By Ketki Saxena
Investing.com -- The TSX and Wall Street remained positive this morning as strong earnings from Goldman Sachs (NYSE:GS) and Johnson & Johnson (NYSE:JNJ) buoyed investor sentiment, with earnings seasons taking the focus of Federal Reserve expectations for the moment.
Benchmark US yields continued to retreat, supporting growth stocks. Investors will also be awaiting results from Netflix (NASDAQ:NFLX) today after the close, and Tesla (NASDAQ:TSLA) later this week.
Further gains on the commodity-heavy Canadian index were capped by losses in crude, weighed by increasing concerns of a global slowdown, particularly as China delayed the release of economic indicators including GDP. The delay in the figures, which were originally scheduled for today raise concerns the data is negative, and traders are betting on demand destruction in the world’s top importer of crude.
The Biden administration also announced plans to sell oil from the Strategic Petroleum Reserve before next month's congressional elections, further pressuring the commodity.
Canadian Stocks Moving Markets This Morning
Top Gainers:
- IAmGold (+17.01%)
- Bombardier (TSX:BBDb)
- Innergex Renewables
Top Losers:
The Biggest Stories on Bay Street
Former Finance Minister Bill Morneau will join the board of the Canadian Imperial Bank of Commerce. Morneau served as Trudeau’s finance chief from 2015 to 2020, when he resigned in a public rift with the prime minister over spending on COVID-19 programs. Before joining the government.
Iamgold will sell its 95% stake in Rosebel Gold Mines to Chinese company Zijin Mining Group Co. Ltd. for US$ 360 million in cash. Under the terms of the agreement, Iamgold will also be released from about US$ 41 million in obligations for certain equipment leases. Rosebel owns the Rosebel gold mine in Suriname and a 70% participating interest in the Saramacca Mine, also located in the South American country.
Enbridge (TSX:ENB) said yesterday that it has reached an agreement on penalties over its Line 3 oil pipeline replacement project and that it will pay $11 million to various Minnesota regulators and the Fond du Lac Band of Lake Superior Chippewa. Enbridge said $7.5 million of the total will be used to provide financial assurances and fund multiple environmental and resource enhancement projects. The company will adhere to one year of compliance with state water rules.
Bank of Nova Scotia (TSX:BNS) announced yesterday that it had sold US$750 million of loss-absorbing hybrid securities as concerns mount around emerging marked economies as recession worries dominate. Scotiabank generated almost a third of its revenue from its Latin America-focused international unit in its most recent fiscal year.
In Canadian Economics
Canada Mortgage and Housing Corp. reported the seasonally adjusted annual rate of housing starts for September was 299,589 units, up 11% from 270,397 in August. The increase was driven largely by urban starts rose 12% to 276,142 in September.
Statistics Canada’s International securities transactions for August showed that Foreign investment in Canadian securities growth accelerated in August, reaching $22.0 billion. Canadian investors reduced their holdings of foreign securities by $1.4 billion.
Scotiabank reiterated its call for a global recession, with Scotia’s Chief Economist Jean-François Perrault saying that Canada too is in for two consecutive quarters of negative growth, a technical definition of a recession, in 2023. Scotia also hiked its view of the Bank of Canada’s terminal rate to 4.25% by year’s end, from its previous call of 3.75%/