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North American stock markets reverse from strong morning gains on vaccine hopes – Yahoo Canada Finance

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TORONTO — North American stock markets plunged after a strong start to the week as a slide from Tesla Inc. and big tech company shares reversed a morning surge.

Optimism from Friday’s positive headlines about Gilead Sciences’s remdesivir carried over into Monday with news that the FDA granted fast-track designation to potential COVID-19 vaccines from Pfizer and a German company.

The tech-heavy Nasdaq composite surpassed 10,800 for the first time on gains from various companies including Facebook, Apple and Amazon while Tesla shares surged about 16 per cent.

The S&P 500 briefly erased all losses for the year.

However, market rallies evaporated in afternoon trading as Tesla reversed course and sank 3.1 per cent while the big tech companies were at least 1.7 per cent lower.

“The early optimism has faded,” said Erik Bregar, head of currency strategy at the Exchange Bank of Canada.

The electric car company featured more prominently in currency markets than is normal unless the movements are big enough, he said in an interview.

“I can point to the U.S. dollar rallying as soon as Tesla started tanking.”

Also a factor in the afternoon selloff was a rise in infection rates in California that prompted the state’s governor to roll back most reopening measures, including a statewide shutdown of bars, cinemas and dine-in restaurants.

The S&P/TSX composite index closed down 74.41 points at 15,639.41 after reaching an intraday high of 15,879.73.

In New York, the Dow Jones industrial average was up 10.50 points at 26,085.80 more than 550 points from its earlier high. The S&P 500 index was down 29.82 points at 3,155.22 after surpassing 3,235, while the Nasdaq composite was down 226.60 points or 2.1 per cent at 10,390.84.

The Canadian dollar traded for 73.71 cents US compared with 73.56 cents US on Friday.

Technology was the biggest mover on the TSX, losing 2.5 per cent as Shopify Inc. and Lightspeed POS Inc. were down 6.2 and 5.5 per cent respectively while Blackberry Ltd. was off 3.3 per cent.

Energy dropped on lower crude oil and natural gas prices with Seven Generations Energy Ltd. down 5.3 per cent and MEG Energy Corp. off 4.4 per cent.

The August crude contract was down 45 cents at US$40.10 per barrel and the August natural gas contract was down 6.6 cents at US$1.74 per mmBTU.

Materials dipped slightly despite higher metals prices with Oceanagold Corp. 8.3 per cent lower.

The August gold contract was up US$12.20 at US$1,814.10 an ounce and the September copper contract was up 5.75 cents at nearly US$2.96 a pound.

Health care rose on strong gains from Aphria Inc. while the heavyweight financials sector climbed with Manulife Financial and the Toronto-Dominion Bank up 1.9 and 1.4 per cent respectively.

Monday’s trading comes before the start of quarterly earnings results with large U.S. banks.

The results are expected to be dismal because of the impact of COVID-19, but if companies beat expectations that could produce positive surprises, said Bregar.

“That could probably give the stock market a lift and probably pressure the U.S. dollar a bit more.”

This report by The Canadian Press was first published July 13, 2020.

Companies in this story: (TSX:SHOP, TSX:LSPD, TSX:BB, TSX:VII, TSX:MEG, TSX:OGC, TSX:APHA, TSX:MFC, TSX:TD, TSX:GSPTSE, TSX:CADUSD=X)

Ross Marowits, The Canadian Press

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Roots sees room for expansion in activewear, reports $5.2M Q2 loss and sales drop

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TORONTO – Roots Corp. may have built its brand on all things comfy and cosy, but its CEO says activewear is now “really becoming a core part” of the brand.

The category, which at Roots spans leggings, tracksuits, sports bras and bike shorts, has seen such sustained double-digit growth that Meghan Roach plans to make it a key part of the business’ future.

“It’s an area … you will see us continue to expand upon,” she told analysts on a Friday call.

The Toronto-based retailer’s push into activewear has taken shape over many years and included several turns as the official designer and supplier of Team Canada’s Olympic uniform.

But consumers have had plenty of choice when it comes to workout gear and other apparel suited to their sporting needs. On top of the slew of athletic brands like Nike and Adidas, shoppers have also gravitated toward Lululemon Athletica Inc., Alo and Vuori, ramping up competition in the activewear category.

Roach feels Roots’ toehold in the category stems from the fit, feel and following its merchandise has cultivated.

“Our product really resonates with (shoppers) because you can wear it through multiple different use cases and occasions,” she said.

“We’ve been seeing customers come back again and again for some of these core products in our activewear collection.”

Her remarks came the same day as Roots revealed it lost $5.2 million in its latest quarter compared with a loss of $5.3 million in the same quarter last year.

The company said the second-quarter loss amounted to 13 cents per diluted share for the quarter ended Aug. 3, the same as a year earlier.

In presenting the results, Roach reminded analysts that the first half of the year is usually “seasonally small,” representing just 30 per cent of the company’s annual sales.

Sales for the second quarter totalled $47.7 million, down from $49.4 million in the same quarter last year.

The move lower came as direct-to-consumer sales amounted to $36.4 million, down from $37.1 million a year earlier, as comparable sales edged down 0.2 per cent.

The numbers reflect the fact that Roots continued to grapple with inventory challenges in the company’s Cooper fleece line that first cropped up in its previous quarter.

Roots recently began to use artificial intelligence to assist with daily inventory replenishments and said more tools helping with allocation will go live in the next quarter.

Beyond that time period, the company intends to keep exploring AI and renovate more of its stores.

It will also re-evaluate its design ranks.

Roots announced Friday that chief product officer Karuna Scheinfeld has stepped down.

Rather than fill the role, the company plans to hire senior level design talent with international experience in the outdoor and activewear sectors who will take on tasks previously done by the chief product officer.

This report by The Canadian Press was first published Sept. 13, 2024.

Companies in this story: (TSX:ROOT)

The Canadian Press. All rights reserved.

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Talks on today over HandyDART strike affecting vulnerable people in Metro Vancouver

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VANCOUVER – Mediated talks between the union representing HandyDART workers in Metro Vancouver and its employer, Transdev, are set to resume today as a strike that has stopped most services drags into a second week.

No timeline has been set for the length of the negotiations, but Joe McCann, president of the Amalgamated Transit Union Local 1724, says they are willing to stay there as long as it takes, even if talks drag on all night.

About 600 employees of the door-to-door transit service for people unable to navigate the conventional transit system have been on strike since last Tuesday, pausing service for all but essential medical trips.

Hundreds of drivers rallied outside TransLink’s head office earlier this week, calling for the transportation provider to intervene in the dispute with Transdev, which was contracted to oversee HandyDART service.

Transdev said earlier this week that it will provide a reply to the union’s latest proposal on Thursday.

A statement from the company said it “strongly believes” that their employees deserve fair wages, and that a fair contract “must balance the needs of their employees, clients and taxpayers.”

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

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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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