By Ketki Saxena
Investing.com -- At 10:10 am in Toronto, the S&P/TSX Composite Index was at 19,738.89 points, up 1.66% in the day’s trading, tracking Wall Street higher as it was boosted by tech and high-growth stocks.
Despite hawkish comments from the Fed - and the Bank of Canada following its 75 bps hike on Wednesday- investors appear to be discounting hawkish speak ahead of next week’s key US inflation data. A sharp fall in commodity prices this month adds further viability to the notion that inflation has peaked, or is close to peaking, allowing the Fed leeway to slow its pace of tightening.
The commodity heavy Canadian index was also supported by gains in crude as the dollar saw a sharp correction, appearing, like equity markets, to shrug off hawkish Fed speak. Crude however is still on track for its lowest weekly close in seven months, pressured by extended lockdowns in China’s Chengdu, and the by now usual fears of slowing global demand driven by aggressive rate-hikes from global central banks.
The Biggest Stories on Bay Street
The positive news is that Dollarama beat earnings on the top and bottom lines – revenue came in at $1.22 billion, adjusted earnings per share at $0.66. On the downside, The company says average transaction size fell 5.8 per cent in the quarter, as inflation continues to cut into consumer spending, and as shoppers shifted their focus to lower-priced “consumables”, like food and other essentials.
Shopify (TSX:SHOP) announced yesterday that it will be replacing two of its top executives, indicating serious changes as the company struggles to regain its pandemic driven growth. My Shapero, Shopify’s chief financial officer, will step down in late October. She will be replaced by veteran investment banker Jeff Hoffmeister, who spent more than two decades at Morgan Stanley (NYSE:MS) and led a number of high profile deals, including Shopifu’s 2015 IPO. Toby Shannan will also be retiring as COO, and joining the company board of directors. He will be replaced by Kaz Nejatian, the company’s VP of product.
Canadian Stocks Moving Markets This Morning
Top Losers:
- Enghouse Systems (-9.22%)
- Corus Entertainment (TSX:CJRb) (-9.22%)
- Canfor (TSX:CFP) Corporation (-1.58%)
In Canadian Economics
The biggest story in Canadian economics today is the Canadian jobs report. Statistics Canada reported that the domestic economy lost 40,000 jobs in August, missing expectations for an increase of 15,000 positions. The Unemployment rate jumped to 5.4% from 4.9%, while wages grew 5.4% year over year.
In other news, Bank of Canada senior deputy governor Carolyn Rogers, speaking at the Calgary Economic Development forum yesterday, reiterated the Bank of Canada’s commitment to raising rates in order to cool inflation and a (still) overheated economy.