U.S. stocks were little changed at Monday’s market open ahead of another round of critical earnings.
The S&P 500 (^GSPC), the technology-heavy Nasdaq Composite (^IXIC) and the Dow Jones Industrial Average (^DJI) were mostly flat as of 9:42 AM ET.
Bond yields were up. The yield on the 10-year note climbed to 3.56%, while the two-year note yields gained to 4.15% Monday morning.
On the commodities front, gold futures (GC=F) are holding on to key levels above $2,000 per ounce on the back of hawkish rate hikes comments from Federal Reserve officials last week. Crude oil (CL=F) hovered above $80 a barrel.
Stocks ended lower on Friday, with the Dow Jones Industrial Average down more than 100 points but notching its fourth consecutive weekly gain. It came as disappointing data on March retail sales offset excitement after initial corporate earnings reports came in better than expected.
On Friday, the first round of earnings kicked off since the collapse of Silicon Valley Bank and Signature Bank, with JPMorgan (JPM) reporting a record quarterly revenue that beat analyst estimates, boosting the stock 7.5%. On the same day, Citi (C) and Wells Fargo (WFC) also topped expectations.
As the first flurry of bank earnings impressed investors following the collapse of three US banks last month, it has left analysts asking, “What banking crisis?” Still, the fallout will result in challenges ahead for the industry.
Earnings season will pick up steam, with another host of bank earnings on deck this week. The beleaguered regional banks will be up to bat, with Bank OZK (OZK), Zions Bancorporation (ZION), and others expected to complement reports from bank heavyweight like Bank of America (BAC), Goldman Sachs (GS), and Morgan Stanley (MS).
Meanwhile, investor favorites Netflix (NFLX), Lockheed Martin (LMT), Johnson & Johnson (JNJ) and Tesla (TSLA) are expected to post quarterly earnings.
On the economic front, housing data will take center stage with NAHB Housing Index data, housing starts, existing home sales, and mortgage rate and application data all expected to be updated this week, offering a picture of the housing market amid a slightly softening rate environment.
Outside of housing, unemployment and PMI data is anticipated, each of which could serve as insight into the Fed’s decision making ahead of its blackout period, which starts on Saturday.
Separately, U.S. Treasury Secretary Janet Yellen said during an interview that tighter lending following recent bank failures could substitute for further rate hikes. Eight Fed officials are slated to speak this week, and market strategists are waiting to see if they will all agree.
Markets have priced in a 84% probability that the Federal Reserve will raise interest rates by another 0.25% in May, according to data from the CME Group.
In single-stock moves, shares of Alphabet Inc. (GOOG) were down Monday morning after reports that Samsung Electronics was considering replacing Google with Microsoft-owned Bing as the default search engine to its devices.
State Street Corporation (STT) sharesplunged after reporting a miss in quarterly profits due to a fall in fee income amid the recent banking turmoil.
Shares of M&T Bank Corporation (MTB) ticked down after the company reported better than expected first quarter earnings, signaling confidence for the regional lender amid fallouts in the wider banking sector earlier this year.
Charles Schwab Corporation (SCHW) shares fell Monday morning after the firm reported a loss of $41 billion in deposits, the first three months of 2023 in their latest earnings.
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Dani Romero is a reporter for Yahoo Finance. Follow her on Twitter @daniromerotv
TORONTO – Canada Goose Holdings Inc. says it has signed a deal that will result in the creation of its first eyewear collection.
The deal announced on Thursday by the Toronto-based luxury apparel company comes in the form of an exclusive, long-term global licensing agreement with Marchon Eyewear Inc.
The terms and value of the agreement were not disclosed, but Marchon produces eyewear for brands including Lacoste, Nike, Calvin Klein, Ferragamo, Longchamp and Zeiss.
Marchon plans to roll out both sunglasses and optical wear under the Canada Goose name next spring, starting in North America.
Canada Goose says the eyewear will be sold through optical retailers, department stores, Canada Goose shops and its website.
Canada Goose CEO Dani Reiss told The Canadian Press in August that he envisioned his company eventually expanding into eyewear and luggage.
This report by The Canadian Press was first published Sept. 19, 2024.
Almost seven years since news broke of an alleged conspiracy to fix the price of packaged bread across Canada, the saga isn’t over: the Competition Bureau continues to investigate the companies that may have been involved, and two class-action lawsuits continue to work their way through the courts.
Here’s a timeline of key events in the bread price-fixing case.
Oct. 31, 2017: The Competition Bureau says it’s investigating allegations of bread price-fixing and that it was granted search warrants in the case. Several grocers confirm they are co-operating in the probe.
Dec. 19, 2017: Loblaw and George Weston say they participated in an “industry-wide price-fixing arrangement” to raise the price of packaged bread. The companies say they have been co-operating in the Competition Bureau’s investigation since March 2015, when they self-reported to the bureau upon discovering anti-competitive behaviour, and are receiving immunity from prosecution. They announce they are offering $25 gift cards to customers amid the ongoing investigation into alleged bread price-fixing.
Jan. 31, 2018: In court documents, the Competition Bureau says at least $1.50 was added to the price of a loaf of bread between about 2001 and 2016.
Dec. 20, 2019: A class-action lawsuit in a Quebec court against multiple grocers and food companies is certified against a number of companies allegedly involved in bread price-fixing, including Loblaw, George Weston, Metro, Sobeys, Walmart Canada, Canada Bread and Giant Tiger (which have all denied involvement, except for Loblaw and George Weston, which later settled with the plaintiffs).
Dec. 31, 2021: A class-action lawsuit in an Ontario court covering all Canadian residents except those in Quebec who bought packaged bread from a company named in the suit is certified against roughly the same group of companies.
June 21, 2023: Bakery giant Canada Bread Co. is fined $50 million after pleading guilty to four counts of price-fixing under the Competition Act as part of the Competition Bureau’s ongoing investigation.
Oct. 25 2023: Canada Bread files a statement of defence in the Ontario class action denying participating in the alleged conspiracy and saying any anti-competitive behaviour it participated in was at the direction and to the benefit of its then-majority owner Maple Leaf Foods, which is not a defendant in the case (neither is its current owner Grupo Bimbo). Maple Leaf calls Canada Bread’s accusations “baseless.”
Dec. 20, 2023: Metro files new documents in the Ontario class action accusing Loblaw and its parent company George Weston of conspiring to implicate it in the alleged scheme, denying involvement. Sobeys has made a similar claim. The two companies deny the allegations.
July 25, 2024: Loblaw and George Weston say they agreed to pay a combined $500 million to settle both the Ontario and Quebec class-action lawsuits. Loblaw’s share of the settlement includes a $96-million credit for the gift cards it gave out years earlier.
Sept. 12, 2024: Canada Bread files new documents in Ontario court as part of the class action, claiming Maple Leaf used it as a “shield” to avoid liability in the alleged scheme. Maple Leaf was a majority shareholder of Canada Bread until 2014, and the company claims it’s liable for any price-fixing activity. Maple Leaf refutes the claims.
This report by The Canadian Press was first published Sept. 19, 2024.
Companies in this story: (TSX:L, TSX:MFI, TSX:MRU, TSX:EMP.A, TSX:WN)
TORONTO – TD Bank Group, which is mired in a money laundering scandal in the U.S., says chief executive Bharat Masrani will retire next year.
Masrani, who will retire officially on April 10, 2025, says the bank’s, “anti-money laundering challenges,” took place on his watch and he takes full responsibility.
The bank named Raymond Chun, TD’s group head, Canadian personal banking, as his successor.
As part of a transition plan, Chun will become chief operating officer on Nov. 1 before taking over the top job when Masrani steps down at the bank’s annual meeting next year.
TD also announced that Riaz Ahmed, group head, wholesale banking and president and CEO of TD Securities, will retire at the end of January 2025.
TD has taken billions in charges related to ongoing U.S. investigations into the failure of its anti-money laundering program.
This report by The Canadian Press was first published Sept. 19, 2024.
