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TSX Rallies as US Jobs Cool; Scotiabank Misses Expectations; BMO Profits Rise

Published 2023-08-29, 02:26 p/m
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By Ketki Saxena

Investing.com -- Canada's main stock index, the S&P/TSX Composite index opened on a weak note but reversed course by midday. The TSX tracked Wall Street higher as U.S. job openings fell for a third straight month in July, an indicator of a weakening job market that could push the Federal Reserve to slow down or pause interest rate hikes.

The commodity-heavy Canadian index gained further support from crude prices as the US dollar index retreated following the jobs data.

Toronto Stock Markets News

Scotiabank 's (TSX:BNS) third-quarter profit fell compared with a year ago as its provision for credit losses nearly doubled. The bank's net income amounted to $2.21 billion or $1.72 per diluted share for the quarter ended July 31, down from $2.59 billion or $2.09 per diluted share a year earlier. Scotiabank's revenue for the quarter totalled $8.09 billion, slightly up from $7.80 billion during the same period last year. Its provision for credit losses totalled $819 million in its latest quarter, nearly doubling from $412 million in the same quarter last year.

BMO (TSX:BMO) reported a slight increase in its third-quarter profit compared to the same quarter last year. The bank's net income was $1.45 billion or $1.97 per diluted share, up from $1.37 billion or $1.95 per diluted share a year earlier. Revenue totalled $7.93 billion, marking an increase from $6.10 billion in the same quarter last year. However, BMO's provision for credit losses totalled $492 million, a significant rise from $136 million in its third quarter last year.

Canada's largest diversified miner, Teck Resources (TSX:TECKa) Ltd., may soon announce a more direct plan to separate its coal assets from its metals unit, according to an analyst at the Bank of Nova Scotia analyst Orest Wowkodaw. In April 2023, Teck decided to revise its initial separation plan due to the anticipated lack of sufficient shareholder support. The new plan might involve a partial sale of its coal assets. "In our view, a partial sale of the business to a consortium of buyers is a more probable scenario. This structure would also likely eliminate the requirement for a shareholder vote,” Wowkodaw said in a note to clients on Tuesday.

View all released and upcoming earnings reports on our earnings calendar.

Canadian Stocks Moving Markets Today

Top Gainers on the TSX Today:

Top Losers on the TSX Today:

  • Fairfax Financial (TSX:FFH)
  • Gfl Environmental Holdings Inc (TSX:GFL)
  • NexGen Energy (TSX:NXE)

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