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Stock Market News Live: Stocks come off highs after blasts in Baghdad – Yahoo Canada Finance

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<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Follow Yahoo Finance here for up-to-the-minute briefings on the financial markets, breaking news and other topics of interest to investors and traders. Please check back for continuing coverage.” data-reactid=”15″>Follow Yahoo Finance here for up-to-the-minute briefings on the financial markets, breaking news and other topics of interest to investors and traders. Please check back for continuing coverage.

Stocks have surged while oil and gold have fallen following President Donald Trump’s response to Iran’s attack on two Iraqi bases housing US troops — more sanctions but no armed response.

4:15 p.m. ET: Stocks come off highs after rockets in Baghdad

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Stocks fell after a Reuters&nbsp;report&nbsp;that two blasts were heard in the Iraqi capital of Baghdad, pulling back from record highs after Trump announced no armed response to Iran’s attacks. The blasts were later revealed to be rockets that fell within Baghdad’s Green Zone, causing no casualties. There was no immediate claim of responsibility, Reuters says.” data-reactid=”18″>Stocks fell after a Reuters report that two blasts were heard in the Iraqi capital of Baghdad, pulling back from record highs after Trump announced no armed response to Iran’s attacks. The blasts were later revealed to be rockets that fell within Baghdad’s Green Zone, causing no casualties. There was no immediate claim of responsibility, Reuters says.

Here’s where markets were at 4:15 p.m. ET:

  • S&P 500 (^GSPC): +0.49% or +15.87 points to 3,253.05

  • Dow (^DJI): +0.56% or +161.41 points to 28,745.09

  • Nasdaq (^IXIC): +0.67% or +60.66 points to 9,129.24

  • Crude oil (CL=F): -3.81% or -2.39 to 60.31 a barrel

  • Gold (GC=F): +2.57% or +0.0470 to 1.8740

2:45 p.m. ET: Market response to U.S.-Iran tensions will fade, strategist says

History suggests that developments in U.S.-Iran tensions will not leave a lasting mark on U.S. stocks, oil and safe haven assets, according to Capital Economics senior market economist Oliver Jones. 

“We doubt that U.S.-Iran tensions will play more than a minor role in deciding the best and worst-performing asset classes in 2020 as a whole, at least outside the Middle East,” Jones wrote in a note entitled “A bit of perspective on geopolitical risk” Wednesday. 

So far, Wednesday’s trading action – namely, a sharp rebound in equities and stark declines in oil and gold prices – are early indications that Jones’ thesis may come to pass over the course of the year.

“Such a small and short-lived reaction is actually fairly typical of what has happened after other events which have raised the risk of military action involving the U.S., like North Korea’s missile tests and the U.S. threats of ‘fire and fury’ in 2017, or the Cuban missile crisis in the 1960s,” Jones said. 

As another example, Jones pointed to cross-asset performance after the start of the Gulf War in 1990s. In the immediate aftermath of this conflict, returns from energy commodities surged, precious metal prices firmed and equities sank, in a similar response as witnessed late last week after the first reports of the U.S. airstrike that took out top Iranian commander Qassem Soleimani. 

“By the six-month mark, though, energy commodities had given back a lot of their initial gains. And precious metals had started to struggle, faring about as badly as global equities, which were contending with a recession in the US economy,” Jones said. A similar reversal also took place around six months after the start of the Iraq War in 2003, he added.

“These conflicts simply haven’t had large enough lasting effects on the global economy to matter much to markets outside the Middle East for long,” Jones said. “That looks like the most likely outcome this time too.” 

<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="1:45 p.m. ET: The oil shock is cancelled” data-reactid=”35″>1:45 p.m. ET: The oil shock is cancelled

Crude is collapsing in the wake of President Trump’s remarks, which markets are interpreting (rightly or wrongly) as a de-escalation of the U.S.’s standoff with Iran. Overnight, crude traders aggressively priced in the possibility of an armed confrontation, but Trump’s speech is momentarily calming fears of things heating up.

Brent is now down over 5% on the session, having cracked $60 per barrel. 

1:38 p.m. ET: S&P 500 and Nasdaq hit record highs

Following Trump’s announcement that Iran is “standing down,” the S&P 500 hit a record high of 3,260.98 and the Nasdaq hit a record high of 9,144.00.

Here’s where the major indices were at 1:38 p.m. ET:

  • S&P 500 (^GSPC): +0.65% or +20.90 points to 3,258.08

  • Dow (^DJI): +0.70% or +201.12 points to 28,784.80

  • Nasdaq (^IXIC): +0.81% or +73.68 points to 9,142.26

  • Crude oil (CL=F): -5.12% or -3.21 to 59.49 a barrel

  • Gold (GC=F): -0.97% or -15.20 to 1,559.10 per ounce

<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="12:55 pm. ET: GrubHub spikes on report of strategic options” data-reactid=”53″>12:55 pm. ET: GrubHub spikes on report of strategic options

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="GrubHub (GRUB) is staging a breathtaking rally of nearly 14% on the day, after The&nbsp;Wall Street Journal reported&nbsp;that the food delivery startup is weighing its options, which may include a sale. The report said talks are in early stages and nothing may come of it. The stock has hit rough shoals since going public nearly 6 years ago, with its valuation less than half of where it began life as a public company.” data-reactid=”54″>GrubHub (GRUB) is staging a breathtaking rally of nearly 14% on the day, after The Wall Street Journal reported that the food delivery startup is weighing its options, which may include a sale. The report said talks are in early stages and nothing may come of it. The stock has hit rough shoals since going public nearly 6 years ago, with its valuation less than half of where it began life as a public company.

<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="11:40 a.m. ET: Trump vows more sanctions on Iran but no armed response” data-reactid=”60″>11:40 a.m. ET: Trump vows more sanctions on Iran but no armed response

President Donald Trump addresses the nation from the White House on the ballistic missile strike that Iran launched against Iraqi air bases housing U.S. troops, Wednesday, Jan. 8, 2020, in Washington, as Vice President Mike Pence, Secretary of State Mike Pompeo and military leaders, looks on. (AP Photo/Alex Brandon)

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President Donald Trump addresses the nation from the White House on the ballistic missile strike that Iran launched against Iraqi air bases housing U.S. troops, Wednesday, Jan. 8, 2020, in Washington, as Vice President Mike Pence, Secretary of State Mike Pompeo and military leaders, looks on. (AP Photo/Alex Brandon)

Addressing Iran’s retaliation against U.S. bases in Iraq late Tuesday, President Donald Trump said Tehran “appears to be standing down” — in keeping with most observers’ thinking that an armed U.S. response isn’t imminent. Trump added that his administration “will immediately impose additional punishing economic sanctions on the Iranian regime.”

Investors seemed to cheer that news, with stocks adding to the session’s gains on hopes that tensions won’t spiral into further armed conflict.

Here were the main moves in markets, as of 11:46 a.m. ET:

  • S&P 500 (^GSPC): 3,257.71, up 0.68%

  • Dow (^DJI): 28,782.11, up 0.69%

  • Nasdaq (^IXIC): 9,133.99, up 0.72%

  • Crude oil (CL=F): $60.47 per barrel, down 3.56%

  • Gold (GC=F): $1,565.80 per ounce, down 0.54%

<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="11:00 a.m. ET: The oil shock that never was (and might never be)” data-reactid=”95″>11:00 a.m. ET: The oil shock that never was (and might never be)

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="With Iran escalation fears (momentarily) in retreat, oil (CL=F) has reversed dramatically after spiking by 4% in after-hours trading on Tuesday. One of the major concerns about a prolonged U.S.-Iran conflict has been the impact on crude — and whether it would spark a global supply crisis that could send prices well above $100.” data-reactid=”96″>With Iran escalation fears (momentarily) in retreat, oil (CL=F) has reversed dramatically after spiking by 4% in after-hours trading on Tuesday. One of the major concerns about a prolonged U.S.-Iran conflict has been the impact on crude — and whether it would spark a global supply crisis that could send prices well above $100.

The U.S. shale boom has lubricated world markets with oil, and helped insulate the world’s largest economy from supply shocks. Torsten Slok, Deutsche Bank’s top economist, pointed out that the U.S. is in fact much less sensitive to rising oil prices than in years past.

The US economy is much less sensitive to higher oil prices today than it used to be.The US economy is much less sensitive to higher oil prices today than it used to be.

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The US economy is much less sensitive to higher oil prices today than it used to be.

10:46 a.m. ET: Nasdaq hits, holds near fresh record high

The Nasdaq posted an all-time high of 9,104.99 at about 10:15 a.m. ET. The index held near this record level as investors continued to shrug off the most recent U.S.-Iran developments. Both the S&P 500 and Dow were also in the green, with the former within 0.3% of its own all-time high at the highs of the session so far.

Here were the main moves in markets, as of 10:46 a.m. ET:

  • S&P 500 (^GSPC): 3,240.96, up 3.78 points or 0.12%

  • Dow (^DJI): 28,589.74, up 6.06 points or 0.02%

  • Nasdaq (^IXIC): 9,080.79, up 12.21 points or 11.75%

  • Crude oil (CL=F): $60.47 per barrel, down 3.56%

  • Gold (GC=F): $1,565.80 per ounce, down 0.54%

10:26 a.m. ET: Carlos Ghosn ends press conference

Over the course of a more than two-hour press conference in Lebanon, former Nissan chief executive officer Carlos Ghosn attempted to explain his reasoning for fleeing Japan, where he had been arrested under allegations of financial misconduct and aggravated breach of trust.

In his first public appearance since his escape, Ghosn went into detail over his treatment in Japan, which has a conviction rate north of 99% and where he believed he would not be given a fair trial. He described solitary confinement, a lack of access to prescribed medications, hours of interrogation and just two showers a week as all part of his incarceration.

Ghosn blamed a host of individuals and institutions for his situation, including Japanese prosecutors and government officials, and Nissan and its law firm.

The former auto executive was arrested in November 2018 and faced multiple charges for allegedly under-reporting years’ worth of compensation and misusing Nissan’s resources for his personal gain.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="READ MORE” data-reactid=”134″>READ MORE

Carlos Ghosn, the former CEO of Nissan and Renault, speaks for the first time since fleeing Japan.Carlos Ghosn, the former CEO of Nissan and Renault, speaks for the first time since fleeing Japan.

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Carlos Ghosn, the former CEO of Nissan and Renault, speaks for the first time since fleeing Japan.

9:34 a.m. ET: Boeing shares fall after Ukrainian airplane crash

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Shares of Boeing (BA) extended losses from the overnight session to trade more than 1% lower after a&nbsp;Ukrainian passenger jet crashed Wednesday shortly after taking off from Iran’s capital of Tehran, killing all 176 people aboard.” data-reactid=”157″>Shares of Boeing (BA) extended losses from the overnight session to trade more than 1% lower after a Ukrainian passenger jet crashed Wednesday shortly after taking off from Iran’s capital of Tehran, killing all 176 people aboard.

Iranian officials said they believed a mechanical issue caused the crash of the Boeing 737-800 aircraft, which had been en route to Ukraine’s capital Kyiv.

The crash took place just hours after Iran launched a missile attack on airbases in Iraq housing U.S. troops.

Ukrainian officials have most recently declined to offer their assessment for the cause of the accident, as the investigation remains ongoing.

9:31 a.m. ET: Markets open little changed

U.S. equities opened mostly flat, shrugging off earlier fears after Iran launched more than a dozen missiles to strike U.S.-Iraqi airbases.

Here were the main moves in markets, as of 9:31 a.m. ET:

  • S&P 500 (^GSPC): 3,238.20, up 1.02 points or 0.03%

  • Dow (^DJI): 28,548, down 35.51 points or 0.09%

  • Nasdaq (^IXIC): 9,075.09, up 6.51 points or 0.09%

  • Crude oil (CL=F): $62.40 per barrel, down 0.48%

  • Gold (GC=F): $1,578.40 per ounce, up $4.10 or 0.26%

8:15 a.m. ET: Private payrolls rise more than expected in December

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The U.S. economy added 202,000 private payrolls at the end of last year, according to a report from&nbsp;ADP/Moody’s Wednesday. This exceeded consensus economist expectations for an increase of just 160,000, according to Bloomberg data.&nbsp;In November, private payrolls had risen by an upwardly revised 124,000, from the 67,000 reported previously.” data-reactid=”173″>The U.S. economy added 202,000 private payrolls at the end of last year, according to a report from ADP/Moody’s Wednesday. This exceeded consensus economist expectations for an increase of just 160,000, according to Bloomberg data. In November, private payrolls had risen by an upwardly revised 124,000, from the 67,000 reported previously.

By sector, service-producing firms led December’s advances, posting a net increase of 173,000 jobs. However, gains were capped by a loss of 21,000 jobs in the leisure and hospitality industry, and a loss of 14,000 jobs in the information industry.

Goods-producing firms increased jobs by a net 29,000, with a gain of 37,000 payrolls in construction industries offset by declines in mining and manufacturing.

<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="8:00 a.m. ET: Carlos Ghosn speaks for the first time since fleeing Japan” data-reactid=”177″>8:00 a.m. ET: Carlos Ghosn speaks for the first time since fleeing Japan

Former Nissan chief Carlos Ghosn slammed the Japanese justice system during his first public appearance since fleeing the country. 

“I did not escape justice. I fled injustice and persecution, political persecution,” Ghosn said at a press conference in Lebanon on Wednesday. “You’re going to die in Japan or you’ve got to get out.”

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="READ MORE” data-reactid=”180″>READ MORE

<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="7:33 a.m. ET: Stock futures muted after Iran missile strike scare” data-reactid=”182″>7:33 a.m. ET: Stock futures muted after Iran missile strike scare

Wall Street jitters flared before quieting after Iran fired missiles at U.S.-Iraqi airbases during the overnight session. The retaliatory move by Iran, after a U.S. airstrike last week took out its top military general, produced no reported casualties so far.

Here were the main moves during the pre-market session, as of 7:33 a.m. ET:

  • S&P futures (ES=F): 3,241.50, up 6.25 points or 0.19%

  • Dow futures (YM=F): 28,513, down 13 points or 0.05%

  • Nasdaq futures (NQ=F): 8,870.25, up 17.25 points or 0.19%

  • Crude oil (CL=F): $62.59 per barrel, down $0.11 or 0.18%

  • Gold (GC=F): $1,578.90 per ounce, up $4.60 or 0.29%

After reports of the projectiles around 5:30 p.m. ET Tuesday, stock futures slid and gold and oil prices spiked. Brent crude oil prices briefly surged to $71.75 per barrel and gold jumped to more than $1,600 per ounce for the first time in about seven years. These gains, however, retraced shortly thereafter.

“There was a knee-jerk reaction in financial markets, with oil and gold prices rising,” UBS economist Paul Donovan wrote in a note Wednesday. “However, a response was expected by investors, and the initial market moves seem hard to justify.”

US equity futures made a round trip.US equity futures made a round trip.

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US equity futures made a round trip.

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Transat AT reports $39.9M Q3 loss compared with $57.3M profit a year earlier

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MONTREAL – Travel company Transat AT Inc. reported a loss in its latest quarter compared with a profit a year earlier as its revenue edged lower.

The parent company of Air Transat says it lost $39.9 million or $1.03 per diluted share in its quarter ended July 31.

The result compared with a profit of $57.3 million or $1.49 per diluted share a year earlier.

Revenue in what was the company’s third quarter totalled $736.2 million, down from $746.3 million in the same quarter last year.

On an adjusted basis, Transat says it lost $1.10 per share in its latest quarter compared with an adjusted profit of $1.10 per share a year earlier.

Transat chief executive Annick Guérard says demand for leisure travel remains healthy, as evidenced by higher traffic, but consumers are increasingly price conscious given the current economic uncertainty.

This report by The Canadian Press was first published Sept. 12, 2024.

Companies in this story: (TSX:TRZ)

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Dollarama keeping an eye on competitors as Loblaw launches new ultra-discount chain

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Dollarama Inc.’s food aisles may have expanded far beyond sweet treats or piles of gum by the checkout counter in recent years, but its chief executive maintains his company is “not in the grocery business,” even if it’s keeping an eye on the sector.

“It’s just one small part of our store,” Neil Rossy told analysts on a Wednesday call, where he was questioned about the company’s food merchandise and rivals playing in the same space.

“We will keep an eye on all retailers — like all retailers keep an eye on us — to make sure that we’re competitive and we understand what’s out there.”

Over the last decade and as consumers have more recently sought deals, Dollarama’s food merchandise has expanded to include bread and pantry staples like cereal, rice and pasta sold at prices on par or below supermarkets.

However, the competition in the discount segment of the market Dollarama operates in intensified recently when the country’s biggest grocery chain began piloting a new ultra-discount store.

The No Name stores being tested by Loblaw Cos. Ltd. in Windsor, St. Catharines and Brockville, Ont., are billed as 20 per cent cheaper than discount retail competitors including No Frills. The grocery giant is able to offer such cost savings by relying on a smaller store footprint, fewer chilled products and a hearty range of No Name merchandise.

Though Rossy brushed off notions that his company is a supermarket challenger, grocers aren’t off his radar.

“All retailers in Canada are realistic about the fact that everyone is everyone’s competition on any given item or category,” he said.

Rossy declined to reveal how much of the chain’s sales would overlap with Loblaw or the food category, arguing the vast variety of items Dollarama sells is its strength rather than its grocery products alone.

“What makes Dollarama Dollarama is a very wide assortment of different departments that somewhat represent the old five-and-dime local convenience store,” he said.

The breadth of Dollarama’s offerings helped carry the company to a second-quarter profit of $285.9 million, up from $245.8 million in the same quarter last year as its sales rose 7.4 per cent.

The retailer said Wednesday the profit amounted to $1.02 per diluted share for the 13-week period ended July 28, up from 86 cents per diluted share a year earlier.

The period the quarter covers includes the start of summer, when Rossy said the weather was “terrible.”

“The weather got slightly better towards the end of the summer and our sales certainly increased, but not enough to make up for the season’s horrible start,” he said.

Sales totalled $1.56 billion for the quarter, up from $1.46 billion in the same quarter last year.

Comparable store sales, a key metric for retailers, increased 4.7 per cent, while the average transaction was down2.2 per cent and traffic was up seven per cent, RBC analyst Irene Nattel pointed out.

She told investors in a note that the numbers reflect “solid demand as cautious consumers focus on core consumables and everyday essentials.”

Analysts have attributed such behaviour to interest rates that have been slow to drop and high prices of key consumer goods, which are weighing on household budgets.

To cope, many Canadians have spent more time seeking deals, trading down to more affordable brands and forgoing small luxuries they would treat themselves to in better economic times.

“When people feel squeezed, they tend to shy away from discretionary, focus on the basics,” Rossy said. “When people are feeling good about their wallet, they tend to be more lax about the basics and more willing to spend on discretionary.”

The current economic situation has drawn in not just the average Canadian looking to save a buck or two, but also wealthier consumers.

“When the entire economy is feeling slightly squeezed, we get more consumers who might not have to or want to shop at a Dollarama generally or who enjoy shopping at a Dollarama but have the luxury of not having to worry about the price in some other store that they happen to be standing in that has those goods,” Rossy said.

“Well, when times are tougher, they’ll consider the extra five minutes to go to the store next door.”

This report by The Canadian Press was first published Sept. 11, 2024.

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U.S. regulator fines TD Bank US$28M for faulty consumer reports

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TORONTO – The U.S. Consumer Financial Protection Bureau has ordered TD Bank Group to pay US$28 million for repeatedly sharing inaccurate, negative information about its customers to consumer reporting companies.

The agency says TD has to pay US$7.76 million in total to tens of thousands of victims of its illegal actions, along with a US$20 million civil penalty.

It says TD shared information that contained systemic errors about credit card and bank deposit accounts to consumer reporting companies, which can include credit reports as well as screening reports for tenants and employees and other background checks.

CFPB director Rohit Chopra says in a statement that TD threatened the consumer reports of customers with fraudulent information then “barely lifted a finger to fix it,” and that regulators will need to “focus major attention” on TD Bank to change its course.

TD says in a statement it self-identified these issues and proactively worked to improve its practices, and that it is committed to delivering on its responsibilities to its customers.

The bank also faces scrutiny in the U.S. over its anti-money laundering program where it expects to pay more than US$3 billion in monetary penalties to resolve.

This report by The Canadian Press was first published Sept. 11, 2024.

Companies in this story: (TSX:TD)

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