TSX Declines; CIBC Earnings; Canadian Federal Government Posts Shrinking Deficit

© Reuters.

By Ketki Saxena

Investing.com – The TSX tracked Wall Street lower this morning, as a sharp rise in the US personal consumption expenditures (PCE) price index - the Federal Reserve’s preferred gauge of inflation - sent treasury yields marching higher and raised bets for the “higher for longer” interest rates narrative.

The commodity heavy Canadian index gained some support from gains in crude on reports that Russia will cut up to 25% of oil exports from its western ports in March, more than the previously announced 500,000 bpd.

The Biggest Stories on Bay Street

CIBC kicked off big bank earning season today, posting a net income of $432 million or 39 cents per diluted share for the quarter ended Jan. 31, down 77% from $1.87 billion or $2.01 per diluted share a year earlier. The hit was mostly related to the previously disclosed US$770 million settlement to Cerberus Capital Management. On an adjusted basis that excluded items such as the settlement, CIBC (TSX:CM) earned $1.84 billion, down 3% from the same quarter a year ago, or $1.94 per share. Revenue for the quarter totalled $5.93 billion, up from $5.50 billion in the same quarter last year.

TD Bank (TSX:TD) Group announced that it has received all the regulatory approvals required for its deal acquire U.S. investment bank Cowen Inc. The acquisition is now expected to close on March 1, subject to other customary closing conditions. TD had announced its deal to buy Cowen in a transaction valued at US$1.3 billion in August 2022 in line with TD Securities’s strategy to accelerate its long-term growth in the U.S.

Canadian Stocks Moving Markets Today

Top Gainers:

• Eldorado Gold Corp (TSX:ELD)
• Advantage Oil & Gas Ltd. (TSX:AAV)
• Spartan Delta Corp (TSX:SDE)

Top Losers:

• First Majestic Silver (TSX:FR)
• Jamieson Wellness (TSX:JWEL)
• Ero Copper (TSX:ERO)

In Canadian Economics

The federal government posted a $5.5-billion deficit during the first nine months of its 2022-23 fiscal year, compared with a deficit of $70.1 billion during the same period a year earlier. Government revenue totalled $310.0 billion for the nine-month period, up from $278.3 billion in the same period a year earlier, while program expenses excluding net actuarial losses amounted to $282.4 billion for the period, down from $322.0 billion a year earlier.