US stocks closed lower Tuesday on Wall Street concerns that the debt-ceiling debate in Washington won’t reach a resolution.
The S&P 500 (^GSPC) ended the session down 1.12%. The Dow Jones Industrial Average (^DJI) dipped 0.69%, or more than 200 points. The technology-heavy Nasdaq Composite (^IXIC) declined more than 1.26%.
In Treasuries, yields moved lower across the curve Tuesday, with the benchmark 10-year yield edged down to 3.7%. Two-year yields climbed to 4.34%, and those on the 30-year bond ticked lower to 3.95%. The extended losses came as worries over the debt-ceiling standoff intensified, as the prospect of a default moves closer.
Tuesday’s negotiation talks initially provided some hope a deal could be reached. That followed optimistic remarks from President Biden and House Speaker Kevin McCarthy the previous day.
But McCarthy reportedly said in a closed-door meeting to Republican colleagues that “we are nowhere near a deal yet” hours after saying in the Oval Office “I think, at the end of the day, we can find common ground.”
The back-and-forth has left investors on edge in the countdown to the June 1 “X-date”, which is when Treasury Secretary Janet Yellen said a default is likely to come.
“Our base case remains that the debt ceiling ultimately does get lifted/suspended though the journey to that end could be at the eleventh hour and drive significantly higher market instability than appreciated by the market currently,” Dubravko Lakos, chief US equity strategist at JPMorgan, wrote in a note Monday.
“We expect a temporary/comprehensive deal on the debt ceiling to negatively impact federal spending and for a likely contentious budget negotiation process later this year,” Lakos added.
On the economic front, S&P Global’s flash US composite PMI, which captures activity in both the services and manufacturing sectors, came in at 54.5 in May, up from 53.4 in April and better than the 53.0 estimated by economists, marking a 13-month gain for the index.
Separately, new single-family home sales rose 4.1% in April to an annualized pace of 683,000, down revised rate of 656,000, according to a report from the Census Bureau. That’s still 11.8% above the year-ago level and higher than the Bloomberg consensus expectations of 665,000 units for April.
In single stock moves, shares of Yelp Inc. (YELP) rallied over 5% as activist investor TCS Capital Management confirmed its stake in the company and asked the company to explore strategic alternatives including a sale, according to an open letter to the Yelp board of directors on Tuesday.
Lowe’s Companies, Inc. (LOW) shares gained more 2% after the home-improvement company cut its full-year sales forecast Tuesday, citing lower demand as high inflation impacts discretionary spending. While Apple (AAPL) said it has entered a multi-billion dollar deal with chipmaker Broadcom Inc. (AVGO) to use chips made in the US. Shares of the tech-giant slid more than 1%.
Elsewhere, shares of Dick’s Sporting Goods (DKS) moved lower after the company topped its first fiscal quarter sales and earnings, while maintaining its outlook for this year
Zoom Video Communications, Inc. (ZM) shares dropped more than 7% after the videoconferencing software company posted a beat on their results for its fiscal first quarter. The company also raised its full-year guidance.
Shares of Pfizer Inc. (PFE) rose after a study showed positive weight-loss results for patients taking the drug maker’s oral diabetes treatment.
BJ’s Wholesale Club Holdings, Inc. (BJ) shares declined more than 7% after the retailer reported revenue that came in below analysts expectations. Comparable club sales not including gasoline were lower than anticipated.
In the meantime, Netflix (NFLX) is cracking down on password sharing in the US. The company broke the news in a blog post Tuesday afternoon.
After the closing bell, Palo Alto Networks, Inc. (PANW), Intuit Inc. (INTU) and Toll Brothers, Inc. (TOL) are expected to report results.
_____
Dani Romero is a reporter for Yahoo Finance. Follow her on Twitter @daniromerotv
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.
