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TSX Rallies; Nordstrom to Exit Canada; Domestic Economic Data Weak

Published 2023-03-03, 01:06 p/m
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By Ketki Saxena 

Investing.com – The Canadian index tracked Wall Street higher this morning as Treasury yields pulled back as risk appetite was boosted by strong US PMI data,  although expectations for Federal Reserve rate hikes remain high. 

The Canadian index also gained support from commodity prices, including crude prices, on anticipation of China’s reopening. 

The Biggest Stories on Bay Street

Nordstrom Inc (NYSE:JWN).  will be winding down its operations in Canada, closing all its Canadian stores and slashing 2,500 jobs as it plans its exit from the country by late June.. The retailer has six Nordstrom and seven Nordstrom Rack stores in Canada. Chief executive Erik Nordstrom addressed the decision, noting. "Despite our best efforts, we do not see a realistic path to profitability for the Canadian business”. The decision to shut Canadian operations is designed to “Simplify our structure, intensify focus on our growth and profitability goals and position us to create greater value for our shareholders."

SNC-Lavalin Group Inc reported a loss from continuing operations attributable to shareholders of $54.4 million or 31 cents per share for the quarter ended Dec. 31. The result compared with a loss of $15.3 million or nine cents per share in the last three months of 2021. Revenue totalled $1.90 billion, down from $1.94 billion a year earlier. SNC also announced it will conduct strategic review to optimize its portfolio of businesses, focusing on its engineering services, nuclear and operation and maintenance businesses.

Canadian Stocks Moving Markets Today 

Top Gainers: 

  • Park Lawn (TSX:PLC)
  • Algoma Steel Group Inc (TSX:ASTL)
  • Sleep Country Canada Holdings Inc (TSX:ZZZ)

Top Losers: 

  • Pason Systems Inc . (TSX:PSI)
  • Pet Valu Holdings Ltd (TSX:PET)
  • Enghouse Systems Ltd (TSX:ENGH)

In Canadian Economics

The labour productivity of Canadian businesses fell 0.5% in the fourth quarter, a third consecutive quarterly decline. Business output declines for the first time in six quarters, while growth in hours worked decelerated. 

Canadian building permits continued to fall in January, down 4.0% from the month before, to a seasonally adjusted $9.78 billion. Market expectations were for a rise of 1% after the data after a 7.3% fall in permits for December. On a year-over-year basis, the overall value of permits issued in January was down by 5.0%.

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