Bay Street Likely To Open On Mixed Note

(RTTNews) - Canadian shares are likely to turn in a mixed performance in early trades Thursday, with investors reacting to earnings updates from major banks, and digesting U.S. and Canadian economic data.

Royal Bank of Canada (RY.TO) reported net income of $4.0 billion for the quarter ended April 30, 2024 , up $270 million or 7% from the prior year.

Canadian Imperial Bank of Commerce (CM.TO) reported adjusted net income of $1,718 million for the second quarter, compared to $1,628 million a year ago.

Canopy Growth Corporation (WEED.TO) reported fourth-quater net loss of C$92.3 million, or C$1.03 a share, compared to net loss of C$640.1 million, or C$12.83 a share, in the year-ago quarter.

A report from the Canadian Federation of Independent Business said its business barometer in Canada, reflecting 12-month forward expectations for business performance in the country, climbed to 56.4 in May from an upwardly revised 47.6 in the prior month.

Revised data released by the Commerce Department on Thursday showed U.S. economic growth slowed by more than previously estimated in the first quarter of 2024. The Commerce Department said gross domestic product climbed by 1.3% in the first quarter compared to the previously reported 1.6% growth.

Meanwhile, first-time claims for U.S. unemployment benefits crept modestly higher in the week ended May 25th, according to a report released by the Labor Department.

Canadian stocks tumbled on Wednesday on concerns the Federal Reserve might keep interest rates higher for longer in the event of U.S. inflation readings coming in hotter than expected.

Selling was widespread, with financials, utilities, materials and energy sectors suffering sharp losses. Several shares from consumer discretionary, real estate, communications and industrials sectors also ended sharply lower.

The benchmark S&P/TSX Composite Index, which opened with a negative gap of nearly 100 points at 22,170.16 (it remained the day's high), ended with a loss of 367.07 points or 1.65% at 21,897.98, a point off the day's low.

Asian stocks ended sharply lower on Thursday, as the dollar and U.S. bond yields continued to surge on bets that global interest rates will stay higher for longer.

Traders also looked ahead to the release of key inflation readings from the eurozone and the U.S. for additional clues on the future path of monetary policy.

European stocks are slightly higher after two days of selling on inflation and interest-rate concerns. Investors are digesting the latest batch of regional economic data.

Eurostat data showed the euro-area seasonally adjusted unemployment rate fell from 6.5% to 6.4% in April, below expectation of 6.5%.

The euro area economic sentiment indicator ticked up from 95.6 to 96.0 in May, matching expectations.

In commodities, West Texas Intermediate Crude oil futures are down $0.37 or 0.47% at $78.86 a barrel.

Gold futures are gaining $21.00 or 0.9% at $2,362.20 an ounce, while Silver futures are down $0.913 or 2.82% at $31.460 an ounce.