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S&P/TSX composite down as Shopify decline weighs on technology sector – CTV News

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2 years ago

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TORONTO –

North American markets ended the trading day in the red, with a double-digit decline in Shopify Inc. weighing on the technology sector of Canada’s main stock exchange and U.S. stock markets sank ahead of Wednesday’s scheduled interest rate decision from the U.S. Federal Reserve.

The S&P/TSX composite index closed down 131.80 points at 18,972.68, driven by weakness in the technology sector after Shopify announced that it would be laying off 10 per cent of its workforce because it misjudged the growth of the e-commerce sector.

The company’s share price fell by more than 15 per cent in late-morning trading but regained some of those losses to close at $40.69 per share.

“E-commerce is not performing as well as it was during pandemic lockdowns when people were forced to buy online,” Pierre Cleroux, vice-president of research and chief economist for the Business Development Bank of Canada, said in an interview. “We all thought this would continue, but it did slow down. I was surprised by that.”

In New York, the Dow Jones industrial average was down 228.50 points at 31,761.54. The S&P 500 index was down 45.79 points at 3,921.05, while the technology-heavy Nasdaq composite was down 220.10 points at 11,562.57.

Cleroux says North American markets were also reacting to the International Monetary Fund’s (IMF) “gloomy” economic outlook.

The IMF now sees the global economy growing 3.2 per cent in 2022, down 0.4 percentage points from April, before slowing to a 2.9 per cent GDP rate next year, a downgrade of 0.7 percentage points.

Walmart’s profit warning on Monday after markets closed also gave investors jitters. The retail giant slashed its second-quarter and full-year profit outlooks, citing skyrocketing inflation impacting consumers’ shopping habits.

“Walmart is a leader. When Walmart has difficulties to meet their profit target it means other companies will have difficulties as well,” said Cleroux.

The U.S. Federal Reserve is also expected to lift interest rates by 0.75 percentage points Wednesday, which Cleroux says is already baked into the markets.

It’s a big week for technology earnings and Cleroux says those results will have more impact on the markets than the Fed.

“It’s going to be a sign if the economy is really slowing down or not,” he said.

Google parent Alphabet reported earnings that missed Wall Street estimates after the closing bell on Tuesday.

Overall, Cleroux is somewhat positive about the U.S. earnings season, however.

“Earnings will be better than what the U.S. is expecting,” he said. “I think (companies) are going to meet their targets or be slightly down.”

As for Canada, he says “we should perform quite well because a lot of our major companies are in the energy sector. And in the second quarter, energy prices were still very high.”

The September crude contract was down US$1.72 at US$94.98 per barrel, after getting close to that US$100 per barrel mark.

“It’s probably going stay between US$95 to US$100 per barrel this week,” Cleroux said.

The market will expect oil demand is going to slow down as the world economy slows down, he explains, adding that he “doesn’t believe the price is going to go back to $100 this summer.”

The September natural gas contract was up 25 cents at US$8.83.

The August gold contract was down US$1.40 at US$1,717.70 an ounce and the September copper contract was up three cents at US$3.38 a pound.

The Canadian dollar traded for 77.62 cents US compared with 77.81 cents US on Monday.

This report by The Canadian Press was first published July 26, 2022.

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Carry On Canadian Business. Carry On!

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15 hours ago

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October 22, 2024

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business to start in Canada

Human Resources Officers must be very busy these days what with the general turnover of employees in our retail and business sectors. It is hard enough to find skilled people let alone potential employees willing to be trained. Then after the training, a few weeks go by then they come to you and ask for a raise. You refuse as there simply is no excess money in the budget and away they fly to wherever they come from, trained but not willing to put in the time to achieve that wanted raise.

I have had potentials come in and we give them a test to see if they do indeed know how to weld, polish or work with wood. 2-10 we hire, and one of those is gone in a week or two. Ask that they want overtime, and their laughter leaving the building is loud and unsettling. Housing starts are doing well but way behind because those trades needed to finish a project simply don’t come to the site, with delay after delay. Some people’s attitudes are just too funny. A recent graduate from a Ivy League university came in for an interview. The position was mid-management potential, but when we told them a three month period was needed and then they would make the big bucks they disappeared as fast as they arrived.

Government agencies are really no help, sending us people unsuited or unwilling to carry out the jobs we offer. Handing money over to staffing firms whose referrals are weak and ineffectual. Perhaps with the Fall and Winter upon us, these folks will have to find work and stop playing on the golf course or cottaging away. Tried to hire new arrivals in Canada but it is truly difficult to find someone who has a real identity card and is approved to live and work here. Who do we hire? Several years ago my father’s firm was rocking and rolling with all sorts of work. It was a summer day when the immigration officers arrived and 30+ employees hit the bricks almost immediately. The investigation that followed had threats of fines thrown at us by the officials. Good thing we kept excellent records, photos and digital copies. We had to prove the illegal documents given to us were as good as the real McCoy.

Restauranteurs, builders, manufacturers, finishers, trades-based firms, and warehousing are all suspect in hiring illegals, yet that becomes secondary as Toronto increases its minimum wage again bringing our payroll up another $120,000. Survival in Canada’s financial and business sectors is questionable for many. Good luck Chuck!. at least your carbon tax refund check should be arriving soon.

Steven Kaszab
Bradford, Ontario
skaszab@yahoo.ca

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Imperial to cut prices in NWT community after low river prevented resupply by barges

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18 hours ago

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October 22, 2024

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NORMAN WELLS, N.W.T. – Imperial Oil says it will temporarily reduce its fuel prices in a Northwest Territories community that has seen costs skyrocket due to low water on the Mackenzie River forcing the cancellation of the summer barge resupply season.

Imperial says in a Facebook post it will cut the air transportation portion that’s included in its wholesale price in Norman Wells for diesel fuel, or heating oil, from $3.38 per litre to $1.69 per litre, starting Tuesday.

The air transportation increase, it further states, will be implemented over a longer period.

It says Imperial is closely monitoring how much fuel needs to be airlifted to the Norman Wells area to prevent runouts until the winter road season begins and supplies can be replenished.

Gasoline and heating fuel prices approached $5 a litre at the start of this month.

Norman Wells’ town council declared a local emergency on humanitarian grounds last week as some of its 700 residents said they were facing monthly fuel bills coming to more than $5,000.

“The wholesale price increase that Imperial has applied is strictly to cover the air transportation costs. There is no Imperial profit margin included on the wholesale price. Imperial does not set prices at the retail level,” Imperial’s statement on Monday said.

The statement further said Imperial is working closely with the Northwest Territories government on ways to help residents in the near term.

“Imperial Oil’s decision to lower the price of home heating fuel offers immediate relief to residents facing financial pressures. This step reflects a swift response by Imperial Oil to discussions with the GNWT and will help ease short-term financial burdens on residents,” Caroline Wawzonek, Deputy Premier and Minister of Finance and Infrastructure, said in a news release Monday.

Wawzonek also noted the Territories government has supported the community with implementation of a fund supporting businesses and communities impacted by barge cancellations. She said there have also been increases to the Senior Home Heating Subsidy in Norman Wells, and continued support for heating costs for eligible Income Assistance recipients.

Additionally, she said the government has donated $150,000 to the Norman Wells food bank.

In its declaration of a state of emergency, the town said the mayor and council recognized the recent hike in fuel prices has strained household budgets, raised transportation costs, and affected local businesses.

It added that for the next three months, water and sewer service fees will be waived for all residents and businesses.

This report by The Canadian Press was first published Oct. 21, 2024.

The Canadian Press. All rights reserved.

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U.S. vote has Canadian business leaders worried about protectionist policies: KPMG

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18 hours ago

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October 22, 2024

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TORONTO – A new report says many Canadian business leaders are worried about economic uncertainties related to the looming U.S. election.

The survey by KPMG in Canada of 735 small- and medium-sized businesses says 87 per cent fear the Canadian economy could become “collateral damage” from American protectionist policies that lead to less favourable trade deals and increased tariffs

It says that due to those concerns, 85 per cent of business leaders in Canada polled are reviewing their business strategies to prepare for a change in leadership.

The concerns are primarily being felt by larger Canadian companies and sectors that are highly integrated with the U.S. economy, such as manufacturing, automotive, transportation and warehousing, energy and natural resources, as well as technology, media and telecommunications.

Shaira Nanji, a KPMG Law partner in its tax practice, says the prospect of further changes to economic and trade policies in the U.S. means some Canadian firms will need to look for ways to mitigate added costs and take advantage of potential trade relief provisions to remain competitive.

Both presidential candidates have campaigned on protectionist policies that could cause uncertainty for Canadian trade, and whoever takes the White House will be in charge during the review of the United States-Mexico-Canada Agreement in 2026.

This report by The Canadian Press was first published Oct. 22, 2024.

The Canadian Press. All rights reserved.

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