Market News: Week Ending May 15, 2026

Market News: Week Ending May 15, 2026

According to the U.S. National Association of Realtors, existing-home sales edged 0.2% higher to a seasonally adjusted annual rate of 4.02 million units in April from March’s upwardly revised 4.01 million unit pace. Despite the monthly move, overall sales were unchanged on a year over year basis. The association attributed the sales growth in April to “the continued improvement in housing affordability.” With the market looking for a small advance, these results are stronger than expectations, due to the upward revisions to the March figures. Activity in the housing market has a significant "ripple" effect on the broader economy. 

The U.S. Bureau of Labor Statistics reported that the consumer price index rose 0.6% (seasonally adjusted basis) in April. Over the last 12 months, the overall index has increased 3.8%, well above the 3.3% figure posted for March and the highest since May 2023 (4.0%). The current data revealed that the energy sub-index was the primary driver, rising 3.8% on the month and standing with a 17.9% advance on a 12-month basis. As well, core inflation (CPI ex food and energy) rose 2.8% (y/y) for April compared to 2.6% in the prior report. These figures are in line with market expectations as the energy price surge has been well documented. Market participants will remain focused on any developments in energy pricing and the broader inflation implications heading into the Fed’s next two-day policy meeting, scheduled for June 16 and 17. 

The U.S. Bureau of Labor Statistics reported that its Producer Price Index – Final Demand (PPI-FD) climbed 1.4% higher (seasonally adjusted) in April, following a revised 0.7% increase in March (originally reported as 0.5%). The index rose 6.0% for the 12 months ended April 2026, up from the 4.3% now posted for March and the fastest pace since December 2022 (6.4%). Coupled with the revisions, these results are higher than market expectations. Market participants remain highly focused on price pressures in the U.S. economy and the likelihood that the energy volatility will continue to increase broader inflationary pressures. 

The U.S. Census Bureau announced that retail and food services sales rose 0.5% (seasonally adjusted) in April following a revised 1.6% gain in March (previously reported as 1.7%). Overall sales were up 4.4% compared to April 2025. Excluding autos, sales were up 0.7% during the month and up 6.3% on a year-over-year basis. This report was in line with expectations. Since consumer spending accounts for roughly two-thirds of U.S. economic activity, it is critical to overall GDP results. 

The U.S. Department of Labor announced that initial jobless claims totalled 211,000 (seasonally adjusted) in the week ending May 9, an increase of 12,000 from the previous week's revised level. The previous week's level was revised down by 1,000 from 200,000 to 199,000. The 4-week moving average was 203,750, an increase of 750 from the previous week's revised average. The previous week's average was revised down by 250 from 203,250 to 203,000. These results are in line with market estimates. 

The Canada Mortgage and Housing Corporation announced that housing starts improved 16.5% to 279,317 units (seasonally adjusted annual rate) in April. This is up from March’s revised 239,747-unit level (originally reported as 235,852) which was the weakest since October 2025. The CMHC’s six-month trend level (which tends to smooth the results) was 256,777 in this report, up 3.2% from March, which was the weakest since May 2025. Despite considerable political rhetoric over the intervening 5 years, this measure remains well below the June 2021 level of 285,200. Given the dramatic shortfall in housing availability, these statistics are taking on greater importance. With the market looking for a more modest monthly gain, these results are considerably stronger than consensus expectations. Activity in the housing market has a significant "ripple" effect on the broader economy. 

The U.S. Federal Reserve announced that industrial production rose 0.7% in April, following a revised 0.3% decline in March (previously reported as -0.5%). On a year-over-year basis, industrial production was reported to have gained 1.4%. At the same time, capacity utilization for total industry stood at 76.1% April, up from the 75.7% level reported in March of this year and matching the level April of 2025. These results are stronger than the market consensus and show a rebound across the industrial sector. 

 

Note:
All index performance is in Canadian dollars.

IMPORTANT DISCLAIMERS
The information in this letter is derived from various sources, including CI Global Asset Management, CRA, Bloomberg, National Post, Globe and Mail, Wall Street Journal, Bloomberg, Reuters, Investment Executive, Advisor.ca, MarketWatch, Toronto Sun, The Guardian, MSN.ca and Statistics Canada at various dates. This material is provided for general information and is subject to change without notice. Before acting on any of the above, please contact me for individual financial advice based on your personal circumstances. Certain statements contained in this communication are based in whole or in part on information provided by third parties and CI Global Asset Management has taken reasonable steps to ensure their accuracy. Market conditions may change which may impact the information contained in this document.