By Ketki Saxena
Investing.com -- The TSX opened sharply higher this morning, tracking Wall Street’s rally U.S. CPI data showed a slower-than-expected rise in inflation last month, prompting traders to pare back bets on a third consecutive 75bps interest rate hike in September.
U.S. annual consumer prices slowed to 8.5% in July, below economist expectations for an 8.7% increase, and lower than last month's scorching hot 9.1% reading.
The TSX was also buoyed by largely upbeat earnings. Here’s a look at some of the biggest stories on Bay Street and Canadian stocks to watch today.
The Biggest Stories on Bay Street
- West Fraser Timber (TSX:WFG): announced it is permanently slashing 255 million board feet of production capacity at three mills in British Columbia as a result of increasingly challenged access to timber and transportation problems. The shutdown will result in the loss of 147 jobs.
- Metro (TSX:MRU): reported a third-quarter profit of $275 million, up from $252.4 million a year earlier, as sales gained 2.5%. "We are pleased with the performance of our food and pharmacy businesses in the third quarter, which was achieved in a challenging operating environment with increasing inflationary pressures as well as ongoing labor shortages that are impacting the supply chain and our operations.
- Stella Jones (TSX:SJ): saw sales increased soar due to 10% organic growth for infrastructure-related businesses, despite the normalization of residential lumber sales. Éric Vachon, President and CEO of Stella-Jones noted that “While inflationary pressures impacted costs of all product categories, we continued to successfully implement contractual price adjustments and generate healthy margins, underscoring the strength of our business model."
- ATS Automation (TSX:ATA): Adjusted basic earnings per share were $0.64 compared to $0.48 a year ago. Andrew Hider, Chief Executive Officer noted that “The first quarter featured record revenues, Order Bookings, Order Backlog and growth in profitability metrics due to ATS' presence in strategic markets, on-plan contributions from recent acquisitions and the diligent application of the ATS Business Model”
- Centerra Gold (TSX:CG): reported a net loss of US$2.6 million in its latest quarter, compared to a net loss of US$851.7 million in the same quarter last year. The Toronto-based company, which keeps its books in U.S. dollars, said the decrease in net loss was primarily due to the loss of US$926.4 million recognized on the change of control of the Kumtor Mine in the second quarter of 2021.
- Boyd Group (TSX:BYD): delivered higher second-quarter profit and revenue, despite unfavourable macroeconomic conditions. Adjusted net earnings per share increased to $0.63, compared with $0.53 in the same period of 2021, with growth driven “Supported by strong same-store sales growth in both Canada and the U.S. as well as solid contributions from new location growth, glass and calibration services”, as noted by President and CEO Timothy o'Day
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TSX Earnings Expected Latest in the Session
- Manulife Financial (TSX:MFC) Corp: Expected Q2 earnings of 76 Canadian cents per share
- Stelco (TSX:STLC) Holdings Inc: Expected Q2 earnings of C$4.36 per share
- Franco-Nevada Corp (TSX:FNV) Expected Q2 earnings of 98 cents per share
- Badger Infrastructure Solutions Ltd (TSX:BDGI): Expected Q2 earnings of 20 Canadian cents per share
- Birchcliff Energy Ltd . (TSX:BIR): Expected Q2 earnings of 60 Canadian cents per share
- CCL Industries (TSX:CCLb) Inc: Expected Q2 earnings of 86 Canadian cents per share
- Fortuna Silver Mines (TSX:FVI) Inc: Expected Q2 earnings of 8 cents per share
- Pan American Silver Corp (TSX:PAAS): Expected Q2 earnings of 15 cents per share
- Russel Metals Inc . (TSX:RUS): Expected Q2 earnings of C$1.46 per share
- Stantec (TSX:STN) Inc: Expected Q2 earnings of 80 Canadian cents per share
Today’s TSX Analyst Upgrades and Downgrades
- Hudbay Minerals (TSX:HBM) Inc: Scotiabank (TSX:BNS) raises target price to C$8 from C$7.5, to reflect the company’s in-line second-quarter results.
- Recipe Unlimited Corp (TSX:RECP): CIBC (TSX:CM) raises target price to C$20.73 from C$16, saying Fairfax’s offer for the company is appropriately valued.
- Spartan Delta Corp (TSX:SDE): National Bank of Canada (TSX:NA) raises target price to C$22.5 from C$20, after the company’s second-quarter results beat estimates.
- Total Energy Services Inc . (TSX:TOT): ATB Capital Markets raises target price to C$14.5 from C$13.5, following the company’s strong second-quarter results.
- Triple Flag Precious Metals Corp (TSX:TFPMu) CIBC cuts target price to C$21 from C$23, citing uncertainties over the Pumpkin Hollow and Gunnison projects
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