry. Raised outlook for lower priced clothing. >> Yes, so tjx definitely had a good as you said, I betray downplay has really been kind of a key driver for that story. But what you notice basically with the the retail environment changing as it has people going company certain downsizing tjx has become a more important player to a lot of vendors and that's a lot of them to go out there and buy merchandise at attractive margins, but also get better brands day historically would be able to buy and that's basically allow them to offer what they call kind of think better and best assortment. And they really stepped up their offering on you know, better and best side and that's allowed them to attract. I think some hiring from consumers interestingly, what they kind of discuss on this morning's call was there's a bit of a flywheel again with more, the brands kind of coming into the store as they work with new some of those better brands are more comfortable now, offering their products in may. Marshals, where maybe they didn't want to be the odd one now they're among some of those higher tier brands. And seen a kind of picking up, they see more traction, basically without better. Brandon that struck in customers and you know, business with in the past. >> Would you be a buyer of tjx right now, justin. >> So it's a stock that we used to own in what finds. We do like the fundamental story and we think it you a nice run right to play out. We run more concentrated and so we kind of, you know, put our eggs into our highest conviction baskets. Not you think that this is a good stock and I think it's, it's a good old for sort of a nice 3, 5, years. >> Costco, a pandemic darling. We know that you still hard to get into the parking us what's your view there? >> Costco as I was saying, I'm always been a low-cost always pass along value to the consumer and that's something that people really in the higher inflationary environment. So people were going where they can get the best deals. People that have been previous costco shoppers had really discovered. Value proposition continue to shop there, continue to stick around. So costco is really seeing very strong renewal rates on new memberships. I'm very strong retention overall, they're noticing a lot of people tried to brand have their basic membership created to now that executive membership gives you a little bit more rewards, but also kind of drives a more frequent spending in the storm. So costco, been a long-term they've got a great business model, but I think they just kind of had some of celebration was a everything that happened during the pandemic. And they've kind of ronald step tires. So like the story om here as well. >> What about walmart, the the uber discount retailer

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