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[music] >> Hello, I'm Greg Bonnell. Welcome to MoneyTalk Live, brought to you by TD Direct Investing. coming up on today show, we are going to be joined by MoneyTalk Susan Prince to have a look at what the Fed's preferred inflation indicator is saying about the state of the consumer, the economy and maybe even the path of interest rates. TD Asset Management's Christian Medeiros will take us through four scenarios that he's watching for the US debt ceiling talks. aND gREG bARNES FROM td sECURITIES WILL GIVE US HIS VIEW ON WHETHER gOLD WILL RECOVER TO ITS RECORD HIGHS THAT WE SAW EARLIER IN THE MONTH. Plus in today's WebBroker education segment, Jason Hnatyk is going to show us how you can find dividend information using the platform. But forget all that, let's get you an update on the markets. We have some green on the screen and the trading week. We will see if that holds into the close. Right now during the lunchtime trading session, we are about hundred 19 points on the TSX, more than half a percent. We saw some stability under the energy trade. It's been benefiting some of the big energy place. Nothing too dramatic but let's check in on Suncor at this hour. A little off its highs of the session but still positive, only about half a percent. Manulife financial, the financials basket showing a bit of strength today. It is modest but it's a more than 1 1/3%. Although Green does law add add up to the top line TSX number. Still there is one percent to the upside for the broader read of the American market, 45 points to the upside, a lot of excitement around artificial intelligence, some of the plays in that space this week has been benefiting the tech heavy NASDAQ. Let's check in on the NASDAQ right now. In terms of the broader market, we are doing even a bit better. It's up about 1.9%. And then Nvidia has been the big story this weeka big jump in that stock but some of the other chip names are starting to rally as well, including advanced micro devices. At 126 bucks and change,Europe almost 5% on that name today and that's your market update. Well, the US Federal Reserve's preferred gauge of inflation showed that consumer prices in the US are remaining sticky. Joining us now to discuss, Susan Prince, editor of the MoneyTalk DIY Magazine. Susan, always great to catch up with you. We work together on a daily basis. Your first time a MoneyTalk Live, such a pleasure to have you here. >> Thank you. >> We are going to dig into the Fed's preferred gauge of inflation. What's it telling us? >> It's telling us, this is the personal conception etc. charitable to telling us is that consumer spending is higher than anticipated. So people were looking for it to grow about, just over 1/4 of a percent and it grew closer to half a percent. That's on a month over month basis. If we look at it on a year-over-year basis, people were looking at it coming in around 4.3%. It came in at 4.4%. The Fed likes this because it's a measure of inflation and this number is showing us that, as you said, it's a bit sticky. It's great that it's measure and we can look at it and say, this tells us something important. Unfortunately, what it's telling us is that inflation is still here. And when we see that, and the Fed has been trying to tame inflation, this number is saying that we haven't rustled that number down yet and that is people wondering, what will happen at the next Fed meeting? >> The last mile being the hardest smile, it's hard to jump down, eight, seven, six, at these numbers it gets more stubborn. What is there beneath the headline number? The headline number does inform us in a certain way but there is often a good story to tell underneath that number. >> What was underneath the number and what I found interesting was, like, okay, if consumers are spending more, there are two components. Where is that money coming from? Part of it is if you are working, part of it is a good story in that consumer income is up and it's up just under half a percent. That's great. It's nice to see income growing, although that's an inflation function. Here's what we get into a bit of trouble. So consumer income is up just about half a percent. However, spending is up almost 1%. So you got a disconnect. Basically, you are spending more… The growth in spending is more than the growth and income. Worth the money coming from? Well, savings are going down. Savings have dropped by about half a percent and we know that credit card debt was growing a lot. And the growth of credit card debt has slowed, but credit card debt is still growing. So how are people paying for these increased expenses? Well, there take money out of their savings and they are using credit card debt. Those things are also a bit troubling when the Fed looks at all that. >> Yeah, I saw some reaction to it including from TD Economics basically saying, what did this mean? The market did get a little excited off this number in the market and pricing in more than a 50% chance that we are going to see another hike from the Fed. I don't think I was TD Economics's call but the market, just a couple of weeks ago, was thinking maybe they were done. Now, they are back in play again based on all this. >> It does feel like they are back in play and it's interesting when we see data how the markets respond to it. When is a good news and what is the bad news? In this case, the sense of it being a little uncertainty, just point out though, I would love to tell you some things were we are seeing increases. So the largest contributors to the increase: a new motor vehicles. Price for new cars are still high. Pharmaceutical products. And I broke it down and it waspharmaceutical products and not necessarily prescription products but you can break it down and get that granular with it and housing were still strong. Where is it starting to stall? Well, for you, you would want of the one of the categories it's really slowing his people are buying less instruments. Less musical spending. > I have not bought a new guitar in several years so if I read American, I would be to blame for this. I would probably be to blame for it Canada as well. we all know you need more than one. Dr. Perley. > And things to Susan Prince for joining us, editor of MoneyTalk DIY Magazine. If there are signs of progress on the is it US debt ceiling talks. Imagine lawmakers are heading into a long weekend without a deal. Krista Medeiros, per flu manager with TS management join me earlier to discuss the four potential scenarios, possible scenarios, of where things to go from here. >> Number what is actually getting a deal and passing it to the house. And this is really what's going to have to happen at the end of the day, the most likely outcome in order for us to get through this. So we're one week away. Next Thursday is the X date on June 1. What we would expect, if this scenario were to play out, is an announcement of some sort of deal by sometime on the weekend, which would give legislators enough time to go over the bill, pass it through the House and Senate, have the president's signature, and get it all done before the X date. So that's the first scenario and the best case scenario. >> Best case, obviously the cleanest scenario, too, in terms of all this. So short of that, let's go to number two. >> Number two is delay. So if we can't get a deal done, we can't come to an agreement, let's buy ourselves more time. Two ways to delay things. The first, and the best outcome of the delays, would be to just pass a short-term extension. Let's kick it down the road, maybe a few weeks. Maybe we could get to the budget negotiations in September. Buy us a few more months or a few more weeks to discuss the debt ceiling. The second issue-- the second way of delaying it, this is much more problematic, but it's technically possible-- is the Treasury could decide if we go through the X day and don't have any deal, we haven't raised the debt limit, hey, let's just prioritize payments only on principal and interest. And so that way we avoid a default for the US government. The problem with that, though, is that there's a lot of other expenditures the Treasury has to make. And without the ability to raise new debt, they won't be able to cover a lot of those expenditures. So if that persists, that payment prioritization persists for weeks, days, maybe longer, that's a very material hit to GDP as you miss out on the government expenditure. And the second thing is you wouldn't be able to avoid a downgrade in US government debt because I think rating agencies would get quite skittish in that scenario. >> I think Fitch just last evening sort of put them on notice saying, we're watching this, and you know, your rating-- its triple-A rating right now for the United States. So that's at stake. OK, so just get a deal, get it all behind us, move on. Delay it. Number three, I think as you put it, some more fanciful resolutions. Some-- I wouldn't say wild ideas, but some very interesting ideas have been thrown out there in the past couple of weeks. >> Yeah, Jerome Powell called these in some recent meetings and testimonies, he called it the rabbit and the hat. So, these are more out-there scenarios that people are discussing. One would be a trillion dollar coin. So, technically the Treasury can mint a trillion dollar denominated coin, deposit that with the Fed into their Treasury General account and then spend that, and not have to worry about raising new debt. Both parties don't think that this is a good option for many reasons. So it's quite unlikely that we mint a trillion dollar coin. The second one that's talked about a little bit more is called the 14th Amendment. Technically in the US Constitution, there's a 14th Amendment that says the US debt needs to be honored effectively. It's very debatable whether the Supreme Court and legal challenges would stand up if the president were to say, I invoke the 14th Amendment. Treasury continues to issue debt. Let's avoid the debt ceiling. It's unconstitutional. What would happen in that scenario is that any debt issued after that 14th Amendment would be a second tier of Treasury, because people would be unsure if the Supreme Court would say, hey, it's valid, or hey, this isn't valid. So that's a very risky scenario, and we don't think that would happen unless we're in the absolute worst case scenario. >> OK, that sort of leads us, I think, into number four, a worst case scenario here. >> Yeah, the worst case scenario would be an absolute default. Again, we have two parties playing a game of chicken. We're getting closer and closer to the cliff. But as I mentioned, there's a number of parachutes that would prevent us from getting to a default. Could delay it, could use debt prioritization, just paying those interest payments. We could use the 14th Amendment, maybe some other whacky scenarios. But if all those were to fail, then there would be a default, because we would be missing interest payments on those debt after the X date. So, that'd be the worst case scenario. That'd be a severe market event. That would really challenge-- >> Do we even understand the implications of that market event? I've talked to people who've basically said, because we'd be in this sort of uncharted territory, we know it would be serious. But we can't say this, this, and this will happen, because we simply don't know. >> We don't. So one is an operational consideration, it's a bit like a Y2K event. We've never dealt with US treasuries defaulting before. Our brokers, our platforms, everyone ready to deal with defaulted Treasury Securities, are the technology systems on the back-end of the financial market's prepared to deal with that? Would it still be allowable as collateral? If not, then we could have pretty severe liquidation events or concerns in a default scenario. The other aspect is the US government debt is the risk-free asset for the entire world. It's a very important asset class. And so if that were to be called into question, that would raise a whole bunch of issues for all asset classes. So, I think that would be a very negative market event, but it's one that there's a lot of mechanisms we have in place to hopefully avoid. >> Now, investors could be forgiven given the track record of the past decade or more of that when you run into some kind of trouble, the central bank, the Fed, just rides to the rescue. And if you do end up in a default scenario, is there anything the Fed can do? >> So we have some indications of what they might do, because back in 2011 when we had another very contentious debt ceiling conflict, we had a meeting of the Fed soon after that deal was enacted. And they discussed, hey, what would we have done if things got really bad? And so what they would do is mostly provide liquidity to the market through a repo reverse repo facilities. Perhaps support money market funds. Then also there was some discussion of maybe swapping defaulted securities as well. So there's things that they could do to provide liquidity to the market, but they were very careful in those minutes to make sure they don't void the Fed's independence, right? They don't want to be seen as financing the government or getting in the way of fiscal policy. So they would provide liquidity to make sure markets still function as smoothly as they possibly can, but the Fed cannot save this scenario. At the end of the day, legislators need to pass a debt ceiling raise in order to solve this issue. >> That was Christian Medeiros, poor folio manager with TD Asset Management. Right now, let's get you updated on the top stories in the world of business and take a look at how the markets are trading. Canadian Western Bank is lowering a target for loan growth amid concerns about the economy. The bank says in light of that, it doesn't expect to hit several of its financial targets for this year. The resulting Canadian Western Bank follow a week of earnings releases from the country's largest financial institutions. Got shares of gap in the spotlight today. The retailer did hand in another quarterly loss, but there margins improved on fewer promotions and lower air freight costs. The company, whose banners include Old Navy and Banana Republic, has been cutting jobs in recent months as well eviscerating costs. You can see the stock up to the tune of almost 11%. Marvell Technology says the artificial intelligence boom is becoming a key driver of growth. The semiconductor and hardware company handed in an earnings beat for the most recent quarter. And it says it does expect AI -related sales to at least double in fiscal 2024. The street seems interested in the namesake, the stock is up a little more than 20%. A quick check in on the markets, we will start here at home on Bay Street with the TSX Composite Index on this last day of the trading week, we are up 132 points, a little more solid than half a percent, actually two thirds of a percent to the upside. South of the border, headline surrounding the debt ceiling negotiations appear to be positive. It seems like both sides are indicating that they are close. There are still a few issues. So as the markets watch that, there's a bit of a bid. We've got 40 points to the upside for the S&P 500, a little bit more than a full percent. Excitement around any name that seems to be in the artificial intelligence base today, Nvidia being the big story of the week on that story. The price of gold has come off that multi-decade high that it's our earlier this month, but it still had a strong start to the year compared to copper, which has seen a steep drop in prices recently. Earlier I spoke with Greg Barnes, head of mining equity research at TD Securities about what's driving these boots. >> I think it's inflation, obviously, people worried about inflation using gold as a hedge against inflation-- weakness in the US dollar-- we've seen some of that year-to-date-- obviously, concerns around the debt ceiling ongoing. And I think we've seen massive central bank buying, which has been a big support for the gold price. And that's come mostly from developing countries. And with the US sanctioning Russia and sanctioning some of their cash holdings outside Russia, gold has become something of a safe haven for central banks globally as well. So I think there's multiple factors that have been driving gold. Too, as well, is the Fed-- what they're going to do with interest rates. And we know, if we look back historically, when the Fed starts to cut rates, that generally is very good for gold. And the opportunity cost of holding gold goes down. So gold prices go up. And I think there's some anticipation built into the gold price about when the Fed will actually start to cut rates-- so multiple things driving gold. I think the trend-- obviously, nothing goes up in a straight line. But the trend, I think, in our view at TD Securities, is we will see gold go higher again from these levels. >> Could it go substantially higher for these levels? It was quite something to see it break $2,000 and get up to multi-year highs at that level. And people always-- after you see a run like that, people get cautious. Think, well, OK, can it have more in it. How much more could it have in it? >> The mid $2,000 range is not out of reach. $2,500 certainly is a price that-- it's a nice, round number. And I think it's something the market will look for in that kind of environment. And the Fed is cutting rates. So I don't see any reason why it couldn't get there. >> So at $2,500, what about the mining sector itself and those names levered to gold? Would that mean good things for them, or could we see some divergence? Because I know there's other pressures. Like, the price of what they're taking out of the ground is one thing and then, I guess, the cost of taking it out of the ground. >> Exactly. And the cost pressures have been the big issue for the gold miners over the past 18 months or so. Particularly in 2022, costs were up anywhere between 15% and 20%. So a lot of the increase in the gold price was offset by higher costs. We've seen some of those inflationary pressures ease off. And if the Fed is doing things correctly and it's working, we should see inflationary pressures come down. I'm not sure if we'll get to 2%. But that would help. Clearly, margin expansion is what we're looking for. So at higher gold prices, if we see the cost pressures come down, that would work very well for the gold miners themselves. >> You said $2,500 isn't out of reach for gold, given certain factors. What could stand in its way? What would keep it stalling? >> If the US dollar strengthens for whatever reason, which it shouldn't do if the Fed is cutting rates, inflation does come down, some of the safe-haven attributes for gold as an inflation hedge will fade. Central bank buying-- if that dials back from the very strong levels we've seen recently, that, obviously, wouldn't help gold at all. And we've seen record levels of central bank buying. So I'm not sure if that can continue. So there are things that could hold the gold price back. But again, I think if the-- if we're in an environment where the Fed is cutting rates, that should be good for gold. And we should see higher gold prices from there. >> Right. Off the top of our conversation, we talked about a divergent path here. So we've done a nice rundown on what's driving gold and where it could go. What about copper? >> A couple of things there-- I think number one is the world is looking towards a recession sometime later this year, perhaps early 2024, whether it's a deep recession, a shallow recession, whatever. We are definitely heading into an economic slowdown. And the leading indicators are showing us that. Copper inventories on the LME, London Metal Exchange, have started to creep higher off a very low level. And they're still not high by any stretch of the imagination. So people are watching that trend higher. That tends to weigh on the copper price. We should see better supply of copper in the second half of the year. A couple of mines have ramped up. Some of the social and political issues in South America have died down, so that should help the copper price go up as well. And quite frankly, the reopening trade, China reopening trade, at the beginning of the year that really pushed copper prices up a lot has disappointed. The reopening-- >> Well, why is that disappointing? It seemed like such a simple thesis at the beginning of the year. China pretty abruptly drops its COVID policies, and everyone thinks it's game on across a number of things, including the materials sector. It hasn't played out. >> Well, I think the rest of the world is slowing down, so that doesn't help China in its exports. I think in the reopening trade on the consumer side, it's been pretty good, but on the industrial manufacturing side is not quite so good. And that's what's important for copper. So there has been a disappointment on that front from a copper consumption, industrial production point of view. I think the industrial production numbers last week from China were disappointing. So that gives you an indication it hasn't been as strong as people had hoped. So I think all of those things are feeding into the weakness we've seen recently on the copper price. >> Now, longer term, we keep hearing about the electrification of everything. And of course, it's pretty hard. Unless they find some other way to generate electricity, to generate it without copper, what do we still think longer term for copper? >> We're still seeing an issue with copper supply and stronger demand. So those two things should lead us to counterbalancing each other and should lead us to higher copper prices from here, definitely. I think if we look at-- currently, copper supply is experiencing a bit of a bounce, with several copper mines, big ones, coming into production right now. But if we look beyond those two or three mines, big ones, that are coming online, there isn't much behind it in terms of big, new greenfield copper projects in the pipeline. They just aren't there. So supply is going to struggle over the second half of this decade. And if we have a stronger demand environment, we will see continuing deficits in the copper supply market. >> Want to, before we finish our conversation, ask you about the earnings season that we've just been through among the miners. How would you characterize it? >> Disappointing, as expected. >> Disappointing, as expected. >> Q1 is always a weak quarter, whether it's seasonality, whether-- just a reset after what is typically a strong Q4. Companies try and push hard in Q4 to meet their guidance for the year. And there's always a bit of a setback in Q1 as a result of that. And I think we saw that to a bit of an extreme level in Q1, both on the gold side and the base metal side. But we are seeing improving production through the balance of the year as a number of projects come online, grades improve, less maintenance work done. So I think we will see improving production, both on the copper side and the gold side, in the second half of 2023. >> That was Greg Barnes, head of mining equity research at TD Securities. Now let's get our educational segment of the day. If you're looking to find dividend information, WebBroker has tools which can help. Jason Hnatyk, Senior client education instructor with TD Direct Investing joins us know it more. Jason, let's dive right in. People are interested in dividends, how can WebBroker help? >> Yeah, let's do that, great. So we are all familiar with the old buy low, sell high, capital appreciation is one of the big motivations for buying a security. The people are also interested in identifying a steady stream of income and dividends can be part of that. So let's jump into WebBroker so we can help identify which companies are paying dividends and how to get more information on those. Now is not a requirement for all companies to pay dividends. So to identify that's happening here, we are looking at a major retailer that we have up in the market overview section. I would like to direct everybody's attention to the right hand side of the screen. We've gone down about half the way in the page. Therefore quick lines here that are really important to our conversation. The first two are going to be at dividend yield an annual dividend rate. That annual dividend yield or the dividend yield were seeing their is apples to apples when you are looking to see that the returns company is offering compared to others. We get that dividend yield by dividing the annual dividend rate into the stock's current price. So giving us with this particular company 1.56. So now that we've identified the dividend, let's understand when we are going to be paid and when we know we need to be investing in the company. The payment date that's clearly just the date that we can expect that dividend payment to be made into our account, the ex dividend date is going to be very important for investors who are looking to buy a company and want to make sure they are having a dividend paid into their portly. The ex dividend date signifies the you actually need to purchase this security one business day prior to ask to be eligible for a dividend. Now for those investors that are currently holding onto securities and are thinking about selling them but also want to capture that dividend, you need to hold that security up until the ex dividend date and if you sell it on the X date or any date after, you will still be in line to capture those proceeds of the revenue that the companies are paying out to their owners. Another piece of information I'd like to show everybody here as we scroll back to the top the screen, if we look at our events page here, and it's this third tab from the right, this is a key piece of information where we get to see information about company earnings dates, dividend dates as well as analyst ratings. Let's focus on the dividends information here. On here, we get to see the quarterly dividend the companies are paying out on a per share basis. We get to see the cadence of the dividend, so with regard to the ex dividend date in the payment date. Most importantly, what I'm looking for this pages I'm looking for consistency with the dividends or looking to seecompanies that are increasing their dividend amounts tovalidate that there is a steady stream of income. It's all about being informed. When you have more information, you will know what to expect going forward into the future. >> So that's a good grounding on dividend information on the platform. What if you want to get beyond one company and you want to compare that company's dividend against their peers? How do you do that? >> Yeah, we will take a look at that. It's all about having your money work harder and smarter at the same time. So we might be getting good results for company but there is always opportunities to contrast and compare that with other peers in a particular companies sector or industry. So let's jump in so we can see a unique way to track that in WebBroker. So we're going to stay here with this particular company and we are going to go to the fundamentals tab. And this is where you are going to come and review a lot of the fundamental information, a lot of the specific ratios for doing an analysis to determine if stocks are undervalued or overvalued. But there's also appear comparisons tab. This is where we get to compare our specific company not only against the industry average that it resides in but also against its closest peers and competitors. If we scroll down on this particular page, we can see that there is an annual dividend section where we can track this particular company's results and contrasted against how some of its competitors are doing. I looking to rebalance or reallocate, this could give some additional investment choices to ensure in getting the most bang for my buck. >> Great stuff as always. Thanks of that. >> My pleasure. >> Jason Hnatyk, client education instructor at TD Direct Investing. And make sure to check out the learning centre in WebBroker for more educational videos, live, interactive master classes and upcoming webinars. Earnings season always gives us a great window into how different sectors are doing when it comes to the state of the financial community. But when it comes here, one of the big trends has been the pickup in activity as we get further into a post-pandemic world. David Toung, Senior analyst with Argus Research join me earlier to discuss. >> What I find really interesting is the recovery in procedural volumes. These are elective procedures. People had delayed them during the pandemic. There were also some hospital staffing issues. And that's all been largely resolved. And people feel more comfortable about coming in and having these procedures done. Whether that's getting a new knee or getting a pacemaker in, the hospitals have just greater capacity because their staffing issues are stabilized. There's a couple of stocks that have done quite well on that. One of them is Stryker. It's an orthopedic company. They also make surgical equipment to equip the OR. So another company that we look at is Intuitive Surgical and happy to talk more about them. And, of course, there's the Johnson & Johnson, which is a combination of a medtech company and a pharmaceutical company. >> Now, let's break down a few of those companies because obviously, when people think about health care, they think about biopharma. They think about drugs. But obviously, procedures, as you said, post pandemic, picking up. People going back. Let's break some of them down. We'll start with Stryker. >> Sure. So Stryker, they make hips and knees. They have a robotic platform called Mako which assists in the placement of the replacement joint. And not only does it assist in the placement, but there's this whole visualization software where the surgeon can plan the surgery, look at the anatomy of the knee, measure it, and then put all that into the software and make a really, really precise cutting and alignment of the new joint. The robotics is getting more and more popular because of better outcomes, less pain, shorter recovery periods, just better success rate. So, you know, Stryker is one of the leading companies in orthopedic robotics. So we continue to look at Stryker. Another robotics company that we follow is Intuitive Surgical. What they make is a Da Vinci robotic platform. These are mainly for soft tissue procedures that are like bariatric resections of-- for cancer removal. But the stock had been down earlier last year. But the numbers show that not only is it procedural volume, but they are also placing more units. Not only is Intuitive placing units in the US, but it's also in Europe, in Japan, and in China. And one of the things that we look at for Intuitive is the utilization rate. Like, how many procedures are done per unit per day? And in the US, it's about one or two per unit. But utilization in China is like three to four times that. Those surgical units are used around the clock. Procedures are done at night. And so it's very, very popular I mean, right now, there's a quota system on how many of these units can be placed into the China market. But you can definitely see there's demand there. And as utilization goes up, the hospital will buy additional units. And each unit brings in a lot of consumables-- software, the instruments that are actually used on the robotic arms. So, you know, it's quite a complex that Intuitive has as they place more of these robotics. >> David, when you talk about the fact that obviously, because of the pandemic, a lot of procedures were put off. We're seeing a huge demand for it right now. A year out from now, two years out from now, is the risk that it's going to be pretty tough comps when they're looking back at the year-over-year kind of picture? Will things sort of settle out after people who have been waiting to get their knee done get their knee done? >> I think that is a good question to see what will happen, whether the bowl is-- at the same time, these companies have introduced new technology, new products that-- they meet a need, meet a medical need that hadn't been addressed before. I'll give you another example of what I'm talking about. I follow a company called Silk Road Medical. And they make the equipment for what's called key cards, a transcatheter aortic revascularization, kind of a long, long name there. But what it does is it prevents stroke. It's a way of putting a stent in the carotid artery so that blood clots don't travel to the brain and cause a stroke. And this is a big improvement over their standard of care. So there's a lot of runway for adoption of this, both in US and overseas markets. So irrespective of the recovery, there is a clear runway for this type of new revolutionary technology that, as I mentioned, that meets a very important need, that is, to prevent stroke. >> All right. So, some interesting things there for our audience to dig deeper into if they're interested. What about other takeaways from earnings season? Obviously, the backlog of procedures, a big story. Anything else cropping up during the earnings reports? >> I also follow insurance companies like Humana, Elevance, which used to be called Anthem. And the big one is UnitedHealth. And these companies are showing growth in-- as the population ages, they're expanding the membership in Medicare Advantage. If you look at the demographics in the US, you look at the population as they're getting older. So here's a-- the population group, the key addressable market is getting older. And so these are UnitedHealth elements. They're seeing growth in their Medicare Advantage businesses. Medicaid is another area of growth for them because states want private insurers to manage these Medicaid programs. Another area where these are growing is what's called value-based care, which is essentially risk sharing with the physicians. Ultimately, it works well is that the insurer benefits and the physician benefits, because as they become more efficient, they essentially can earn more profit. >> That was David Toung, Senior analyst at Argus Research. Let's check in on the markets on this last trading day of the week. Hundred and 37 points on the upside in the TSX Composite Index, a little shy of three quarters of a percent. We are seeing a bit of calm at least today return to the energy market in terms of the price of crude oil and some of our energy needs getting a bit of a bid. It's modest but it's putting points on the table. At 2256, Cenovus is off the highs of the session but still up a little shy of a full percent. Canadian Western Bank, they are taking down their long growth targets for the year. Taking a look at an economy that's perhaps softening. That struck down a little bit more than 4%. South of the border, we are still waiting for US debt ceiling negotiation resolution at some point. Both sides keep coming out of the stock saying they are making progress. The market seems a bit calmer on the issue right now. We are heading into a long weekend for the United States after our long weekend last week. Your of 50 points right now and the S&P 500, a little shy of 1 1/4%. The tech heavy NASDAQ has been seeing some movement this week. A lot of excitement around artificial intelligence and demand for certain processes to make it all happen. Seek out the NASDAQ now rallying for a second day, 243 points the upside, up almost 2% on the NASDAQ. As we said, Nvidia was the big story of the week as it really up to the sales guidance for this quarter. Some other names are getting a bit as well, including Micron, whose up just a little shy of 6%. You want to stay tuned. On Monday, Daniel Ghali, senior commodity strategist with TD Securities will be our guest taking your questions about commodities. A reminder that you get a head start with those questions. Just email moneytalklive@td.com. That's all the time we have the show today. Thanks for watching. On behalf of me and everyone behind the scenes he brings the show to you every day, we will see you next week. [music]