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TSX in the Red as US Midterms too Close to Call; Crude Weighs

Published 2022-11-09, 10:10 a/m
© Reuters.
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By Ketki Saxena 

Investing.com --- After its highest close in nearly two months yesterday, the TSX traded well in the red this morning, following Wall Street Lower as US midterm elections remained too close to call.

While Republicans made modest gains, Democrats did better than expected, a dampener on investor sentiment. Historically, when a democrat is in the White House, stocks tend to do better under a split government. 

The commodity-heavy Canadian index was also pressured by sliding oil prices as US crude stockpiles rose more than expected. Crude prices were also pressured by a surge in COVID-19 cases in China, which tempered hopes for a full reopening in the country and reignited worries of demand destruction. 

The Biggest Stories on Bay Street

TC energy posted net profit of $841 million, or 84 cents per share, for the third quarter, compared to $779 million, or 80 cents per share this time last year, or 8% higher. Revenue from its Canadian and U.S. natural gas pipelines totalled $1.12 billion, up from $1 billion this time last year.  TC also plans to sell $5 billion worth of assets to repay debt and fund new projects.

Rogers posted a profit of  $371 million or 71 cents per diluted share in net income for the third quarter, down from $490 million or 94 cents per diluted share in the same quarter last year. Revenue totalled $3.74 billion, slightly higher than $3.67 billion in q3 2021. Rogers says total revenue would be up 6% year over year, had the company not had to hand out credits it gave customers due to the massive network outage in July. 

Intact FInanical posted a profit of $370 million or earnings of $2.02 per share for the third quarter, up from $300 million or $1.60 per share for the same quarter last year. Total revenue was $5.39 billion, up from $5.35 billion for the same quarter a year earlier. The company attributed the decline to inflation pressures and higher weather-related losses in personal lines. 

Canopy Growth (TSX:WEED) posted a net loss of  $231.9 million or 47 cents per diluted share for the third quarter, compared with a net loss of $16.3 million or three cents per share a year ago. Revenue totalled $117.9 million, down from $131.4 million in the same quarter last year. The company said the drop in revenue was, in part, due to increased competition in the Canadian adult-use cannabis market, 

A jury in a Minnesota bankruptcy court has found the U.S. arm of Bank of Montreal (TSX:BMO) liable for US$564 million in damages in a lawsuit related to Thomas Joseph Petters, who was convicted in 2008 of leading a nearly $2 billion fraud and was a client of a bank later acquired by BMO. The jury held BMO guilty of “aiding and abetting breach of fiduciary duty”. BMO is planing to appeal the decision. 

Canadian Stocks Moving Markets This Morning 

Top Gainers: 

  • Equitable Group Inc. (TSX:EQB)

  • Canopy Growth Corp (TSX:WEED)

  • IAMGold Corporation (TSX:IMG)

Biggest Losers: 

  • ATS Automation Tooling Systems Inc. (TSX:ATA)

  • Pan American Silver Corp (TSX:PAAS)

  • Nuvei Corp (TSX:NVEI)

In Canadian Economics 

No major Canadian Economic Data expected today 

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