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TSX Declines; Canada Goose, Lightspeed Decline on Weak Forecasts

Published 2023-05-18, 01:31 p/m
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By Ketki Saxena

Invesitng.com -- The TSX tracked Wall Street lower this morning, as worries surrounding the US debt ceiling limit continue to weigh on investor sentiment. The commodity-heavy Canadian index was also pressured by a decline in gold prices weighed on miners, and a slide in crude as the dollar held near a seven-week high, making the commodity more expensive for holders of other currencies.

The Biggest Stories on Bay Street

Lightspeed shares plummeted after announcing a weaker-than-expected quarterly sales forecast, citing concerns about near-term macroeconomic pressures. This marked the company's most significant single-day decline in more than half a year.

Canada Goose (TSX:GOOS) Holdings loss narrowed in the fourth quarter and revenue soared more than 30%. However, following comments from their CEO concerning challenges in the US market this year, the stock reversed course and saw an over 8% drop in share value.

Brokerage National Bank of Canada (TSX:NA) upgraded its rating on equipment marketplace Ritchie Bros Auctioneers Inc (TSX:RBA.TO) from "sector perform" to "outperform", resulting in a boost for RBA shares.

Canadian Stocks Moving Markets today

Top Gainers:

  • Bausch Health (TSX:BHC)
  • Ritchie Bros Auctioneers (TSX:RBA)
  • Bombardier (TSX:BBDb)

Top Losers: 

  • Lightspeed Commerce (TSX:LSPD)
  • Canada Goose Holdings Inc (TSX:GOOS)
  • Equinox Gold (TSX:EQX)

In Canadian Economics: Bank of Canada Expresses Concern Over Household Debt

The Bank of Canada, in a report today,  voiced increased concern over households' ability to keep up with debt payments compared to last year. According to the review, more families are expected to face financial pressure in the coming years as mortgage renewals become due.

Additionally, the decline in house prices has led to reduced homeowner equity and early signs of financial stress among recent homebuyers. The report also warns that many borrowers will experience a significant increase in payments upon mortgage renewal, with costs projected to rise by a median of 20% between 2023 and 2026 if rates follow current market expectations.

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