Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.
Equities
Canada’s main stock index fell at Thursday’s open with weakness in crude and metals prices weighing on resource stocks and the Bank of Canada’s aggressive rate hike hitting the financial sector. On Wall Street, indexes were also in the red in the wake of disappointing results from some of the biggest U.S. banks.
At 9:30 a.m. ET, the Toronto Stock Exchange’s S&P/TSX composite index was down 167.11 points, or 0.9 per cent, at 18,448.08.
In the U.S., the Dow Jones Industrial Average fell 320.99 points, or 1.04 per cent, at the open to 30,451.80.
The S&P 500 opened lower by 37.79 points, or 0.99 per cent, at 3,763.99, while the Nasdaq Composite dropped 96.37 points, or 0.86 per cent, to 11,151.21 at the opening bell.
Rate concerns continue to stalk markets after the Bank of Canada surprised by hiking its key policy rate to 2.5 per cent from 1.5 per cent. In the U.S., new figures showed the annual rate of inflation jumped to 9.1 per cent in June, raising speculation that the Fed – which raised rates by three quarters of a percentage point at its last meeting – could follow suit later this month.
“The U.S. inflation report was ugly,” Swissquote senior analyst Ipek Ozkardeskaya said.
“A CPI figure above the 9-per-cent psychological level boosts the idea that the Federal Reserve (Fed) won’t hesitate to continue its aggressive rate increases to abate inflation,” she said. “Pricing on Fed funds futures now gives more than 80-per-cent chance for a 100 basis point hike at the next FOMC meeting, due by the end of this month.”
In this country, Bank of Canada Governor Tiff Macklem is scheduled to speak at a webinar hosted by the Canadian Federation of Independent Business later Thursday. The event is private, but a recording of the conversation will be published online this afternoon.
On the corporate side, U.S. markets get bank earnings ahead of the opening bell.
JPMorgan Chase reported a drop in second-quarter profit as America’s largest bank set aside more money to cover potential losses. The bank posted a profit of US$8.6-billion, or US$2.76 per share, for the quarter ended June 30, compared with US$11.9-billion, or US$3.78 per share, a year earlier. Shares were down more than 4 per cent in early trading in New York.
“Traders were in for a rude awakening today, as [JPMorgan CEO] Jamie Dimon brought home the reality of how earnings season is likely to play out,” IG senior market analyst Joshua Mahony said.
“Despite being well aware of the ongoing risks, markets appeared shocked as the JP Morgan chief laid out the risks posed by inflation, monetary tightening, and Russian influences on food and energy flows. Underperformance from both the bottom-and-top line bank earnings does highlight risks that businesses are already suffering as we seemingly head towards a recession.”
Meanwhile, Morgan Stanley also saw profit slip as volatile markets hit dealmaking. The U.S. bank reported a profit of US$2.4 billion, or US$1.39 per share, for the quarter ended June 30, compared with US$3.4-billion, or US$1.85 per share, a year earlier. Morgan Stanley stock was down more than 2 per cent shortly after the opening bell.
On Bay Street, Cogeco Communications Inc. reported a 5-per-cent increase in net profit to $100.3-million. The Montreal-based company says profit attributable to shareholders was the equivalent of $2.16 per diluted share, up from $2.01 per share or $95.7-million a year earlier. Revenue for the three months ended May 31 was $728.1-million, up 16.6 per cent. The results were released after the close on Wednesday.
Overseas, the pan-European STOXX 600 was down 1.18 per cent by midday. Britain’s FTSE 100 fell 1.11 per cent. Germany’s DAX and France’s CAC 40 were off 1.42 per cent and 1.54 per cent, respectively.
In Asia, Japan’s Nikkei gained 0.62 per cent. Hong Kong’s Hang Seng slid 0.22 per cent.
Commodities
Crude prices fell in early going, weighed down by global economic concerns and a high U.S. dollar.
The day range on Brent is US$97.45 to US$100.39. The range on West Texas Intermediate is US$93.80 to US$97. Both benchmarks were down more than 2 per cent in the predawn period.
“A wrath of economic data, monthly oil reports, and President [Joe] Biden’s trip to the Mideast will weigh on oil prices, but none of this will change how tight the oil market remains right now,” OANDA senior analyst Ed Moya said.
“WTI crude might stay in the mid-US$90s for a while before it makes a return to the US$100 level.”
Crude prices were tempered Thursday by growing expectations that the Fed will hike rates even more aggressively and increased concerns about a possible recession. A higher U.S. dollar, which hit a 20-year high on Wednesday, also hit crude prices, making purchases more expensive for holders of other currencies.
In other commodities, gold prices fell 1 per cent on Thursday, as Treasury yields and the dollar rose.
Spot gold dropped 1 per cent to US$1,718.69 per ounce by early Thursday morning. U.S. gold futures also lost 1 per cent to US$1,717.70.
Currencies
The Canadian dollar reversed course after the previous session’s gains on the back of a bigger-than-expected rate increase by the Bank of Canada as its U.S. counterpart hit its highest level in two decades against a group of world currencies.
The day range on the loonie is 76.53 US cents to 77.11 US cents. The loonie was at the lower end of that spread early Thursday morning.
“If you had a weaker CAD in response to a 100-basis-point hike from the BoC in your playbook, well done. We didn’t,” Shaun Osborne, chief FX strategist with Scotiabank, said.
“Risk aversion is dragging the CAD lower after the BoC’s bold move yesterday on the face of it but, again, we note that despite weak global stocks, there is little sign of real panic in the VIX which is trading comfortably below 30 still.”
Ahead of the opening bell, Statistics Canada said factory sales in May fell 2 per cent. Economists had been forecasting a steeper 2.5-per-cent decline for the month. Statscan says, excluding transportation equipment, manufacturing sales rose 0.2 per cent in May.
On world markets, the U.S. dollar index, which weighs the greenback against a group of currencies, rose a fifth of a percent on the day to 108.500, according to figures from Reuters. The index is up 13 per cent so far this year.
The U.S. dollar advanced more than 1 per cent against the yen, pushing it above 139 yen per dollar for the first time since 1998. It was last up 1.3 per cent at 139.18 yen per U.S. dollar.
Euro fell as much as 0.5 per cent on the day and was last down 0.3 per cent at US$1.00310. On Wednesday, the euro fell below parity with the U.S. dollar for the first time in two decades.
In bonds, the yield on the benchmark 10-year note was up at 2.965 per cent in the predawn period.
More company news
Deutsche Telekom has agreed to sell 51 per cent of its towers business to a consortium of Canada’s Brookfield and U.S. private equity firm DigitalBridge after they placed a surprise US$17.5-billion bid in the auction’s final stages. Brookfield had originally made a binding bid with Spanish telecoms firm Cellnex, before Cellnex withdrew on Wednesday. The German telecoms giant will keep the remaining 49-per-cent stake and the deal is expected to close towards the end of this year. It will reduce Deutsche Telekom’s financial debt by 10.7 billion euros, the company said, as it works towards acquiring a majority share in its T-Mobile U.S. subsidiary.
Amazon has offered to refrain from using sellers’ data for its own competing retail business and boost the visibility of rival products on its platform, EU regulators said on Thursday, a move aimed at staving off a possible hefty fine. The U.S. online retail giant offered to treat sellers equally when ranking their offers for the “buy box” on its website and which generates the bulk of its sales, confirming a Reuters story. Sellers will also be allowed to choose their own logistics and delivery services company instead of Amazon’s competing logistics services.
Barrick Gold Corp reported a 5.4-per-cent rise in second-quarter gold output compared to the previous quarter, as its mines including Carlin, Turquoise Ridge, Veladero, Bulyanhulu and North Mara performed well. Total preliminary gold production for the company, the world’s No.2 gold miner, stood at 1.04 million ounces in the quarter ended June 30, up from 990,000 ounces in the first quarter.
Economic news
(8:30 a.m. ET) Canada’s manufacturing sales and new orders for May.
(8:30 a.m. ET) Canada’s construction investment for May.
(8:30 a.m. ET) U.S. initial jobless claims for week of July 9.
Most job search advice is cookie-cutter. The advice you’re following is almost certainly the same advice other job seekers follow, making you just another candidate following the same script.
In today’s hyper-competitive job market, standing out is critical, a challenge most job seekers struggle with. Instead of relying on generic questions recommended by self-proclaimed career coaches, which often lead to a forgettable interview, ask unique, thought-provoking questions that’ll spark engaging conversations and leave a lasting impression.
Your level of interest in the company and the role.
Contributing to your employer’s success is essential.
You desire a cultural fit.
Here are the top four questions experts recommend candidates ask; hence, they’ve become cliché questions you should avoid asking:
“What are the key responsibilities of this position?”
Most likely, the job description answers this question. Therefore, asking this question indicates you didn’t read the job description. If you require clarification, ask, “How many outbound calls will I be required to make daily?” “What will be my monthly revenue target?”
“What does a typical day look like?”
Although it’s important to understand day-to-day expectations, this question tends to elicit vague responses and rarely leads to a deeper conversation. Don’t focus on what your day will look like; instead, focus on being clear on the results you need to deliver. Nobody I know has ever been fired for not following a “typical day.” However, I know several people who were fired for failing to meet expectations. Before accepting a job offer, ensure you’re capable of meeting the employer’s expectations.
“How would you describe the company culture?”
Asking this question screams, “I read somewhere to ask this question.” There are much better ways to research a company’s culture, such as speaking to current and former employees, reading online reviews and news articles. Furthermore, since your interviewer works for the company, they’re presumably comfortable with the culture. Do you expect your interviewer to give you the brutal truth? “Be careful of Craig; get on his bad side, and he’ll make your life miserable.” “Bob is close to retirement. I give him lots of slack, which the rest of the team needs to pick up.”
Truism: No matter how much due diligence you do, only when you start working for the employer will you experience and, therefore, know their culture firsthand.
“What opportunities are there for professional development?”
When asked this question, I immediately think the candidate cares more about gaining than contributing, a showstopper. Managing your career is your responsibility, not your employer’s.
Cliché questions don’t impress hiring managers, nor will they differentiate you from your competition. To transform your interaction with your interviewer from a Q&A session into a dynamic discussion, ask unique, insightful questions.
Here are my four go-to questions—I have many more—to accomplish this:
“Describe your management style. How will you manage me?”
This question gives your interviewer the opportunity to talk about themselves, which we all love doing. As well, being in sync with my boss is extremely important to me. The management style of who’ll be my boss is a determining factor in whether or not I’ll accept the job.
“What is the one thing I should never do that’ll piss you off and possibly damage our working relationship beyond repair?”
This question also allows me to determine whether I and my to-be boss would be in sync. Sometimes I ask, “What are your pet peeves?”
“When I join the team, what would be the most important contribution you’d want to see from me in the first six months?”
Setting myself up for failure is the last thing I want. As I mentioned, focus on the results you need to produce and timelines. How realistic are the expectations? It’s never about the question; it’s about what you want to know. It’s important to know whether you’ll be able to meet or even exceed your new boss’s expectations.
“If I wanted to sell you on an idea or suggestion, what do you need to know?”
Years ago, a candidate asked me this question. I was impressed he wasn’t looking just to put in time; he was looking for how he could be a contributing employee. Every time I ask this question, it leads to an in-depth discussion.
Other questions I’ve asked:
“What keeps you up at night?”
“If you were to leave this company, who would follow?”
“How do you handle an employee making a mistake?”
“If you were to give a Ted Talk, what topic would you talk about?”
“What are three highly valued skills at [company] that I should master to advance?”
“What are the informal expectations of the role?”
“What is one misconception people have about you [or the company]?”
Your questions reveal a great deal about your motivations, drive to make a meaningful impact on the business, and a chance to morph the questioning into a conversation. Cliché questions don’t lead to meaningful discussions, whereas unique, thought-provoking questions do and, in turn, make you memorable.
Nick Kossovan, a well-seasoned veteran of the corporate landscape, offers “unsweetened” job search advice. You can send Nick your questions to artoffindingwork@gmail.com.
CALGARY – Canadian Natural Resources Ltd. reported a third-quarter profit of $2.27 billion, down from $2.34 billion in the same quarter last year.
The company says the profit amounted to $1.06 per diluted share for the quarter that ended Sept. 30 compared with $1.06 per diluted share a year earlier.
Product sales totalled $10.40 billion, down from $11.76 billion in the same quarter last year.
Daily production for the quarter averaged 1,363,086 barrels of oil equivalent per day, down from 1,393,614 a year ago.
On an adjusted basis, Canadian Natural says it earned 97 cents per diluted share for the quarter, down from an adjusted profit of $1.30 per diluted share in the same quarter last year.
The average analyst estimate had been for a profit of 90 cents per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Oct. 31, 2024.
CALGARY – Cenovus Energy Inc. reported its third-quarter profit fell compared with a year as its revenue edged lower.
The company says it earned $820 million or 42 cents per diluted share for the quarter ended Sept. 30, down from $1.86 billion or 97 cents per diluted share a year earlier.
Revenue for the quarter totalled $14.25 billion, down from $14.58 billion in the same quarter last year.
Total upstream production in the quarter amounted to 771,300 barrels of oil equivalent per day, down from 797,000 a year earlier.
Total downstream throughput was 642,900 barrels per day compared with 664,300 in the same quarter last year.
On an adjusted basis, Cenovus says its funds flow amounted to $1.05 per diluted share in its latest quarter, down from adjusted funds flow of $1.81 per diluted share a year earlier.
This report by The Canadian Press was first published Oct. 31, 2024.
/cloudfront-us-east-1.images.arcpublishing.com/tgam/TDSOULU36ZJTJMIIO5RVPEECYI.JPG)
