“Price is what you pay. Value is what you get.” - Benjamin Graham
Last Week’s Overview
| Index |
Performance |
| TSX Composite |
0.73% |
| Dow Jones |
1.27%
|
| S&P 500 |
1.18% |
| NASDAQ |
1.54% |
Source: Bloomberg (May 28, 2026)
Weekly Insights
Each week, we break down the key events and market movements shaping the investing landscape. From economic data to investor sentiment and global headlines, this section captures what mattered most and how it impacted markets.
Consumer Spending Continues to Support Economic Momentum
Consumer spending stayed strong this past week, with retailers like Best Buy, Kohl's, and Dollar Tree all reporting better-than-expected results that show shoppers remain engaged when they are offered real value. April spending also edged higher, a sign that household demand continues to be a steady driver of economic growth even as people become more selective about where their dollars go.
For our portfolios, this reinforces our focus on owning high-quality, consumer-facing companies with strong brands and the disciplined execution that tends to win when shoppers prioritize value.
Improving Sentiment Lifts Both Stocks and Bonds
Both stocks and bonds climbed this week as investors grew more confident in the overall market outlook, with the S&P 500 pushing toward record levels while Treasury yields eased modestly. What is encouraging is that investors were willing to take on more risk even with mixed economic data, a sign of growing.
confidence that the expansion can continue smoothly. This constructive backdrop highlights why we build diversified portfolios positioned for long-term growth, allowing clients to participate as confidence broadens across the market.
Canadian Banks Benefit from Strong Capital Markets Activity
Canada's largest banks delivered another round of stronger-than-expected earnings, powered by rising markets, active trading, and improving deal-making that lifted their capital markets divisions by roughly 27% year over year. Several banks also raised dividends and announced share buybacks, a clear signal of confidence in their balance sheet strength and long-term profitability. With wealth management and core banking also holding up well, these results reflect exactly the kind of diversified, well-run financial institutions we like to own.
Key Drivers of Our Outperformance
We believe in transparency when it comes to where our outperformance is coming from. This section spotlights a top-performing company we hold, a sector where we've taken a winning position, and a strategy that has driven recent success across our portfolios.
- Top Company: Booking Holdings Inc. (BKNG)
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- Booking Holdings was a standout performer with a 7.28% gain, as investors responded to resilient global travel demand, especially across European leisure and premium international trips. The company benefits from an asset-light model that generates strong free cash flow, along with growing momentum in alternative accommodations and AI-powered travel personalization on its Booking.com platform. We own Booking because it captures durable demand as consumers continue to prioritize experiences, making it a high-quality holding with real earnings power.
Source: Optimize Asset Management (May 28, 2026)
- Top Sector: Information Technology
Information Technology led our performance this week, with Qualcomm surging over 15% and steady contributions from Apple, Meta, Amazon, SAP, and Taiwan Semiconductor. The strength reflects continued enthusiasm for artificial intelligence, cloud spending, and a recovery in semiconductor demand, all areas where these companies hold dominant competitive positions. While valuations are elevated, we remain comfortable owning established technology leaders with strong balance sheets and durable, long-term growth ahead of them.
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- Source: Optimize Asset Management (May 28, 2026)
- Top Quant Strategy: Size
Our Size strategy was another strong contributor, as investors favoured large-cap companies with stronger balance sheets, greater earnings visibility, and more operational resilience. Giants like Apple, Meta, Qualcomm, Amazon, and Booking Holdings benefited from a market that increasingly rewards scale, liquidity, and consistent profitability. We continue to emphasize high-quality, large-cap franchises because their size and resources allow them to navigate change while protecting the competitive advantages that drive long-term returns.
Source: Optimize Asset Management (May 28, 2026)
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What To Look For Next Week
We also look ahead to the economic reports, events, and earnings that may influence the week ahead. From inflation and jobs data to corporate updates from key market players, this section keeps you informed on what's coming and why it matters.
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- U.S. Job Openings (Tuesday, June 2): Tuesday brings the latest look at job openings, a key gauge of how much demand employers have for new workers. The most recent report showed openings at 6.866 million in March, still coming in above expectations, with gains in finance and insurance helping to offset softer demand in professional and business services.
Hiring also ticked up to 5.6 million, a healthy sign for the labour market, which matters for investors because steady employment supports consumer spending and corporate profits, two of the most important engines for markets.
Source: U.S. Bureau of Labor Statistics (May 28, 2026)
- ISM Services Index (Wednesday, June 3): Wednesday brings the ISM Services index, which measures activity across the largest part of the U.S. economy, the service sector. The latest reading came in at 53.6, comfortably above the 50 level that separates growth from contraction and well ahead of last year's pace, with the business activity measure climbing to 55.9.
We will be watching the prices component, which has been running hot at 70.7, since it offers early clues on inflation and helps shape expectations for interest rates, both of which matter for how stocks and bonds perform.
Source: Institute for Supply Management (May 28, 2026)
- U.S. Unemployment Report (Friday, June 5): Friday's employment report is the week's headline event, giving us the clearest read on the health of the job market. The most recent data showed the unemployment rate holding steady at 4.3%, in line with expectations, though the labour force shrank slightly and participation eased to 61.8%. Because employment drives consumer spending and corporate earnings, this report often sets the tone for markets and influences the path for interest rates, making it an important one for client portfolios.
Source: U.S. Bureau of Labor Statistics (May 28, 2026)
Sources: Bloomberg (May 28, 2026), Optimize Asset Management (May 28, 2026), U.S. Bureau of Labor Statistics, and Institute for Supply Management.
Disclaimer: This report is for informational purposes only and does not constitute investment advice. Please consult with your financial advisor before making any investment decisions.