S&P/TSX composite reverses early gains to end lower, U.S. stock markets also down

TORONTO –

Falling commodity costs and blended company earnings helped push down Canada’s predominant inventory index Thursday, whereas U.S. inventory markets additionally fell.

“It’s a pretty earnings-driven market,” mentioned Ryan Crowther, a portfolio supervisor at Franklin Bissett Investment Management in Calgary.

“At either end of the spectrum you’ve got you’ve got certain companies that have surprised to the upside or the downside, and (are) influencing the TSX.”

The blended image meant morning positive aspects reversed because the day went on.

The S&P/TSX composite index ended down 81.79 factors at 20,597.75 after buying and selling as excessive as 20,821.66 earlier within the day.

Losses amongst key subindexes had been modest however throughout the board.

The telecom index was down 1.4 per cent as Telus Corp. dropped 3.8 per cent after reporting outcomes the place earnings got here in beneath expectations.

Health care was down 3.6 per cent as hashish producer Canopy Growth Corp. fell 16.6 per cent after asserting layoffs and a restructuring because it reported earnings that additionally missed expectations.

Uranium producer Cameco Corp. noticed its share worth climb 4.6 per cent as traders welcomed its quarterly outcomes and outlook for increased demand forward.

Company incomes outcomes had been additionally blended in New York, the place the Dow Jones industrial common closed down 249.13 factors at 33,699.88. The S&P 500 index was down 36.36 factors at 4,081.50, whereas the Nasdaq composite was down 120.94 factors at 11,789.58.

Overall, increased rates of interest and different issues are beginning to present up in firm efficiency, even when some are weathering it higher, mentioned Crowther.

“We’ve had some companies come through with surprising resilience in the face of emerging economic headwinds, but if you compare calendar Q4 to the previous couple of quarters, we’re seeing more cases where this weakening environment is taking its toll on earnings.”

While headwinds are rising, they are not but absolutely displaying up in some firm valuations, he mentioned.

“Many equities do remain overvalued in our opinion, given the current environment. I’d expect that there’s going to be opportunities for investors, as many companies face a challenging year and could see increased volatility in the weeks to come.”

The Canadian greenback traded for 74.48 cents US in contrast with 74.47 cents US on Wednesday.

The March crude contract was down 41 cents at US$78.06 per barrel and the March pure fuel contract was up 34 cents at US$2.43 per mmBTU.

The April gold contract was down US$12.20 at US$1,878.50 an oz and the March copper contract was up six cents at US$4.10 a pound.

This report by The Canadian Press was first printed Feb. 9, 2023