By Ketki Saxena
Investing.com -- At 10:05 a.m in Toronto Toronto, the S&P/TSX composite index was at 19,295.22 points, down 1.31% in the day’s trading, tracking Wall Street lower on ongoing concerns of an aggressive move from the Fed later in September. North American equities were also pressured by a disquieting outlook from Fed Ex (NYSE:FDX), as it drastically cut its full-year forecast “as macroeconomic trends significantly worsened later in the quarter (which ended Aug. 31),”
The Canadian index was also pressured by crude prices. Despite a moderate rebound today as investors bought the dip following yesterday’s brutal sell-off, crude remains set for a weekly decline as the demand outlook remains bleak for the fourth quarter. Both the World Bank and the International Monetary Fund warned Thursday of an impending global economic slowdown in late 2022 and 2023, following similar calls from the EIA earlier in the week.
The Biggest Stories on Bay Street
Shopify (TSX:SHOP) Inc. today announced the launch of a new proprietary software for employees called “Flex Comp”, designed to give employees the flexibility to choose in the mix of cash and equity they are paid. After receiving their total compensation, employees will be able to adjust the allocation as per their personal preferences, without relying on external payroll or stock-vesting tools.
Pentwater Capital Management LP announced it has upped its stake in Turquoise Hill Resources Ltd. (TSX:TRQ) to 13.77%, purchasing an additional 2.5 million Turquoise Hill shares. The company is bracing for Rio Tinto’s planned deal to take Turqoise Hill private, which Pentwater (a minority stakeholder in the Canadian miner) believes undervalues the company. Pentwater does not support the planned takeover.
Shawcor meanwhile announced a planned buyback of up to 10% of its common shares up to a maximum of $25 million in aggregate repurchases. Shawcor plans to begin the Bid on or about September 28, 2022, and conclude the bid in a year, or earlier.
Investors will also want to keep an eye on Dye & Durham (TSX:DND) stock today (although unrelated to its much-headlined Link acquisition. The company released underwhelming preliminary fourth-quarter revenue forecasts today, as well as adjusted earnings that fell below average analyst expectations.
Iamgold will be another stock to watch today, after the company quietly announced the departure of its Chief Financial Officer, Daniella Dimitrov. In the news release, the company did not announce a reason for her departure and noted that the company’s finance VP will serve as interim CEO.
In Canadian Economics
In July, both foreign investment in Canadian securities and Canadian investment rebounded following significant divestments in June, as per Statistics Canada. Foreign investors acquired $14.8 billion of Canadian securities, compared to the $17.6-billion in divestments in June. The investments were largely in debt instruments, with StatsCan noting the appeal of U.S. dollar-denominated issuances by Canadian banks. Canadian investors meanwhile added $4.3 billion of foreign securities to their holdings.
StatsCan also released wholesale sales data today, which fell 0.6% in July to $80.2 billion following two months of record sales. Sales fell in five of seven subsectors, which represented 63% of wholesale sales. Declines were led by the personal and household goods subsector, followed by the building material and supplies, and the motor vehicle and motor vehicle parts and accessories subsectors.
Canada Mortgage and Housing Corp meanwhile announced housing starts for August, while fell 3% compared to July. Multi-unit urban starts declined 4% while single-detached urban starts increased 1%.