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Stocks rebound: S&P 500 posts best day in three weeks, Dow gains 643 points, or 2.2% – Yahoo Canada



U.S. stocks rose Tuesday as traders returned from a long weekend, with equities recouping some losses following the S&P 500’s worst week since March 2020.

The S&P 500 advanced by 2.45% in its best day in three weeks, ending at 3,764.84 and recovering some declines after plunging by 5.8% last week. The Nasdaq Composite gained 2.5% to end at 11,069.30, and the Dow added more than 643 points, or 2.2%, to end at 30,531.77 and post its best single-day gain since May 4.

Bitcoin (BTC-USD) rose back above $21,000 after a cryptocurrency rout briefly sent prices below $18,000 for the first time since December 2020 over the weekend. Treasury yields climbed, with the benchmark 10-year yield increasing to nearly 3.3%, and U.S. crude oil prices rose by 1.5% to top $111 per barrel.

Tuesday’s early recovery rally across risk assets came as an at least brief respite amid weeks of heavy selling. The S&P 500 sank into its first bear market since the height of the pandemic last week, and the sell-off ramped even further after the Federal Reserve unleashed a larger-than-typical 75 basis point interest rate hike and signaled it would be willing to tighten further and at the expense of some economic growth to bring down rampant inflationary pressures.

Federal Reserve Chair Jerome Powell is set to deliver his semi-annual address before Congress on Wednesday and Thursday, during which he is likely to be pressed by lawmakers about the Fed’s actions to bring down inflation and the extent to which these may weigh on the economy.

And already, concerns over the resilience of the economy have risen sharply. A number of economists at major Wall Street firms downgraded their growth forecasts over the past several days to reflect an increased risk of a recession. A recession is typically defined as two consecutive quarters of negative GDP growth, though the final call is made by the National Bureau of Economic Research (NBER).

“The most likely outlook is very weak growth and persistently high inflation,” Bank of America economists wrote in a note Friday. “We see roughly a 40% chance of a recession next year. Our worst fears around the Fed have been confirmed: they fell way behind the curve and are now playing a dangerous game of catch up.”

Others have been even more bearish. Deutsche Bank’s base case calls for a recession to begin in the third quarter of 2023, following sluggish real GDP growth of just 1.2% in the U.S. in 2022, versus the 1.8% seen previously. Goldman Sachs economists “now see recession risk as higher and more front-loaded,” the firm’s chief economist Jan Hatzius said in a new note. He raised his recession probability to 30% from 15%.

Rising risks of a formal recession in the U.S. economy also leave the S&P 500 vulnerable to more downside, even after a more than 22% slide so far for the year-to-date. The S&P 500’s bear market slides since World War II have averaged 29.6% with an average duration of 11.4 months, according to data from LPL Financial’s Ryan Detrick. However, when bear markets coincide with recessions, the S&P 500 tends to fall 34.8% on average at its bear market trough and last nearly 15 months.

NEW YORK, NEW YORK - JUNE 16: Traders work on the floor of the New York Stock Exchange (NYSE) on June 16, 2022 in New York City. Stocks fell sharply in morning trading as investors react to the Federal Reserve's largest rate hike since 1994.  (Photo by Spencer Platt/Getty Images)NEW YORK, NEW YORK - JUNE 16: Traders work on the floor of the New York Stock Exchange (NYSE) on June 16, 2022 in New York City. Stocks fell sharply in morning trading as investors react to the Federal Reserve's largest rate hike since 1994.  (Photo by Spencer Platt/Getty Images)

NEW YORK, NEW YORK – JUNE 16: Traders work on the floor of the New York Stock Exchange (NYSE) on June 16, 2022 in New York City. Stocks fell sharply in morning trading as investors react to the Federal Reserve’s largest rate hike since 1994. (Photo by Spencer Platt/Getty Images)

On the move

  • Kellogg (K) shares rose after the company announced it planned to split into three separate companies. The newly spun out firms will comprise a separate global snack foods company, a North American cereal firm, and pure-play plant-based foods company.

  • Tesla’s (TSLA) stock gained after CEO Elon Musk said the company’s head count would only be reduced by as much as about 3.5% in the near-term, or a smaller percentage than previously expected. Musk confirmed that 10% of salaried workers at Tesla would be cut over the next three months, but that ongoing hiring would keep the net reduction to just 3-3.5% of the firm’s overall workforce, he told Bloomberg News Tuesday.

  • Coinbase (COIN) shares jumped more than 12% as cryptocurrency prices bounced after reaching multi-year lows. The crypto trading platform saw its stock slide nearly 80% for the year-to-date through Friday’s close, and shares have traded well below their reference price of $250 apiece from the time of Coinbase’s April 2021 direct listing.

Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter.

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Ford government caps rent increases to 2.5% in 2023 – CityNews Toronto



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  1. Ford government caps rent increases to 2.5% in 2023  CityNews Toronto
  2. Ontario is doubling how much landlords can hike rent prices by in 2023  blogTO
  3. Ontario rent guideline highest increase in a decade  CP24 Toronto’s Breaking News
  4. Rent increases in Ontario capped at 2.5 per cent next year
  5. View Full coverage on Google News

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Air Canada to reduce flights this summer amid 'customer service shortfalls' – CTV News



Air Canada is planning to reduce its flights in July and August, according to a statement from the company’s president, as the airline continues to deal with “customer service shortfalls.”

“Regrettably, things are not business as usual in our industry globally, and this is affecting our operations and our ability to serve you with our normal standards of care,” Michael Rousseau wrote.

The airline will be reducing its capacity as summer travel comes to a peak and pandemic-related restrictions on travel continue to lift.

In an emailed statement to CTV News Channel, an Air Canada spokesperson said the company will be reducing its schedule by an average of 154 flights per day for July and August. Prior to this change, Air Canada said it was operating around 1,000 flights per day. The routes most affected are flights to and from Toronto and Montreal airports. The changes will reduce the frequency of these flights, and will primarily affect evening and late-night flights on the airline’s smaller aircraft.

The spokesperson also said the airline will be temporarily suspending routes between Montreal and Pittsburgh, Baltimore and Kelowna, and Toronto and Fort McMurray. International flights will remain mostly unaffected, except for timing changes that the spokesperson said would reduce flying at peak times.

“To bring about the level of operational stability we need, with reluctance, we are now making meaningful reductions to our schedule in July and August in order to reduce passenger volumes and flows to a level we believe the air transport system can accommodate,” the statement reads.

While Rousseau acknowledges this will have a “negative impact on some customers,” he said he hopes giving this notice to the public of the airline’s reduced schedule will allow travellers to make other arrangements.

“We are convinced these changes will bring about the improvements we have targeted,” he said. “But to set expectations, it should also be understood the real benefits of this action will take time and be felt only gradually as the industry regains the reliability and robustness it had attained prior to the pandemic.”

Recent data shows that as we head into the summer travel season, more than half of all flights in and out of some of Canada’s major airports are being cancelled or delayed as the tourism and airline sectors continue to face staffing shortages. 

On Wednesday, the CEO of the Montreal-Trudeau Airport – where Air Canada said it would be reducing some of its flights – told CTV News Montreal that the airport was already in discussions with airlines to reduce the number of flights.

“We’re having discussions and it’s likely the frequencies — the number of flights we’ll have on a given destination — or destinations themselves,” Philippe Rainville said, adding that a staffing shortage at the airport is causing issues, most notably in loading and unloading luggage from planes.

Toronto Pearson International Airport is experiencing similar issues, with videos circulating on social media appearing to depict hundreds of pieces of luggage piled up in the baggage claim area.

“I have had conversations with the four largest airports and the two largest airlines just on Thursday and I will be having follow up conversations with them soon,” Transport Minister Omar Alghabra said at a press conference on Wednesday. “They know that they need to add more resources and they are working on that and we are offering our support to address these issues. But these are unacceptable issues.”

Airline and airport workers say some of the big reasons behind the struggle to address the industry’s staffing shortage are that they’re not being treated well, and their pay is not sufficient for how difficult the job is.

“There are so many screening officers that have quit because of low pay and poor working conditions that the airports are severely understaffed,” David Lipton, representative of the United Steelworkers union in Ottawa, told CTV National News on June 19.

Lipton said some unions are offering screening staff hundreds of dollars a week if they don’t take a vacation or sick days. 

With files from CTV News Montreal, CTV News Toronto, and Alexandra Mae Jones

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Accounting firm EY to pay $100M US fine after auditors caught cheating on ethics exams – CBC News



Accounting firm Ernst & Young will pay $100 million US to settle U.S. Securities and Exchange Commission (SEC) charges that its auditors cheated on certified public accounting (CPA) exams and that it misled the agency’s investigators.

The London-based auditor admitted to the charges and agreed to pay what the SEC said is its largest fine against an auditor.

“EY acknowledges the findings determined by the SEC,” said Brendan Mullin, EY media relations director, adding that the firm’s response has been “thorough, extensive and effective.”

“At EY, nothing is more important than our integrity and our ethics.”

The CPA is the key qualification for accountants in the United States.

EY has also agreed to “undertake extensive remedial measures to fix the firm’s ethical issues,” the SEC said.

49 people got test answers ahead of time

The Wall Street watchdog found that 49 EY professionals “obtained or circulated” answer keys to CPA licence exams, while hundreds of others cheated to complete the continuing professional education components relating to CPA ethics.

“This action involves breaches of trust by gatekeepers … entrusted to audit many of our nation’s public companies. It’s simply outrageous that the very professionals responsible for catching cheating by clients cheated on ethics exams,” said Gurbir Grewal, the SEC’s enforcement director, in a statement.

“And it’s equally shocking that Ernst & Young hindered our investigation of this misconduct,” added Grewal.

EY submitted to the SEC that it did not have issues with cheating when, in fact, the firm had been informed of potential cheating on a CPA ethics exam by a member of staff, the SEC said.

It added that EY admitted it did not correct its submission even after an internal EY investigation confirmed there had been cheating, and even after its senior lawyers discussed the matter with the firm’s senior management.

The SEC’s order also finds that EY violated a Public Company Accounting Oversight Board (PCAOB) rule requiring the firm to maintain integrity in the performance of a professional service.

The SEC has ordered EY to retain two independent consultants to help remediate its deficiencies. One will review the firm’s policies and procedures relating to ethics and integrity. The other will review EY’s conduct regarding its disclosure failures, including whether any EY employees contributed to the firm’s failure to correct its misleading submission, the SEC said.

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