When the bell rang on Wall Street, the S&P 500 was off 1.1%, the Dow down 1%, and the tech-heavy Nasdaq fell 1.1%.
Tuesday’s drop came as economic data continues to show resilience in the U.S. economy after early summer fears about the economy falling into recession. A stronger economy likely emboldens the Fed to continue raising interest rates.
The Labor Department’s Job Openings and Labor Turnover Survey, or JOLTS report, showed U.S. job openings rose to 11.2 million last month, pointing to continued tightness in the labor market as employers struggle to fill vacancies. Economists surveyed by Bloomberg expected 10.375 million openings in July. June’s data also reflected a sharp upward revision from 10.698 million openings to 11 million.
A reading from the Conference Board Tuesday morning also showed U.S. consumer confidence rose in August after three straight months of declines as Americans scaled back their pessimism about the economy on falling gas prices.
The index rose to 103.2 in August from a downwardly revised reading of 95.3 last month. Economists called for a print of 98, according to Bloomberg data.
On the housing front, the Standard & Poor’s CoreLogic Case–Shiller Home Price Index showed an 18.0% annual increase in June, down from 19.9% in the previous month. The 20-City Composite saw an 18.6% year-over-year gain, compared to 20.5% the prior month.
In commodities, oil prices fell more than 5% amid renewed worries that a global recession would dent demand and following stronger-than-expected export data from Iraq.
West Texas Intermediate crude oil logged its biggest drop in two weeks, plunging 5.5% to below $92 per barrel, while Brent futures sank 5.6% to $99.25 per barrel. Tuesday’s move saw oil prices give up all of their gains from Monday.
Meanwhile in the stock market, shares of Nikola (NKLA) plunged 9% on Tuesday after the electric-vehicle maker said it may execute a stock sale to raise up to $400 million for production costs as it grapples with higher prices on labor and raw materials.
Bed Bath & Beyond Inc. (BBBY) shares fell about 10% as investors await a strategic update from the company later this week. The meme stock has soared this month and is on pace for a record monthly gain in August after surging more than 170%.
A person exits a Bed Bath & Beyond store in Manhattan, New York City, U.S., June 29, 2022. REUTERS/Andrew Kelly
Shares of Chinese search engine Baidu (BIDU) fell over 6% after the company reported quarterly revenue on Tuesday that beat estimates, buoyed by growth in its cloud business. The company, however, unveiled its first annual contraction in quarterly revenue in two years.
“Stocks had a reasonable shot at a second-straight up week last Thursday, but the bearish reaction to Powell’s Jackson Hole speech pushed the market decisively into the red,” Chris Larkin, managing director of trading at Morgan Stanley’s E*TRADE said in a note. “While it’s a busy week of economic data, the job report on Friday will be the most watched as investors and the Fed get another read on the labor market.”
August employment data from the Labor Department is set for release at 8:30 a.m. ET Friday morning and is expected to show another strong month for the U.S. labor market. Economists project nonfarm payrolls rose by 300,000 in August, according to data from Bloomberg. The figure is likely to serve a key role in dictating the Federal Reserve’s next rate decision at its policy-setting meeting later this month.
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Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc
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.
