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TSX Rallies; Canadian Jobs Blow Past Expectations; Enbride Inks Mainline Deal

Published 2023-05-05, 03:36 p/m
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By Ketki Saxena 

Investing.com – The TSX tracking Wall Street higher today as Apple (NASDAQ:AAPL) earnings boosted tech, and as a better than expected US jobs report helped stave off worries that a recession may be imminent in the world’s largest economy. 

The commodity heavy Canadian index was also supported by gains in crude, also supported by the US jobs report and receding fears of economic slowdown. Crude however closed the week at a loss (for the third consecutive week) as interest rate hikes, slowing Chinese demand, and US banking sector worries continued to stoke global growth fears. 

The Biggest Stories on Bay Street 

Enbridge reported a first quarter profit of $1.7 billion on Friday, down from $1.9 billion a year ago. Profit amounted to 86 cents per share, down from 95 cents per share in the same quarter a year earlier. Enbridge (TSX:ENB) also announced that it has successfully completed negotiations for the US and Canadian sections of the Mainline pipeline system, which will help protect the company from competition once the Trans Mountain pipeline expansion opens.  The Mainline network is Canada's largest oil pipeline system, transporting about 70% of total oil pipeline capacity from Western Canada.

Air Canada (TSX:AC) raised its earnings outlook, now expecting adjusted earnings before interest, taxes, depreciation and amortization for 2023 between $3.5 billion and $4 billion, up from the  $2.5 billion and $3 billion range expected in February. The earnings boost is expected as demand rebounds and fuel prices are to be lower than expected. Air Canada posts its first quarter 2023 results on May 12. 

Magna International (TSX:MG) reported a profit of US$209 million or 73 cents per diluted share for the quarter ended March 31, compared to US$364 million or $1.22 per diluted share a year earlier. Revenue totalled US$10.67 billion, up from US$9.64 billion in the first three months of 2022. Magna Intl. Also raised its outlook for the full year 2023, now expecting sales between US$40.2 billion and US$41.8 billion, compared to earlier expectations for between US$39.6 billion and US$41.2 billion.

Canadian Stocks Moving Markets Today

Top Gainers:

  • Open Text (TSX:OTEX)
  • Air Canada (TSX:AC)
  • Pason Systems (TSX:PSI)

Top Losers:

  • Altus Group (TSX:AIF)
  • Telus (TSX:T)
  • Badger Infrastructure (TSX:BDGI)

In Canadian Economics 

The Canadian labour market blew past expectations once again in April, adding 41,400 jobs - more than double the 20,000 new positions expected by economists – marking the fifth consecutive month of above expected gains. Unemployment held near a record low of 5.0 per cent, while wage growth came in at 5.2%. 

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