In the markets: Trump Considers 200% Tariff On EU Alcohol
Plus: Canadian ministers to meet with Lutnick to discuss steel and aluminum tariffs; AtkinsRéalis sells 40.7% of 407 stake.
Canada Stock Digest - Mar. 13, 2025
Market Overview
S&P/TSX Composite Index: Closed at 24,434.25 CAD, down 324.51 points or 1.31% for the day.
S&P/TSX Venture Composite Index: Closed at 613.98 CAD, up 12.09 points or 2.01% for the day.
NASDAQ Composite: Closed at 17,648.45 USD, up 212.35 points or 1.22% for the day.
Dow Jones Industrial Average (DJIA): Closed at 41,350.93 USD, down 82.55 points or 0.20% for the day.
S&P 500: Closed at 5,599.30 USD, up 27.36 points or 0.49% for the day.
Stock & Market News
Stock Market Updates: The Dow Jones Industrial Average experienced a 150-point drop in early trading, while the S&P 500 and Nasdaq Composite also saw declines. Investors are reacting to the PPI inflation report and ongoing trade tensions. CNBC
US Futures Slip: U.S. stock futures declined as investors awaited developments on a government funding bill deadline and remained concerned about economic growth. S&P 500 futures were down 0.3%, while Nasdaq 100 futures fell 0.4%. Reuters
European Markets: The FTSE 100 in London was down by 0.8%, while the DAX in Frankfurt fell by 1.2%. Investors are reacting to the PPI inflation report from the US and growing concerns about global trade. CNBC
Analyst Upgrades and Downgrades: Desjardins raised Peyto (PEY) to $17 on cost reductions but warned its dividend remains stretched. Raymond James downgraded Conifex (CFF) to “market perform” on tariff risks despite deep value. Ventum hiked Blackline Safety (BLN) to $8.25, citing strong growth and margin expansion. National Bank maintained Birchcliff (BIR) at $8, seeing strong cash flow and asset potential. Stifel reaffirmed Aritzia (ATZ) at $73, highlighting U.S. and international growth opportunities. RBC raised Hudbay (HBM) to $16 but trimmed Labrador Iron Ore (LIF) to $36. Scotia cut Propel (PRL) to $44, while Canaccord lifted Stack Capital (STCK) to $14.75 on NAV growth. Globe
Intel's New CEO: Intel's stock price surged by 5% following the announcement of Pat Gelsinger as the new CEO. Wall Street analysts expressed optimism about his experience and the potential for a successful turnaround. CNBC
Dollar General Earnings: Dollar General (DG) reported fourth-quarter earnings of $2.57 per share, slightly below analyst estimates of $2.60. The company's revenue of $10.2 billion was in line with expectations, but same-store sales growth was weaker than anticipated. CNBC
Algoma Steel's Loss: Algoma Steel reported a $66.5 million net loss for the fourth quarter of 2024, compared to a profit of $25 million in the same period last year. The loss is attributed to lower steel prices and reduced demand. The Canadian Press
Empire Co. Ltd. Profit: Empire Company Ltd., the parent company of Sobeys, reported a $146.1 million profit for its third quarter, up from $120.5 million in the same period last year. Sales increased by 5.2% to $7.84 billion. BNN Bloomberg
Transat A.T. Loss: Transat A.T. reported a net loss of $93.9 million for its first quarter, compared to a loss of $52.7 million in the same period last year. Revenue increased to $702.4 million from $643.5 million. BNN Bloomberg
AtkinsRéalis Group Profit Down: AtkinsRéalis Group reported a fourth-quarter profit of $120 million, down from $150 million in the same period last year. The company attributed the decline to project delays and increased costs. Simultaneously, AtkinsRéalis announced the sale of a 40.7% stake in Highway 407 ETR for $3.25 billion, aiming to streamline its portfolio and focus on core engineering services. BNN Bloomberg
CIBC's New CEO: CIBC has named Harry Culham as its next CEO, effective later this year. Culham, who has risen through the ranks from an intern, is expected to bring stability and continuity to the bank.Bloomberg
Couche-Tard's Takeover: Alimentation Couche-Tard has officially stated it will not pursue a hostile takeover of Japan's Seven & I Holdings Co., Ltd. Bloomberg
Canadian Auto Parts Stocks and Tariffs: Canadian auto parts stocks are experiencing significant volatility due to concerns over new U.S. tariffs. Magna International and Linamar Corp. saw their stock prices drop by 3% and 4% respectively, as investors worried about the potential impact on their export businesses. Bloomberg
US Registration for Canadians: The U.S. will implement a new requirement for Canadians staying longer than 30 days to register with U.S. authorities. This measure is intended to enhance border security and track long-term visitors. The Deep Dive
OpenAI and CoreWeave Deal: OpenAI has signed an $11.9 billion deal with CoreWeave, a cloud computing provider specializing in GPU-accelerated workloads. This partnership will significantly expand OpenAI's computing infrastructure, enabling it to train larger and more complex AI models. The Deep Dive
Economic News
Alcohol Tariffs and the EU: The U.S. is considering imposing tariffs of up to 200% on certain European alcoholic beverages, including wines and spirits, as part of escalating trade tensions. This move comes in response to ongoing disputes over digital services taxes and aircraft subsidies. CNN
Trump-Europe Trade: The Trump administration's trade policies are prompting strong reactions from European nations, with the potential for retaliatory tariffs on a range of goods. CBC
PPI Inflation Report: The February 2025 Producer Price Index (PPI) report showed a 0.6% increase, exceeding analyst expectations. This indicates rising inflationary pressures at the wholesale level, which could translate to higher consumer prices in the coming months. CNBC
Canadian Ministers and Lutnick: Canadian ministers and the Ontario Premier are scheduled to meet with Cantor Fitzgerald CEO Howard Lutnick to discuss the impact of U.S. tariffs on Canadian steel and aluminum producers. They will seek to explore potential solutions and advocate for the interests of Canadian businesses. The Canadian Press
Canada's EV Tariffs: Despite escalating trade tensions with the U.S., Canada has confirmed it will maintain its existing tariffs on Chinese electric vehicles (EVs). The Minister of Innovation, Science, and Industry emphasized that Canada's trade policies are independent and based on national interests, regardless of U.S. actions. BNN Bloomberg
World News & Politics
Russia-US Ceasefire Talks: High-level discussions between Russian and U.S. diplomats are focusing on the possibility of establishing a ceasefire in a conflict zone. The talks are reportedly centred on specific conditions, including troop withdrawal and the establishment of humanitarian corridors. CNN
Pakistan Train Hostage Situation: A passenger train in Balochistan, Pakistan, was seized by armed individuals, resulting in a hostage situation involving dozens of civilians. Security forces are deployed, and negotiations are underway. Reports indicate the incident is linked to regional separatist movements. CNN
Carney Swearing-In: Mark Carney's official swearing-in ceremony on Friday will mark his formal entry into a new phase of his career. Speculation is high regarding his potential policy directions and future political involvement. CBC
Canada-Syria Sanctions: Canada has extended and reinforced its sanctions against the Syrian regime, citing ongoing human rights abuses. The sanctions include asset freezes and travel bans targeting specific individuals and entities. CBC
Economic Events
Monday Housing Starts
Recent Earnings
TSX
ATKINSREALIS GROUP INC (ATRL)
Revenue reported at 2.39B CAD, estimated at 2.58B CAD
EPS reported at 0.79 CAD, estimated at 0.56 CADEMPIRE CO (EMP.A)
Revenue reported at 7.65B CAD, estimated at 7.73B CAD
EPS reported at 0.62 CAD, estimated at 0.62 CADFREEHOLD ROYALTIES LTD (FRU)
Revenue reported at 81.7M CAD, estimated at 76.9M CAD
EPS reported at 0.36 CAD, estimated at 0.33 CADBIRD CONSTRUCTION INC (BDT)
Revenue reported at 947.71M CAD, estimated at 936.67M CAD
EPS reported at 0.68 CAD, estimated at 0.67 CADARIS MINING CORPORATION (ARIS)
Revenue reported at 222.63M CAD, estimated at 219.72M CAD
EPS reported at 0.24 CAD, estimated at 0.20 CADPROPEL HOLDINGS INC (PRL)
Revenue reported at 185.64M CAD, estimated at 186.08M CAD
EPS reported at 0.54 CAD, estimated at 0.60 CADFLAGSHIP CMNTYS REAL ESTATE INVT TR REIT (MHC.U)
Revenue reported at 33.97M CAD, estimated at 34.18M CAD
EPS estimated at 1.44 CADBALLARD POWER SYSTEMS INC (BLDP)
Revenue reported at 41.73M CAD, estimated at 35.22M CAD
EPS reported at -0.21 CAD, estimated at -0.23 CAD
US Markets
ADOBE INC. (ADBE)
Revenue reported at 5.66B USD, estimated at 5.71B USD
EPS reported at 4.97 USD, estimated at 5.08 USD
Fun Fact
🚲 Did you know that learning to ride a bike actually changes your brain? When you master cycling, your brain creates new neural pathways that store the muscle memory needed to balance, steer, and pedal—all without consciously thinking about it. This process, called procedural memory, is why the phrase "it's just like riding a bike" exists; once you've learned, you never truly forget. The repeated movements involved in cycling strengthen connections between neurons, improving coordination and even enhancing cognitive functions like focus and reaction time. So every time you hop on a bike, you're not just getting exercise—you’re reinforcing a skill that’s deeply wired into your brain!
Investment Tip
🌱Investing in companies with significant R&D spending is like betting on the future before it happens. Businesses that prioritize research and innovation—think biotech, tech, and clean energy—are constantly developing new products, giving them a competitive edge and long-term growth potential. It’s like planting seeds in a garden that will keep blooming for years—forward-thinking, resilient, and full of upside.
Have a great trading day! 😊
Disclaimer: The information provided in this newsletter is for educational purposes only and does not constitute financial advice. Always consult with a financial advisor before making investment decisions.