TORONTO — v>
Canada’s main stock index lost some ground midweek on weakness by the key energy and financials sectors.
Business
S&P/TSX composite drops midweek on energy and financials weakness
The S&P/TSX composite index closed down 132.41 points at 15,701.33.
Activity was mixed in the United States. The Dow Jones industrial average was down 282.31 points at 26,989.99 and the S&P 500 index was down 17.04 points at 3,190.14.
The Nasdaq composite was up 66.59 points at 10,020.35, the first time it closed above 10,0000 after setting another record intraday high. The tech-heavy market benefited as shares of Amazon and Apple set new highs.
Markets started the day stronger but faded even though the Federal Reserve gave a dovish outlook that was widely expected as it kept interest rates unchanged and vowed to keep them at rock-bottom levels at least through 2022.
“So of course, investors welcomed this move to maintain an accommodative stance in general,” said Candice Bangsund, portfolio manager for Fiera Capital.
But Fed chairman Jerome Powell later highlighted that considerable risks prevail while the path forward remains uncertain and dependent on the COVID-19 pandemic.
The U.S. economy is expected to shrink 6.5 per cent this year before growing by five per cent in 2021 and 3.5 per cent in 2022.
The central bank forecasts that the unemployment rate will end the year at 9.3 per cent before falling to 6.5 and 5.5 per cent over the next two years.
Powell noted the recovery will potentially take some time, thereby potentially dismissing the potential for a sharp V-shaped recovery in the back half of the year.
“The fact that equities are now fading that really might just suggest that investors got a little bit ahead of themselves and didn’t maybe acknowledge the risks out there particularly given the current level of equity valuations,” Bangsund said in an interview.
Eight of the 11 major sectors of the TSX were lower, led by energy.
It dropped four per cent despite higher crude oil prices with Shawcor Ltd. and Vermilion Energy Inc. up 8.9 and 7.1 per cent respectively.
The July crude contract was up 66 cents at US$39.60 per barrel and the July natural gas contract was up 1.3 cents at US$1.78 per mmBTU.
The Canadian dollar traded for 74.68 US compared with 74.50 cents US on Tuesday.
Real estate, health care, industrials and the heavyweight financials sectors were also lower. Industrials dropped as shares of Bombardier Inc. fell nearly eight per cent and Air Canada were 7.1 per cent lower.
Materials, consumer staples and technology were higher. Materials climbed 2.5 per cent with Oceanagold Corp. up 8.2 per cent and Kinross Gold Corp. up 6.2 per cent.
The August gold contract was down US$1.20 at US$1,720.70 an ounce and the July copper contract was up 5.75 cents at nearly US$2.66 a pound.
The strong weighting of U.S. markets towards technology stocks helped the S&P 500 and Nasdaq to outperform the TSX.
While coronavirus hospitalizations have surged in Texas and Arizona, investors have been largely ignoring the risks of a second wave of infections, said Bangsund.
“A lot of the optimism we’ve been seeing has largely been positioning for a scenario whereby a vaccine is made available and economic activity can resume and go back to more pre-COVID levels at a faster than expected pace.”
This report by The Canadian Press was first published June 10, 2020
Source: – CTV News
Business
Roots sees room for expansion in activewear, reports $5.2M Q2 loss and sales drop
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.
Business
Talks on today over HandyDART strike affecting vulnerable people in Metro Vancouver
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.
The Canadian Press. All rights reserved.
Business
Transat AT reports $39.9M Q3 loss compared with $57.3M profit a year earlier
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)
The Canadian Press. All rights reserved.
-
Sports17 hours ago
Dolphins will bring in another quarterback, while Tagovailoa deals with concussion
-
Sports18 hours ago
David Beckham among soccer dignitaries attending ex-England coach Sven-Goran Eriksson’s funeral
-
News18 hours ago
Vancouver Whitecaps cautious of lowly San Jose Earthquakes
-
Sports12 hours ago
Edmonton Oilers sign defenceman Travis Dermott to professional tryout
-
News18 hours ago
Alberta town adopts new resident code of conduct to address staff safety
-
Tech15 hours ago
United Airlines will offer free internet on flights using service from Elon Musk’s SpaceX
-
Sports5 hours ago
Kirk’s walk-off single in 11th inning lifts Blue Jays past Cardinals 4-3
-
News17 hours ago
Unifor says workers at Walmart warehouse in Mississauga, Ont., vote to join union