U.S. stocks slid Tuesday in a downbeat start to a busy first trading week of 2023.
The S&P 500 (^GSPC) dropped to a session low of around 1% at noon after opening higher, while the Dow Jones Industrial Average (^DJI) fell more than 200 points, or 0.7%. The technology-heavy Nasdaq Composite (^IXIC) tumbled 1.3%.
Apple (AAPL) shares sank 4.1% on Tuesday, bringing the company’s market capitalization below $2 trillion — a symbolic milestone for the tech stock rout that wiped more than $3 trillion off the value of U.S. megacap giants last year.
Tesla (TSLA) also continued a downslide to start the new year, plunging as much as 13% — its biggest drop since September 2020 — after the electric carmaker on Monday reported vehicle production and delivery figures for fourth quarter that missed Wall Street’s estimates.
The company closed out its worst year on record in 2022, shedding 65%, or about $700 billion in market value. In December, growing concerns around production delays in China and CEO Elon Musk’s management of Twitter drove the stock down 36%, its biggest monthly drop since Tesla went public in 2010.
In other stock moves, Block (SQ) shares rose 2% following an upgrade from Baird analysts to Outperform, with a new price target of $78 per share, up from the prior $62.
Shares of Chinese companies trading on U.S. exchanges pushed forward, with Alibaba Group (BABA) and Baidu (BIDU) each rising at least 4% despite declines in the broader market.
The moves Tuesday come after broad-based declines on Friday in a fitting end to Wall Street’s worst year since the Global Financial Crisis in 2008. U.S. stock and bond markets were closed on Monday in observance of New Year’s Day.
The S&P 500 tumbled 19.4% in 2022, while the Nasdaq Composite wiped out one-third of its value, dropping 33% and closing out its first four-quarter decline since the 2000 dot-com bubble. The Dow fell a comparably modest 9%, holding up better than its index peers but still capping a three-year winning streak for the major averages.
A new year may not be a fresh start for investors, with strategists warning that many of the headwinds that plagued markets in 2022 will persist into the new year: inflation, continued monetary tightening by the Federal Reserve, and the risk of a hard landing as further rate hikes permeate the U.S. economy.
“The story in 2022 was the Fed hiking interest rates and choking off the equities and bond markets, and by indication a bunch of other markets in the process as well,” Opimas CEO Octavio Marenzi told Yahoo Finance Live on Friday, adding that market expectations for a terminal rate of 5% were “mindlessly optimistic.”
Stock trader Peter Tuchman reacts on the floor of the New York Stock Exchange at the closing bell on December 30, 2022 in New York. (Photo by TIMOTHY A. CLARY/AFP via Getty Images)
“I don’t think the peak interest rate is only 75 basis points away if you look at where inflation is,” Marenzi said. “I think there’s more pain to come in 2023 – I think basically we’re going to see a replay of 2022 – the same kind of pressures, the same direction.”
Economic data will pick up in the shortened first trading week of the year, with the Labor Department set to release its first jobs report of 2023 Friday morning. Economists expect a payroll gain of 200,000 jobs for December, per Bloomberg consensus estimates. Investors will get three additional updates on the labor market, with the latest Job Openings and Labor Turnover Survey (or JOLTS report), ADP’s private payrolls data, and the Challenger Job Cuts report all due out.
Investors will also tune in for the Fed’s release of minutes from its December policy meeting, which investors will pore over for clues on the central bank’s next move.
In other markets early Tuesday, U.S. Treasury yields retreated. In 2022, the yield on the benchmark 10-year note surged from around 1.5% at the beginning of the year to settle at 3.88% on Friday.
Oil prices slumped, with West Texas Intermediate (WTI) crude futures falling 1.7% to trade just below $79 per barrel. Meanwhile, the U.S. dollar index gained Tuesday morning.
CALGARY – TC Energy Corp. has lowered the estimated cost of its Southeast Gateway pipeline project in Mexico.
It says it now expects the project to cost between US$3.9 billion and US$4.1 billion compared with its original estimate of US$4.5 billion.
The change came as the company reported a third-quarter profit attributable to common shareholders of C$1.46 billion or $1.40 per share compared with a loss of C$197 million or 19 cents per share in the same quarter last year.
Revenue for the quarter ended Sept. 30 totalled C$4.08 billion, up from C$3.94 billion in the third quarter of 2023.
TC Energy says its comparable earnings for its latest quarter amounted to C$1.03 per share compared with C$1.00 per share a year earlier.
The average analyst estimate had been for a profit of 95 cents per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 7, 2024.
BCE Inc. reported a loss in its latest quarter as it recorded $2.11 billion in asset impairment charges, mainly related to Bell Media’s TV and radio properties.
The company says its net loss attributable to common shareholders amounted to $1.24 billion or $1.36 per share for the quarter ended Sept. 30 compared with a profit of $640 million or 70 cents per share a year earlier.
On an adjusted basis, BCE says it earned 75 cents per share in its latest quarter compared with an adjusted profit of 81 cents per share in the same quarter last year.
“Bell’s results for the third quarter demonstrate that we are disciplined in our pursuit of profitable growth in an intensely competitive environment,” BCE chief executive Mirko Bibic said in a statement.
“Our focus this quarter, and throughout 2024, has been to attract higher-margin subscribers and reduce costs to help offset short-term revenue impacts from sustained competitive pricing pressures, slow economic growth and a media advertising market that is in transition.”
Operating revenue for the quarter totalled $5.97 billion, down from $6.08 billion in its third quarter of 2023.
BCE also said it now expects its revenue for 2024 to fall about 1.5 per cent compared with earlier guidance for an increase of zero to four per cent.
The company says the change comes as it faces lower-than-anticipated wireless product revenue and sustained pressure on wireless prices.
BCE added 33,111 net postpaid mobile phone subscribers, down 76.8 per cent from the same period last year, which was the company’s second-best performance on the metric since 2010.
It says the drop was driven by higher customer churn — a measure of subscribers who cancelled their service — amid greater competitive activity and promotional offer intensity. BCE’s monthly churn rate for the category was 1.28 per cent, up from 1.1 per cent during its previous third quarter.
The company also saw 11.6 per cent fewer gross subscriber activations “due to more targeted promotional offers and mobile device discounting compared to last year.”
Bell’s wireless mobile phone average revenue per user was $58.26, down 3.4 per cent from $60.28 in the third quarter of the prior year.
This report by The Canadian Press was first published Nov. 7, 2024.
TORONTO – Canada Goose Holdings Inc. trimmed its financial guidance as it reported its second-quarter revenue fell compared with a year ago.
The luxury clothing company says revenue for the quarter ended Sept. 29 totalled $267.8 million, down from $281.1 million in the same quarter last year.
Net income attributable to shareholders amounted to $5.4 million or six cents per diluted share, up from $3.9 million or four cents per diluted share a year earlier.
On an adjusted basis, Canada Goose says it earned five cents per diluted share in its latest quarter compared with an adjusted profit of 16 cents per diluted share a year earlier.
In its outlook, Canada Goose says it now expects total revenue for its full financial year to show a low-single-digit percentage decrease to low-single-digit percentage increase compared with earlier guidance for a low-single-digit increase.
It also says it now expects its adjusted net income per diluted share to show a mid-single-digit percentage increase compared with earlier guidance for a percentage increase in the mid-teens.
This report by The Canadian Press was first published Nov. 7, 2024.
