<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Stocks closed at record levels Tuesday after each of the S&P 500 and Nasdaq touched yet another record intraday high earlier in the session. A closely watched index tracking US consumer confidence unexpectedly deteriorated in August to a fresh pandemic-era low, cooling hopes for an extended rebound in consumer spending trends.” data-reactid=”16″>Stocks closed at record levels Tuesday after each of the S&P 500 and Nasdaq touched yet another record intraday high earlier in the session. A closely watched index tracking US consumer confidence unexpectedly deteriorated in August to a fresh pandemic-era low, cooling hopes for an extended rebound in consumer spending trends.
Earlier in the day, investor optimism had been stoked by signs that terms of an early-phase US-China trade deal would remain intact despite rising tensions elsewhere between the two countries.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Officials from both Washington and Beijing “see progress and are committed to taking the steps necessary to ensure the success” of the Phase One trade agreement signed between the two nations in January this year, according to a statement from the Office of the US Trade Representative Monday night. This came after U.S. Trade Representative Robert Lighthizer, Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He met via videoconference for a formal review of the multi-part agreement, which had helped bring a two-year trade war between the two nations to a ceasefire.” data-reactid=”19″>Officials from both Washington and Beijing “see progress and are committed to taking the steps necessary to ensure the success” of the Phase One trade agreement signed between the two nations in January this year, according to a statement from the Office of the US Trade Representative Monday night. This came after U.S. Trade Representative Robert Lighthizer, Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He met via videoconference for a formal review of the multi-part agreement, which had helped bring a two-year trade war between the two nations to a ceasefire.
Contracts on the three major indices initially rallied following the news. The Dow’s regular-session declines came as shares of current components including Exxon Mobil, Pfizer and Raytheon Technologies each sank following news that each would be replaced in the 30-stock index next week.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="After market close on Monday, S&P Dow Jones Indices announced that three new companies would be joining the Dow Jones Industrial Average, effective before market open on Monday, Aug. 31. Salesforce.com (CRM) is set to replace Exxon Mobil (XOM), with the oil major having been an index component for nearly a century. Honeywell International (HON) will replace Raytheon Technologies (RTX) and Amgen (AMGN) will replace Pfizer (PFE). Each of the companies joining the index added about 4% in late trading, while those exiting the index declined.” data-reactid=”21″>After market close on Monday, S&P Dow Jones Indices announced that three new companies would be joining the Dow Jones Industrial Average, effective before market open on Monday, Aug. 31. Salesforce.com (CRM) is set to replace Exxon Mobil (XOM), with the oil major having been an index component for nearly a century. Honeywell International (HON) will replace Raytheon Technologies (RTX) and Amgen (AMGN) will replace Pfizer (PFE). Each of the companies joining the index added about 4% in late trading, while those exiting the index declined.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Meanwhile, a handful of software companies filed to go public on Monday, as investor appetite for risk assets – and tech stocks with high-growth potential especially – remained elevated. Among the companies filing was Snowflake, a cloud data platform expected previously speculated to go public this year, following a funding round that valued it at $12.4 billion in February. The company, while unprofitable, posted revenue growth that more than doubled over last year. Other software companies that filed their go-public prospectus on Monday included Unity Software, Sumo Logic and JFrog.” data-reactid=”22″>Meanwhile, a handful of software companies filed to go public on Monday, as investor appetite for risk assets – and tech stocks with high-growth potential especially – remained elevated. Among the companies filing was Snowflake, a cloud data platform expected previously speculated to go public this year, following a funding round that valued it at $12.4 billion in February. The company, while unprofitable, posted revenue growth that more than doubled over last year. Other software companies that filed their go-public prospectus on Monday included Unity Software, Sumo Logic and JFrog.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Looking ahead to Tuesday, earnings season will continue with publicly traded software names Autodesk (ADSK), Salesforce (CRM) and Intuit (INTU) poised to report quarterly results after market close.” data-reactid=”23″>Looking ahead to Tuesday, earnings season will continue with publicly traded software names Autodesk (ADSK), Salesforce (CRM) and Intuit (INTU) poised to report quarterly results after market close.
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<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="4:02 p.m. ET: S&P 500, Nasdaq eke out record closes as tech shares gain; Amazon hits highest-ever level” data-reactid=”27″>4:02 p.m. ET: S&P 500, Nasdaq eke out record closes as tech shares gain; Amazon hits highest-ever level
Here were the main moves in markets as of 4:02 p.m. ET:
Gold (GC=F): -$5.10 (-0.26%) to $1,934.10 per ounce
10-year Treasury (^TNX): +3.6 bps to yield 0.6820%
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12:12 p.m. ET: American Airlines set to cut 19,000 jobs after US federal aid expires
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="American Airlines (AAL) is set to slash 19,000 workers after federal payroll aid expires for the company and other US airlines on Oct. 1, according to a securities filing Tuesday.” data-reactid=”38″>American Airlines (AAL) is set to slash 19,000 workers after federal payroll aid expires for the company and other US airlines on Oct. 1, according to a securities filing Tuesday.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Of the jobs expected to be cut, approximately 17,500 employees are set to be furloughed and could be called back once industry conditions improve. The remaining 1,500 will comprise cuts to management. Air passenger throughout remains down by about 70% over last year, according to TSA data.” data-reactid=”39″>Of the jobs expected to be cut, approximately 17,500 employees are set to be furloughed and could be called back once industry conditions improve. The remaining 1,500 will comprise cuts to management. Air passenger throughout remains down by about 70% over last year, according to TSA data.
Shares of American Airlines fell 4% in intraday trading, and peers including United Airlines and Delta Air Lines also sank.
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10:00 a.m. ET: Consumer Confidence unexpectedly falls for a second straight month in August, hitting lowest level in six years
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The three major indices turned lower Tuesday morning after The Conference Board’s Consumer Confidence Index for August unexpectedly declined to a fresh pandemic-era low, taking out the previous low from April.” data-reactid=”43″>The three major indices turned lower Tuesday morning after The Conference Board’s Consumer Confidence Index for August unexpectedly declined to a fresh pandemic-era low, taking out the previous low from April.
The headline index came in at 84.8 in August, down from a revised 91.7 in July, according to the report. That marked the lowest reading since 2014. Consensus economists expected the confidence index to rise to 93.0 in August. A subindex tracking consumer expectations fell 3.7 points to 85.2, and another tracking sentiment around current conditions slid 11.7 points to 84.2.
The percentage of consumers expecting business conditions will improve over the next six months declined to 29.9% from from 31.6%. Those expecting business conditions would worsen ticked up slightly to 20.5%.
“Consumers’ optimism about the short-term outlook, and their financial prospects, also declined and continues on a downward path,” Lynn Franco, senior director of economic indicators at the Conference Board, said in a statement. “Consumer spending has rebounded in recent months but increasing concerns amongst consumers about the economic outlook and their financial well-being will likely cause spending to cool in the months ahead.”
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9:55 a.m. ET: Best Buy, Hormel, JM Smucker report estimates-topping quarterly results
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Best Buy (BBY), Hormel (HRL) and JM Smucker (SJM) added to a hefty batch of companies reporting quarterly results that beat consensus expectations this earnings season.” data-reactid=”53″>Best Buy (BBY), Hormel (HRL) and JM Smucker (SJM) added to a hefty batch of companies reporting quarterly results that beat consensus expectations this earnings season.
Best Buy posted adjusted earnings of $1.71 per share on revenue of $9.91 billion, with each of these better than the $1.05 per share in adjusted earnings on sales of $9.78 billion expected. CEO Corie Barry said in a statement, “products that help people work, learn connect and cook at home, like computing appliances and tablets, were the largest drivers of our sales growth for the quarter.” Barry added that that enterprise sales growth was about 16% in the last seven weeks of the second quarter after the company opened our stores. Growth accelerated into August, with sales up approximately 20% for the first three weeks of the third quarter.
Hormel’s fiscal third-quarter net sales of $2.38 billion represented a quarterly record, as ongoing strength in its retail business was supplemented by a pick-up in its foodservice business as restaurants and other businesses reopened. Looking ahead, CEO Jim Snee said in a statement this morning he expects the fourth quarter will mirror the trends seen in the fourth quarter in terms of the strength of the retail and grocery business and recovery in foodservice. He added, however, that “the magnitude of additional recovery in the foodservice industry, the performance of the entire food supply chain and the state of the broader economy remain highly uncertain.”
JM Smucker posted top- and bottom-line results that also topped expectations, with adjusted earnigs of $2.37 per share well above the $1.68 expected. The company got a boost from increased at-home consumption, said that the coffee and consumer foods portfolios were especially strong during the quarter, with consumer foods’ profit up 62%. JM Smucker raised its guidance and now sees net sales increasing by as much as 1% for the full year, versus a previous outlook for a decline of between 1% and 2%
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9:50 a.m. ET: Stocks drift near record levels
Here’s where the three major indices traded shortly after market open Tuesday:
S&P 500 (^GSPC): +3.71 points (+0.11%) to 3,434.99
Human Resources Officers must be very busy these days what with the general turnover of employees in our retail and business sectors. It is hard enough to find skilled people let alone potential employees willing to be trained. Then after the training, a few weeks go by then they come to you and ask for a raise. You refuse as there simply is no excess money in the budget and away they fly to wherever they come from, trained but not willing to put in the time to achieve that wanted raise.
I have had potentials come in and we give them a test to see if they do indeed know how to weld, polish or work with wood. 2-10 we hire, and one of those is gone in a week or two. Ask that they want overtime, and their laughter leaving the building is loud and unsettling. Housing starts are doing well but way behind because those trades needed to finish a project simply don’t come to the site, with delay after delay. Some people’s attitudes are just too funny. A recent graduate from a Ivy League university came in for an interview. The position was mid-management potential, but when we told them a three month period was needed and then they would make the big bucks they disappeared as fast as they arrived.
Government agencies are really no help, sending us people unsuited or unwilling to carry out the jobs we offer. Handing money over to staffing firms whose referrals are weak and ineffectual. Perhaps with the Fall and Winter upon us, these folks will have to find work and stop playing on the golf course or cottaging away. Tried to hire new arrivals in Canada but it is truly difficult to find someone who has a real identity card and is approved to live and work here. Who do we hire? Several years ago my father’s firm was rocking and rolling with all sorts of work. It was a summer day when the immigration officers arrived and 30+ employees hit the bricks almost immediately. The investigation that followed had threats of fines thrown at us by the officials. Good thing we kept excellent records, photos and digital copies. We had to prove the illegal documents given to us were as good as the real McCoy.
Restauranteurs, builders, manufacturers, finishers, trades-based firms, and warehousing are all suspect in hiring illegals, yet that becomes secondary as Toronto increases its minimum wage again bringing our payroll up another $120,000. Survival in Canada’s financial and business sectors is questionable for many. Good luck Chuck!. at least your carbon tax refund check should be arriving soon.
NORMAN WELLS, N.W.T. – Imperial Oil says it will temporarily reduce its fuel prices in a Northwest Territories community that has seen costs skyrocket due to low water on the Mackenzie River forcing the cancellation of the summer barge resupply season.
Imperial says in a Facebook post it will cut the air transportation portion that’s included in its wholesale price in Norman Wells for diesel fuel, or heating oil, from $3.38 per litre to $1.69 per litre, starting Tuesday.
The air transportation increase, it further states, will be implemented over a longer period.
It says Imperial is closely monitoring how much fuel needs to be airlifted to the Norman Wells area to prevent runouts until the winter road season begins and supplies can be replenished.
Gasoline and heating fuel prices approached $5 a litre at the start of this month.
Norman Wells’ town council declared a local emergency on humanitarian grounds last week as some of its 700 residents said they were facing monthly fuel bills coming to more than $5,000.
“The wholesale price increase that Imperial has applied is strictly to cover the air transportation costs. There is no Imperial profit margin included on the wholesale price. Imperial does not set prices at the retail level,” Imperial’s statement on Monday said.
The statement further said Imperial is working closely with the Northwest Territories government on ways to help residents in the near term.
“Imperial Oil’s decision to lower the price of home heating fuel offers immediate relief to residents facing financial pressures. This step reflects a swift response by Imperial Oil to discussions with the GNWT and will help ease short-term financial burdens on residents,” Caroline Wawzonek, Deputy Premier and Minister of Finance and Infrastructure, said in a news release Monday.
Wawzonek also noted the Territories government has supported the community with implementation of a fund supporting businesses and communities impacted by barge cancellations. She said there have also been increases to the Senior Home Heating Subsidy in Norman Wells, and continued support for heating costs for eligible Income Assistance recipients.
Additionally, she said the government has donated $150,000 to the Norman Wells food bank.
In its declaration of a state of emergency, the town said the mayor and council recognized the recent hike in fuel prices has strained household budgets, raised transportation costs, and affected local businesses.
It added that for the next three months, water and sewer service fees will be waived for all residents and businesses.
This report by The Canadian Press was first published Oct. 21, 2024.
TORONTO – A new report says many Canadian business leaders are worried about economic uncertainties related to the looming U.S. election.
The survey by KPMG in Canada of 735 small- and medium-sized businesses says 87 per cent fear the Canadian economy could become “collateral damage” from American protectionist policies that lead to less favourable trade deals and increased tariffs
It says that due to those concerns, 85 per cent of business leaders in Canada polled are reviewing their business strategies to prepare for a change in leadership.
The concerns are primarily being felt by larger Canadian companies and sectors that are highly integrated with the U.S. economy, such as manufacturing, automotive, transportation and warehousing, energy and natural resources, as well as technology, media and telecommunications.
Shaira Nanji, a KPMG Law partner in its tax practice, says the prospect of further changes to economic and trade policies in the U.S. means some Canadian firms will need to look for ways to mitigate added costs and take advantage of potential trade relief provisions to remain competitive.
Both presidential candidates have campaigned on protectionist policies that could cause uncertainty for Canadian trade, and whoever takes the White House will be in charge during the review of the United States-Mexico-Canada Agreement in 2026.
This report by The Canadian Press was first published Oct. 22, 2024.
