Morning Markets for Wednesday, May 13, 2026

Key Concepts

• AI Infrastructure Build-out: The massive capital expenditure (CapEx) by hyperscalers to build data centers and AI capabilities.
• In-Situ Recovery (ISR): A mining method for uranium that uses borehole wells to dissolve ore in place, bypassing traditional excavation.
• Product Support Revenue: Maintenance and service revenue for heavy equipment, which acts as a stable, high-margin earnings driver.
• Financial Literacy Gap: The discrepancy between parents discussing money with children and the children's actual ability to manage finances independently.
• SABRE (Surface Access Borehole Resource Extraction): A patented mining method for extracting ore from subsurface cavities without open pits or shafts.

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1. Market Overview and Economic Context

• Global Geopolitics: U.S. President Donald Trump is in China for trade-focused discussions, accompanied by major tech CEOs including Jensen Huang (NVIDIA), Elon Musk, and Tim Cook.
• Market Sentiment: U.S. markets are under pressure due to hotter-than-expected inflation data, fueling fears of prolonged high interest rates.
• Tech Sector Outlook: Jeff Buchbinder (LPL Financial) remains bullish on tech, citing an "earnings avalanche." Tech earnings are growing at 50% in Q1, with 30–40% growth expected in subsequent quarters.
• CapEx Trends: AI hyperscalers are expected to spend $725 billion this year, potentially reaching $1 trillion next year. Buchbinder argues this spending is productive and backed by strong cash flows, unlike the "wasteful" telecom infrastructure spending of the late 1990s.

2. Corporate Mergers and Acquisitions

• Equinox Gold & Orla Mining: Equinox is acquiring Orla in a $5.1 billion cash-and-stock deal.
  • Strategic Goal: The merger aims to accelerate the combined entity into a "senior producer" status, targeting 1.1 million ounces of gold annually, with a path to 1.9 million ounces.
  • Synergy: CEOs Darren Hall and Jason Simpson emphasized "geographic symmetry" and the ability to leverage existing assets in North America without increasing jurisdictional complexity.
  • Timeline: The deal is expected to close in Q3, pending regulatory approvals.

3. Industrial Performance and Analysis

• Finning International: Shares rose nearly 5% following a strong quarterly report.
  • Key Driver: Product support revenue in Canada grew 13% year-over-year.
  • Analyst Perspective: Jonathan Goldman (Scotiabank) characterized the results as a "beat," noting that headline numbers were impacted by one-time long-term incentive compensation (LTIP) headwinds.
  • Data Center Tailwinds: Finning is benefiting from the demand for backup power (reciprocating engines) in data centers, particularly in the UK and Alberta.
• Boyd Group: Shares declined due to a net loss of $8 million, attributed to "transformational expenses" related to the Joe Hudson acquisition and Project 360.
• Algoma Steel: Shares rose despite a $160 million loss, as the company transitions from blast furnaces to more efficient electric arc furnace operations.

4. Uranium Sector Developments

• Denison Mines: CEO David Cates highlighted the start of site preparation for the Phoenix ISR uranium mine in Saskatchewan.
  • Methodology: Phoenix will be the first Canadian deployment of In-Situ Recovery, which avoids the need for conventional tailings facilities or milling, significantly reducing construction time and costs.
  • Inventory Strategy: The company is monetizing its uranium holdings (acquired at ~$30/lb) at current market prices near $100/lb to fund project construction.

5. Financial Literacy for Youth

• The "Gap": Vanessa Bowen (Mint Worthy) noted that while 90% of parents discuss money with their children, only 9% believe their children are prepared for financial independence.
• Actionable Advice:
  • Normalization: Start conversations early (age 5–6) to reduce stress and make money management a natural topic.
  • Practical Application: Use tools like "smart spend" cards to allow children to experience real-world transactions, including the consequences of spending and saving.
  • Transparency: Parents should share age-appropriate financial details, such as household utility bills, to teach budgeting concepts.

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Synthesis/Conclusion

The market is currently defined by a massive, AI-driven capital investment cycle that is fueling growth in hardware and semiconductor sectors. Simultaneously, the mining industry is undergoing significant consolidation (Equinox/Orla) and technological evolution (ISR and SABRE methods) to meet long-term production targets. Despite inflationary pressures, analysts remain optimistic about sectors with strong "product support" cycles and clear demand drivers like data center infrastructure. Finally, there is a growing emphasis on bridging the financial literacy gap for the next generation through practical, real-world experience rather than just theoretical education.