By Ketki Saxena
Investing.com -- At 9:50 a.m in Toronto, the S&P/TSX Composite Index was at 19,558.06 points, down 0.68% in the days’ trading after the Civic Holiday long weekend, tracking U.S. and global equities lower as risk-off sentiment dominated markets this morning.
Risk-off sentiment defined markets this morning as concerns of an ongoing recession were exacerbated yesterday following Purchasing Managers Indices from Europe and China that suggested factory activity contracted. Investor sentiment was also weighed by the possibility of an aggravation in China-U.S. tension as House Speaker Nancy Pelosi heads to Taiwan despite strongly worded expressions of its displeasure from Beijing.
Further losses on the commodity heavy Canadian index were capped by a (relative) rebound in crude, following heavy losses over the long weekend that saw the commodity tumble over $10 a barrel from $102 on Friday.
The crude market is currently being supported by OPEC’s unwillingness and likely inability to further boost output as producers struggle to meet existing quotas. Investors will await further direction from tomorrow’s OPEC+ meeting.
Canadian Stocks To Watch Today
The big news today on Bay Street today is TD’s planned acquisition of New York-based boutique investment bank and brokerage Cowen in a $1.3 all cash billion deal, designed to boost the Canadian big bank’s presence in the high-growth U.S market. The companies expect the deal to close in the first quarter of 2023..
Air Canada posted a smaller quarterly loss and forecast higher full-year expenses, amidst a rise in labor costs and jet fuel prices. Air Canada reported an operating loss of C$253 million, compared with a loss of C$ 1.13 billion a year earlier.
Operating revenue meanwhile quintupled to C$3.98 billion from C$837 million last year. However the company is still struggling with supply and demand fundamentals. While advance ticket sales in the second quarter were at 94% of 2019 levels, capacity remains at just 73% of 2019 levels as the carrier struggles to ramp up capacity in the aftermath of the Covid-19 pandemic.
Other Bay Street news included an update (sort of) on the planned takeover offer for Yamana Gold (TSX:YRI) by Gold Fields, as the latter company’s CEO told reporters at a Mining Conference in Australia that the deal was still a “work in progress” when asked if investors and shareholders were on board with the deal.
A major analyst upgrade today meanwhile included CIBC (TSX:CM) raising its target price on Precision Drilling Corp to C$120 from C$115, citing acquisition of well servicing and rental assets from High Arctic.
Major TSX Earnings Expected Today
- Capital Power Corporation (TSX:CPX): Expected Q2 earnings of 53 Canadian cents per share
- Ero Copper (TSX:ERO) Corp: Expected Q2 earnings of 47 cents per share
- Gibson Energy (TSX:GEI) Inc: Expected Q2 earnings of 27 Canadian cents per share
- Sprott Inc . (TSX:SII) Expected Q2 earnings of 38 cents per share
- Waste Connections Inc (TSX:WCN): Expected Q2 earnings of 95 cents per share