By Ketki Saxena
Investing.com -- While US indices traded on a mixed note following dismal beats by tech mega caps, the Canadian index continued to rally after a smaller-than-expected interest rate hike from the Bank of Canada.
The Canadian central bank raised rates 50 basis points, rather than the outsize 75 bp move that had been widely expected by economists and priced into markets.
The commodity-heavy Canadian index was also boosted by gains in metals and crude, as a commodity was supported by a weaker US dollar and a paring back in Fed rate hike bets that eased worries of slowing industrial output and demand. For crude, these easing concerns have once again brought the forefront worries of tight supply due to OPEC+ cuts and upcoming EU embargoes on Russian oil
The Biggest Stories on Bay Street
CN Rail reported that revenue rose to $4.51 billion for the quarter compared to $3.59 billion last year. CN Also lhiked its outlook for the year, now expecting free cash flow of about $4.2 billion for the year, compared to up to $4 billion it had forecast in its April guidance. CN now expects to deliver adjusted, diluted earnings per share growth of about 25% this year, compared to its earlier forecast for 15-20%.
Crescent Point Energy Corp (TSX:CPG) reported blowout results today, announcing Q3 net income of $466.4 million, up from $77.5 million last year. On an adjusted basis, net earnings from operations amounted to 43 cents per share, up from 24 cents per share in the same quarter last year. The company also announced a special dividend of 3.5 cents per share based in addition to its regular quarterly dividend of eight cents per share.
The Rogers Communications/Shaw/Quebecor/Freedom Mobile deal is facing yet another regulatory hurdle. Minister of Innovation, Science and Industry François-Philippe Champagne has officially rejected the transfer of wireless spectrum licenses between the two companies, which are needed to approve the Rogers takeover of Shaw. Champagne will only allow the deal to move forward if Quebecor (TSX:QBRa) agrees to hold Freedom's wireless spectrum licenses for at least ten years after the deal is finalized.
Canadian Stocks Moving Markets Today
Top Losers:
In Canadian Economics
The Bank of Canada raised its Benchmark Rate by 50 bps to 3.75%, less than the 75 bps move than had been expected by economists. The Bank is also continuing its policy of quantitative tightening, and announced the policy rate will need to rise further.
The Bank expects CPI back at its 2% target by the end of 2024, and at 3% by the end of next year.
GDP growth is projected to slow from 3.25% this year to just under 1% next year and 2% in 2024.