By Ketki Saxena
Investing.com -- At 11:10 a.m in Toronto, the S&P/TSX Composite Index was at 19,610.47 points, down 0.55% in the day’s trading, tracking US equities lower as a economic data including retail sales and jobless claims reiterated strength in the US economy, and reinforced the case for aggressive moves from the Fed in September and subsequently.
The Canadian index was also pressured by losses in crude, as brent fell over 3% this morning on expectations of weaker demand pressured by rate-hikes expectations that boosted the U.S. dollar and that is expected to weigh heavily on economic output. The International Energy Agency said earlier this week that oil demand growth is expected to stagnate in the fourth quarter of this year.
Oil was further pressured by late-night deal between the Biden administration and U.S. unions to avert a U.S railroad strike that would have hit fuel (and food) supplies.
Gold also faced its third consecutive of declines, hovering just a few dollars about its yearly low, as the US dollar retests a record high buoyed by Fed rate hike expectations.
The Biggest Stories on Bay Street
Scotiabank (TSX:BNS) reiterated its confidence in Cineplex as moviegoers continue to stream into cinemas following the post-pandemic recovery. Scotia analyst Maher Yaghi reiterated his outperform rating on the stock, with a price target that implies a 58% upside to Cineplex’s current trading price over the next 12 months. “What continues to keep us bullish on Cineplex is the improving movie release schedule as we head into Q4. We expect strong box office revenues backed by multiple highly anticipated movies, including ‘Black Adam,’ ‘Black Panther,’ and ‘Avatar,’” Yaghi said.
Empire company, parent of grocery chain Sobey’s released first quarter results today before the opening bell, reporting a profit of $187.5 million and EPS of 71 cents per share, compared to a profit of $188.5 million or 70 cents per diluted share a year ago. Sales rose 4.1 per cent compared with a year ago, driven by increased fuel sales, higher food inflation and the expansion of its FreshCo banner in Western Canada.
Canadian Stocks Moving Markets This Morning
Top Gainers:
- First Capital (+3.74%)
- Air Canada (+2.40%)
- Aecon Group Inc (+2.31%)
Top Losers:
Canadian Economics
National home sales fell 1% on a monthly basis in August, the Canadian Real Estate Association, less than the 1.6-per-cent decline economists had been forecasting. The MLS Home Price Index edged down 1.6% month-over-month but remained 7.1% higher than this time last year.
A new study by JD power showed today that Canadians are decreasing their spending on primary credit cards as inflation remains high and interest rates rise sharply. The survey of 6,478 Canadian credit cardholders released Thursday found the average consumer spent $1,144 per month on their primary card this year, $11 less than a year ago. Interestly, cash, debit and other non-credit card-related spending is up 51% this year.