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Stock market news live updates: Stocks pare declines while US-China tensions mount – Yahoo Canada Finance

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Stocks were mixed Friday, paring earlier losses as ongoing signs of the economic damage from the coronavirus pandemic compounded with fears of rising U.S.-China tensions. A slew of quarterly corporate earnings results came in mixed.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Concerns that relations with China could become increasingly strained flared up Thursday, with U.S. senators introducing a bipartisan bill that would sanction Chinese officials and organizations who enforce newly introduced security measures in Hong Kong. This came a day after the Senate passed a bill that would make it more difficult for Chinese companies to list on U.S. stock exchanges. All three major indices ended the regular session lower.” data-reactid=”17″>Concerns that relations with China could become increasingly strained flared up Thursday, with U.S. senators introducing a bipartisan bill that would sanction Chinese officials and organizations who enforce newly introduced security measures in Hong Kong. This came a day after the Senate passed a bill that would make it more difficult for Chinese companies to list on U.S. stock exchanges. All three major indices ended the regular session lower.

Overnight, Chinese officials at their National People’s Congress in Beijing declined to provide an annual gross domestic product target for the country’s economic growth for the first time since the practice began about three decades ago, underscoring the economic impact from the coronavirus pandemic. China’s quarterly GDP growth turned negative for the first time on record in the first three months of the year, declining 6.8%.

Earlier on Thursday, the U.S. Labor Department’s weekly report on initial jobless claims showed another 2.438 million individuals filed for unemployment insurance claims last week, bringing the nine-week total for new claims to more than 38 million. Continuing jobless claims hit a fresh record high of more than 25 million, as of the week ended May 8.

“The long fat tail in the profile of job losses during this pandemic suggests that layoffs are no longer just because of the economy shutting down and a backlog of claims being processed,” Torsten Slok, chief economist at Deutsche Bank Securities, said in a note.

“Instead, the fact that we still lost 2.4mn [million] jobs last week after nine weeks of COVID-19 suggests that what is going on is a more permanent reallocation of workers away from jobs in industries that require a high degree of face-to-face and close physical interaction,” he added.

Amid economic data that has remained historically weak, Federal Reserve officials have dimmed hopes of a speedy, V-shaped recovery – an outcome the stock market, up 32% from its March 23 low, has appeared more unwilling to bet against so far.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="In commentary Thursday, New York Fed President John Williams&nbsp;said he forecasted a “a couple very difficult months ahead of us,” and Fed Vice Chairman Richard Clarida also said he believed the “net effect” of the pandemic would be “for aggregate demand to decline relative to aggregate supply, both in the near term and over the medium term.”” data-reactid=”23″>In commentary Thursday, New York Fed President John Williams said he forecasted a “a couple very difficult months ahead of us,” and Fed Vice Chairman Richard Clarida also said he believed the “net effect” of the pandemic would be “for aggregate demand to decline relative to aggregate supply, both in the near term and over the medium term.”

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="After market close, chip-maker Nvidia (NVDA) reported sales for the first quarter that grew 39% over last year and profit that beat expectations, and its guidance for the current quarter topped estimates. Ross Stores (ROST), on the other hand, reported quarterly sales that halved over last year and swung to a loss amid widespread store closures during the pandemic.” data-reactid=”24″>After market close, chip-maker Nvidia (NVDA) reported sales for the first quarter that grew 39% over last year and profit that beat expectations, and its guidance for the current quarter topped estimates. Ross Stores (ROST), on the other hand, reported quarterly sales that halved over last year and swung to a loss amid widespread store closures during the pandemic.

1:26 p.m. ET: Stocks pare declines, S&P 500 and Nasdaq turn positive

Here were the main moves in markets as of 1:27 p.m. ET:

  • S&P 500 (^GSPC): +0.27 points (+0.01%) to 2,948.78

  • Dow (^DJI): -67.88 points (-0.28%) to 24,406.24

  • Nasdaq (^IXIC): +27.29 points (+0.29%) to 9,312.31

  • Crude (CL=F): -$0.74 (-2.18%) to $33.18 a barrel

  • Gold (GC=F): +$12.80 (+0.74%) to $1,734.70 per ounce

  • 10-year Treasury (^TNX): -1.6 bps to yield 0.661%

12:40 p.m. ET: Fauci warns of ‘irreparable damage’ if US stays closed to long: CNBC

Dr. Anthony Fauci, the country’s top infectious disease expert, said in an interview with CNBC that he did not support protracted stay-in-place orders, noting that these could inflict “irreparable damage” to the U.S. economy.

“I don’t want people to think that any of us feel that staying locked down for a prolonged period of time is the way to go,” he said, according to the CNBC interview.

Instead, he advocated a phased reopening to get back to “some degree of normal,” while also cautioning that easing social distancing too quickly could bring on another jump in COVID-19 cases.

9:36 a.m. ET: Stocks open lower

Here were the main moves in markets as of 9:36 a.m. ET:

  • S&P 500 (^GSPC): -6.18 points (-0.21%) to 2,942.33

  • Dow (^DJI): -92.85 points (-0.38%) to 24,381.27

  • Nasdaq (^IXIC): -26.15 points (-0.28%) to 9,258.65

  • Crude (CL=F): -$0.99 (-2.92%) to $32.93 a barrel

  • Gold (GC=F): +$12.10 (+0.7%) to $1,734.00 per ounce

  • 10-year Treasury (^TNX): -1.1 bps to yield 0.666%

8:30 a.m. ET: Alibaba revenue growth slows amid pandemic

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Chinese e-commerce giant Alibaba (BABA) reported a revenue deceleration in the first three months of the year amid the coronavirus pandemic, with sales growing 22% from a 51% pace of increase in the same quarter last year. Annual active customers on its Chinese retail marketplaces grew 11% to 726 million.” data-reactid=”52″>Chinese e-commerce giant Alibaba (BABA) reported a revenue deceleration in the first three months of the year amid the coronavirus pandemic, with sales growing 22% from a 51% pace of increase in the same quarter last year. Annual active customers on its Chinese retail marketplaces grew 11% to 726 million.

“Although the pandemic negatively impacted most of our domestic core commerce businesses starting in late January, we have seen a steady recovery since March,” CFO Maggie Wu said in a statement.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="During an earnings call Friday morning, Wu said Alibaba will “closely monitor” the developments of the Holding Foreign Companies Accountable Act passed by the U.S. Senate earlier this week, which moves to delist foreign issuers listed on U.S. exchanges that are found not to comply with U.S. accounting principles.” data-reactid=”58″>During an earnings call Friday morning, Wu said Alibaba will “closely monitor” the developments of the Holding Foreign Companies Accountable Act passed by the U.S. Senate earlier this week, which moves to delist foreign issuers listed on U.S. exchanges that are found not to comply with U.S. accounting principles.

Wu said Alibaba holds itself to a “high standard of transparency” and that Alibaba’s financial statements are prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP).

7:15 a.m. ET Friday: Stock futures lower heading into Friday’s regular session

Here were the main moves in markets as of 7:15 a.m. ET:

  • S&P 500 futures (ES=F): 2,927.5, down 9.5 points (-0.32%)

  • Dow futures (YM=F): 24,290.00, down 86 points (-0.35%)

  • Nasdaq futures (NQ=F): 9,314.75, down 41 points (-0.44%)

  • Crude (CL=F): -$2.00 (+5.90%) to $31.92 a barrel

  • Gold (GC=F): +$14.00 (+0.81%) to $1,735.90 per ounce

  • 10-year Treasury (^TNX): -2.8 bps to yield 0.649%

6:04 p.m. ET Thursday: Stock futures open slightly lower

Here were the main moves at the start of the overnight session for U.S. equity futures, as of 6:03 p.m. ET:

  • S&P 500 futures (ES=F): 2,935.5, down 1.5 points (-0.05%)

  • Dow futures (YM=F): 24,369, down 7 points (-0.03%)

  • Nasdaq futures (NQ=F): 9,356.00, flat

NEW YORK, NEW YORK – MAY 21: A Fresh Direct worker in protective face mask and gloves handles deliveries on May 21, 2020 in New York City. COVID-19 has spread to most countries around the world, claiming over 332,000 lives with infections of over 5.1 million people. (Photo by Rob Kim/Getty Images)

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Follow Yahoo Finance on&nbsp;Twitter,&nbsp;Facebook,&nbsp;Instagram,&nbsp;Flipboard,&nbsp;LinkedIn, and&nbsp;reddit.” data-reactid=”89″>Follow Yahoo Finance on TwitterFacebookInstagramFlipboardLinkedIn, and reddit.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Find live stock market quotes and the latest business and finance news” data-reactid=”90″>Find live stock market quotes and the latest business and finance news

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="For tutorials and information on investing and trading stocks, check out Cashay” data-reactid=”91″>For tutorials and information on investing and trading stocks, check out Cashay

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Driving for Uber or writing on Fiverr? How to handle taxes on digital platform income

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Digital platforms like Uber, Airbnb and Etsy have made it easier than ever to make some extra cash on the side, but experts say you need to be diligent about tracking and reporting that additional income, or risk the consequences.

“Especially in the first year … make sure that if you’re not familiar with how to report self-employed income, seek assistance and get it right, rather than take the risk of getting it wrong. It’ll take a lot longer and cost a lot more to fix it,” said Bruce Goudy, director of BDO Canada’s indirect tax practice.

More and more Canadians are earning income from websites and apps, whether they’re renting out a property on Airbnb, delivering food through Uber Eats, or doing graphic design on Fiverr.

In December 2023, 927,000 people ages 15 to 69 years old said they had earned money from a digital platform in the preceding year, said Statistics Canada. This included platforms that pay workers directly and those that connect workers with clients.

If you earn money through a digital platform, you are considered self-employed, said Stefanie Ricchio, a chartered professional accountant and spokesperson for TurboTax Canada.

Instead of the standard T4 tax form you get from an employer, you’ll need to report your self-employment income on a T2125 form when you file your taxes.

As well as your income, you also need to report your expenses, said Ricchio. These expenses can include home office costs, car maintenance, and even the fees you pay to the digital platform — there are hundreds of deductions available, she said.

“The more eligible deductions that you apply to that income, the less that tax bill is going to be when you file.”

Because you’re generally not collecting taxes when you earn money on a digital platform, you need to be prepared to pay those taxes when you file, said Ricchio. She recommends setting aside about a quarter of your income for this purpose.

For those who are new to being self-employed, it can require a big mindset change, she said.

Once you’re earning $30,000 or more over four consecutive quarters, you have to register for a GST/HST account, said Ricchio, though you can voluntarily do it earlier.

But if you are providing rideshare services, you have to sign up right at the beginning, she said.

“It’s immediate because you start charging GST, HST immediately.”

This threshold might take some sellers by surprise, said Goudy, which is why it’s important to monitor your revenues closely so you’re not caught off guard.

Goudy noted that since Canada has several different sales tax jurisdictions, sellers should make sure they’re aware of those implications — tax obligations are based on where the customer is located, not the seller.

Canada recently introduced new reporting rules for digital platform operators, which came into effect this year. The rules themselves target the platforms, but could affect people working through those platforms too.

Certain platforms are now required to collect and report information to the Canada Revenue Agency on sellers who live in Canada or in countries that have implemented the same rules, and who sell to people in Canada or those countries, according to the CRA. This information may include identifying details like names and addresses, platform fees, property locations (if applicable) and payment details.

“What pre-empted this is obviously the rise of e-commerce, digital, the digital transaction community,” said Ricchio.

“They know that they have been missing transactions that have gone unknown to the CRA … so this is now the mechanism to help them capture it, to ensure that everyone is paying tax where they should be on that income.”

Sellers may be asked for additional information so the platform can fulfil these obligations, the agency added.

If a seller doesn’t provide their tax identification information to the platform, they can be fined $500, the CRA said.

Certain sellers are excluded from these obligations, including those with “less than 30 relevant activities for the sale of goods” and for whom the total amount paid or credited was below $2,800 during the reportable period, according to the CRA.

Sellers need to make sure they do their due diligence and comply with all their reporting requirements, said Goudy, as what they file has to match what the platform reports.

Non-compliance can result in penalties, he said, as well as any penalties or interest on unpaid taxes.

“The CRA is going to be able to cross-check this information readily available,” he said.

“If the sellers were not compliant before … then it’s going to be pretty obvious.”

Another change this year is that if you operate a short-term rental in a designated province or municipality where you’re not allowed to do so, the CRA will disqualify your business deductions, said Ricchio.

If you’re earning digital platform income on top of your regular employment income, Ricchio said the extra money could potentially push you into a higher tax bracket.

This will not only affect your rate of taxation but could also hit any benefits you’re used to receiving, such as the Canada Child Benefit or the GST/HST credit, she said. “That’s also sometimes a shock for people.”

This report by The Canadian Press was first published Oct. 17, 2024.

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Interfor selling Quebec operations for $30M, closing Montreal corporate office

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BURNABY, B.C. – Interfor Corp. is selling its three manufacturing facilities in Quebec and closing its corporate office in Montreal as the lumber producer plans to leave the province and focus on other parts of the company.

Interfor chief executive Ian Fillinger says the decision to exit its Quebec operations was influenced by recent developments that have restricted the availability of economic fibre, including record forest fires in 2023.

The company says it has signed a deal to sell its sawmills in Val-d’Or and Matagami as well as its Sullivan remanufacturing plant in Val-d’Or, along with all associated forestry and business operations, to Chantiers Chibougamau Ltée (CCL) for $30 million in cash.

Interfor and CCL will also enter into a multi-year contract for the supply of machine stress rated lumber to Interfor’s I-Joist engineered wood products facility in Sault Ste. Marie, Ont.

Interfor says it expects to take an impairment charge in its third quarter associated with the announcement.

The sale does not include any countervailing or anti-dumping duty deposits related to the ongoing U.S.-Canada softwood lumber trade dispute.

This report by The Canadian Press was first published Oct. 16, 2024.

Companies in this story: (TSX:IFP)

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TD Bank Group says Charles Schwab investment will add C$178M for Q4

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TORONTO – TD Bank Group says The Charles Schwab Corp.’s third-quarter results are expected to translate into about $178 million of reported equity in net income for the Canadian bank’s fourth quarter.

TD says that excluding about $2 million after-tax in acquisition-related charges and $27 million after-tax in amortization of acquired intangibles, its adjusted equity in net income from its investment in Schwab will be $207 million.

TD is expected to release its full fourth-quarter results on Dec. 5.

Schwab, which keeps its books in U.S. dollars, reported Tuesday a third-quarter profit of US$1.41 billion, up from US$1.13 billion a year earlier.

On an adjusted basis, Schwab says it earned US$1.53 billion in its latest quarter compared with US$1.52 billion in the same quarter last year.

TD announced in August that it had sold 40.5 million Schwab shares. The sale reduced its interest in Schwab to 10.1 per cent from 12.3 per cent.

This report by The Canadian Press was first published Oct. 16, 2024.

Companies in this story: (TSX:TD)

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