Wall Street was set for a strong open on Thursday as better-than-expected results from Meta Platforms, Eli Lilly and Comcast outweighed data showing the U.S. economy slowed more than anticipated in the first quarter.
Meta Platforms Inc soared 14.6% in premarket trading as it forecast quarterly revenue above estimate, with CEO Mark Zuckerberg saying that Artificial Intelligence was increasing traffic to Facebook and Instagram and boosting ad sales.
Eli Lilly and Co advanced 3.1% on raising its full-year profit forecast, while Merck & Co gained 2.3% on better-than-expected first-quarter results.
Comcast Corp rose 4.9% as it beat estimates for quarterly revenue and profit, thanks to sustained demand for its broadband services and higher theme park attendance.
Raising worries about the economy, gross domestic product (GDP) increased at a 1.1% annualized rate last quarter, the Commerce Department said in its advance estimate for first-quarter growth, while economists polled by Reuters had estimated a 2.0% expansion.
“January was really the standout month and since then we’ve seen weakness in February and March, which has really been slowly dragging down the economy,” said Brian Klimke, investment director at Cetera Investment Management.
Despite the slowdown, which mostly reflected a drag from weak inventory investment, the Federal Reserve is expected to raise interest rates by another 25 basis points next week.
A separate report showed initial claims for state unemployment benefits decreased 16,000 to a seasonally adjusted 230,000 for the week ending April 22. Economists had expected 248,000 claims in the latest week.
The decline in first-quarter earnings is estimated to be smaller than analysts had expected at the start of the month, with a host of tech names such as Microsoft Corp and Alphabet reporting upbeat results this week.
Amazon.com Inc and Intel are among the big names set to report after markets close.
The S&P 500 closed at near one-month low on Wednesday after lingering concerns about a weakening U.S. economy were exacerbated by a fresh plunge in First Republic Bank’s shares after a report said the U.S. government was unwilling to engineer its rescue.
At 8:57 a.m. ET, Dow e-minis were up 163 points, or 0.49%, S&P 500 e-minis were up 23.5 points, or 0.58%, and Nasdaq 100 e-minis were up 133.75 points, or 1.04%.
The U.S. House of Representatives on Wednesday narrowly passed a bill to raise the government’s $31.4 trillion debt ceiling that includes sweeping spending cuts over the next decade. The bill is expected to get stalled in the Senate.
EBay Inc climbed 2.6% after the e-commerce company forecast current-quarter revenue above projections. (Reporting by Sruthi Shankar and Ankika Biswas in Bengaluru Editing by Vinay Dwivedi)
NANAIMO, B.C. – Former Bank of Canada governor Mark Carney will chair a Liberal task force on economic growth, the party announced Monday as Liberal MPs meet to strategize for the upcoming election year.
Long touted as a possible leadership successor to Prime Minister Justin Trudeau, Carney was already scheduled to address caucus as part of the retreat in Nanaimo, B.C., this week.
The Liberals say he will help shape the party’s policies for the next election, and will report to Trudeau and the Liberal platform committee.
“As chair of the Leader’s Task Force on Economic Growth, Mark’s unique ideas and perspectives will play a vital role in shaping the next steps in our plan to continue to grow our economy and strengthen the middle class, and to urgently seize new opportunities for Canadian jobs and prosperity in a fast-changing world,” Trudeau said in a statement Monday.
Trudeau is expected to address Liberal members of Parliament later this week. It will be the first time he faces them as a group since MPs left Ottawa in the spring.
Still stinging from a devastating byelection loss earlier this summer, the caucus is now also reeling from news that its national campaign director has resigned and the party can no longer count on the NDP to stave off an early election.
Last week, NDP Leader Jagmeet Singh ended his agreement with Trudeau to have the New Democrats support the government on key votes in exchange for movement on priorities such as dental care.
All of this comes as the Liberals remain well behind the Conservatives in the polls despite efforts to refocus on issues like housing and affordability.
Some Liberal MPs hope to hear more about how Trudeau plans to win Canadians back when he addresses his team this week.
Carney appears to be part of that plan, attempting to bring some economic heft to a government that has struggled to resonate with voters who are struggling with inflation and soaring housing costs.
Trudeau said several weeks ago that he has long tried to coax Carney to join his government. The economist and former investment banker spent five years as the governor of the Bank of Canada during the last Conservative government before hopping across the pond to head up the Bank of England for seven years.
Carney is just one of a host of names suggested as possible successors to Trudeau, who has insisted he will lead the party into the next election despite simmering calls for him to step aside.
Those calls reached a new intensity earlier this summer when the Conservatives won a longtime Liberal stronghold in a major byelection upset in Toronto—St. Paul’s.
But Trudeau held fast to his decision to stay and rejected calls to convene his entire caucus over the summer to respond to their concerns about their collective prospects.
The prime minister has spoken with Liberal MPs one-on-one over the last few months and attended several regional meetings ahead of the Nanaimo retreat, including Ontario and Quebec, which together account for 70 per cent of the caucus.
While several Liberals who don’t feel comfortable speaking publicly say the meetings were positive, the party leader has mainly held to his message that he is simply focused on “delivering for Canadians.”
Conservative House leader Andrew Scheer was in Nanaimo ahead of the meeting to express his scorn for the Liberal strategy session, and for Carney’s involvement.
“It doesn’t matter what happens in this retreat, doesn’t matter what kinds of (communications) exercise they go through, or what kind of speculation they all entertain about who might lead them in the next election,” said Scheer, who called a small press conference on the Nanaimo harbourfront Monday.
“It’s the same failed Liberal policies causing the same hardships for Canadians.”
He said Carney and Trudeau are “basically the same people,” and that Carney has supported Liberal policies, including the carbon tax.
The three-day retreat is expected to include breakout meetings for the Indigenous, rural and women’s caucuses before the full group convenes later this week.
This report by The Canadian Press was first published Sept. 9, 2024.
The Canadian Press. All rights reserved.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
The Canadian Press. All rights reserved.
OTTAWA – Canada’s national unemployment rate was 6.6 per cent in August. Here are the jobless rates last month by province (numbers from the previous month in brackets):
_ Newfoundland and Labrador 10.4 per cent (9.6)
_ Prince Edward Island 8.2 per cent (8.9)
_ Nova Scotia 6.7 per cent (7.0)
_ New Brunswick 6.5 per cent (7.2)
_ Quebec 5.7 per cent (5.7)
_ Ontario 7.1 per cent (6.7)
_ Manitoba 5.8 per cent (5.7)
_ Saskatchewan 5.4 per cent (5.4)
_ Alberta 7.7 per cent (7.1)
_ British Columbia 5.8 per cent (5.5)
This report by The Canadian Press was first published Sept. 6, 2024.
The Canadian Press. All rights reserved.
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