In the markets: TSX, Markets Off To A Scary Start As Earnings Pour In
Plus: Russia fines Google a LOT of money; Manulife cutting jobs; Spanish floods death toll reaches 95.
Canada Stock Digest - Oct. 31, 2024
Market Overview
TSX Composite Index closed at 24,507.79 CAD, down by 0.22%
TSX Venture Index closed at 613.40 CAD, down by 1.02%
NASDAQ Composite closed at 18,607.93 USD, down by 0.56%
Dow Jones Industrial Average (DJI) closed at 42,141.54 points, down by 0.22%
S&P 500 closed at 5,813.67 USD down by 0.33%
Stock & Market News
TSX falls Canada’s TSX futures fell Thursday, driven by weak U.S. tech earnings and ahead of key GDP data, while Canadian Natural Resources reported lower third-quarter profits amid reduced production and crude prices.[Reuters]
Global Market Decline Led by Big Tech: Global shares fell after Meta and Microsoft warned about high AI-related costs, overshadowing positive U.S. economic data and contributing to losses in major tech stocks.[Reuters]
Analyst upgrades and downgrades Capital Power Corporation's shares rose after strong Q3 earnings surpassed forecasts, prompting analysts to raise target prices as the company advanced U.S. market integrations and entered early re-contracting discussions for its thermal fleet, while Secure Energy Services Inc. reported Q3 earnings that beat estimates, attributing gains to strong waste management volumes and announcing further price increases, with analysts citing value and stability as reasons to maintain high ratings.[Globe]
Manulife Job Cuts: Manulife Financial Corporation announced job cuts affecting 2.5% of its global wealth and asset management workforce, as the firm focuses on high-growth areas amid industry-wide shifts.[Bloomberg]
Tobacco Settlement Opposition: JTI-Macdonald filed court documents opposing a proposed $32.5 billion settlement with Canadian provinces and smokers, citing unresolved issues related to fund allocation among the involved tobacco companies.[CP]
Canadian Natural Resources Q3 Earnings: Canadian Natural Resources Ltd. reported a third-quarter profit of $2.27 billion, down from $2.34 billion last year, with a slight decrease in daily production and total product sales but exceeding analysts’ adjusted earnings expectations.[BNN]
Gildan Activewear Q3 Results: Gildan Activewear Inc. posted an increase in profit and sales in the third quarter, with net sales reaching $891.1 million and updated its annual revenue growth forecast to low-single digits.[BNN]
Blackstone and Rogers Deal: Blackstone is close to a structured-equity transaction worth C$7 billion for a minority stake in Rogers Communications' wireless infrastructure, helping Rogers manage its debt load while acquiring BCE’s stake in MLSE.[BNN]
Russia Fines Google: Russia imposed a symbolic fine of $20 decillion on Google, demanding restoration of blocked pro-Russian YouTube channels, with penalties escalating weekly.[CNN]
Economic News
StatCan August GDP Report: Statistics Canada is set to release August's GDP report, with projections showing weak economic growth for the third quarter, prompting the Bank of Canada to support growth through recent interest rate cuts.[CP]
U.S. Economic Growth: The U.S. economy grew at 2.8% in the third quarter, driven by consumer spending, while inflation approaches the Federal Reserve’s target, marking a rare “soft landing” for economic expansion.[CNN]
Eurozone Inflation: Inflation in the eurozone rose slightly to 2% in October, fueling speculation on whether the European Central Bank will enact a larger rate cut amid slower economic growth in the region.[CNBC]
World News & Politics
Dodgers Win World Series: The Los Angeles Dodgers won their eighth World Series title, rallying from a five-run deficit to defeat the New York Yankees 7-6 in Game 5, celebrating a thrilling Hollywood ending to their season.[CNN]
Spain Floods: Severe flash floods in Spain’s Valencia region left at least 95 people dead, stranded thousands, and caused widespread destruction, with ongoing searches for missing people and major disruptions to public services.[CNN]
Typhoon Hits Taiwan: A powerful typhoon struck Taiwan, bringing fierce winds and heavy rains, forcing mass evacuations and causing severe flooding across multiple cities.
North Korea ICBM Test: North Korea conducted its longest intercontinental ballistic missile (ICBM) test yet, reportedly achieving a record altitude and distance as a show of force days before the U.S. presidential election.[CNN]
Economic Events
Thursday GDP
Friday S&P Global Manufacturing PMI
Recent Earnings
TSX
Cenovus Energy Inc (CVED)
Revenue reported at 14.141B CAD, estimated at 16.556B CAD
EPS reported at 0.44 CAD, estimated at 0.42 CAD
Open Text Corp (OTEXD)
Revenue reported at 1.775B CAD, estimated at 1.765B CAD
EPS reported at 1.12 CAD, estimated at 1.29 CAD
Gildan Activewear Inc (GILD)
Revenue reported at 1.195B CAD, estimated at 1.206B CAD
EPS reported at 1.14 CAD, estimated at 1.15 CAD
AltaGas Ltd (ALAD)
Revenue reported at 3.188B CAD, estimated at 2.759B CAD
EPS reported at 0.09 CAD, estimated at 0.14 CAD
Veren Inc (VRND)
Revenue reported at 1.004B CAD, estimated at 978.904M CAD
EPS reported at 0.33 CAD, estimated at 0.45 CAD
Tamarack Valley Energy Ltd (TVED)
Revenue reported at —, estimated at 439.392M CAD
EPS reported at 0.39 CAD, estimated at 0.17 CAD
AEMD - Agnico Eagle Mines Ltd
Revenue reported at 2.906B CAD, estimated at 2.999B CAD
EPS reported at 1.41 CAD, estimated at 1.59 CAD
PKID - Parkland Corporation
Revenue reported at 7.678B CAD, estimated at 7.126B CAD
EPS reported at 0.61 CAD, estimated at 0.60 CAD
IVND - Ivanhoe Mines Ltd
Revenue reported at 119.109M CAD, estimated at 1.12B CAD
EPS reported at 0.12 CAD, estimated at 0.12 CAD
XD - TMX Group Limited
Revenue reported at 350.316M CAD, estimated at 348.55M CAD
EPS reported at 0.39 CAD, estimated at 0.40 CAD
CPXD - Capital Power Corporation
Revenue reported at 635.114M CAD, estimated at 1.03B CAD
EPS reported at 0.93 CAD, estimated at 1.32 CAD
KXSD - Kinaxis Inc
Revenue reported at 166.057M CAD, estimated at 164.438M CAD
EPS reported at 0.81 CAD, estimated at 1.07 CAD
BHCD - Bausch Health Companies Inc
Revenue reported at 3.338B CAD, estimated at 3.492B CAD
EPS reported at 1.41 CAD, estimated at 1.59 CAD
SESD - Secure Energy Services Inc
Revenue reported at 345.325M CAD, estimated at 374M CAD
EPS reported at 0.22 CAD, estimated at 0.39 CAD
TOYD - Spin Master Corp
Revenue reported at 1.176B CAD, estimated at 1.248B CAD
EPS reported at 2.21 CAD, estimated at 2.16 CAD
AP.UND - Allied Properties REIT
Revenue reported at 150.7M CAD, estimated at 146.593M CAD
BDGID - Badger Infrastructure Solutions Ltd
Revenue reported at 284.051M CAD, estimated at 283.304M CAD
EPS reported at 0.95 CAD, estimated at 0.92 CAD
US Markets
MSFT - Microsoft Corp.
Revenue reported at 64.569B USD, estimated at 65.585B USD
EPS reported at 3.10 USD, estimated at 3.30 USD
META - Meta Platforms, Inc.
Revenue reported at 40.213B USD, estimated at 40.589B USD
EPS reported at 5.22 USD, estimated at 6.03 USD
MRK - Merck & Company, Inc.
Revenue reported at 16.474B USD, estimated at 16.657B USD
EPS reported at 1.48 USD, estimated at 1.57 USD
LIN - Linde PLC
Revenue reported at 8.39B USD, estimated at 8.356B USD
EPS reported at 3.90 USD, estimated at 3.94 USD
UBER - Uber Technologies, Inc.
Revenue reported at 10.988B USD, estimated at 11.188B USD
EPS reported at 0.37 USD, estimated at 1.20 USD
CMCSA - Comcast Corporation
Revenue reported at 31.78B USD, estimated at 32.07B USD
EPS reported at 1.07 USD, estimated at 1.12 USD
ETN - Eaton Corporation, PLC
Revenue reported at 6.373B USD, estimated at 6.345B USD
EPS reported at 2.80 USD, estimated at 2.84 USD
COP - ConocoPhillips
Revenue reported at 13.974B USD, estimated at 13.6B USD
EPS reported at 1.65 USD, estimated at 1.78 USD
BMY - Bristol-Myers Squibb Company
Revenue reported at 11.264B USD, estimated at 11.9B USD
EPS reported at 1.49 USD, estimated at 1.80 USD
Fun Fact
👻Halloween is a holiday that beautifully combines elements from the ancient Celtic festival of Samhain and early Christian traditions. Samhain, celebrated by the Celts on October 31, marked the end of the harvest and the beginning of winter—a time when people believed that the boundary between the living and the dead blurred, allowing spirits to roam. Celts would dress in costumes and light bonfires to ward off wandering spirits.
☠️When Christianity spread through Celtic regions, the Church adapted these traditions, establishing All Saints' Day on November 1 to honour saints and martyrs, and All Hallows' Eve on October 31. Over time, this blending of beliefs formed Halloween, incorporating both the mystical customs of Samhain and the religious observance of honouring the dead, resulting in a holiday that celebrates mystery, remembrance, and community.
Investment Tip
🎃Think of your portfolio as a candy bucket! Just like trick-or-treaters want a good mix of candy, your investments should be well-diversified. You don’t want a bucket full of just one kind of "candy" (or stock) because if that stock goes sour, it could ruin your whole haul. Instead, add a variety of “treats” – some blue-chip stocks, a sprinkle of growth companies, maybe a few bonds, and even a dividend stock or two for long-term sweetness. This way, if one “treat” doesn’t work out, you’ll still have plenty of others to enjoy!
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.