Canadian Market Modestly Lower; Bank Stocks Lose Ground On Earnings

(RTTNews) - Despite optimism about an interest rate cut by the Bank of Canada in June, the Canadian market remains weak a little past noon on Friday as data showing a less than expected growth of the nation's GDP weigh on sentiment.

Investors are digesting economic data from the U.S. and a slew of Canadian earnings updates.

Data from Statistics Canada showed the nation's economy grew at its fastest pace in a year in the early months of 2024, at a rate of 1.7%, but still missed expectations.

The benchmark S&P/TSX Composite Index is down 77.81 points or 0.35% at 21,993.90 nearly half an hour past noon.

Materials and technology stocks are among the major losers. A few stocks from financials sector also notably lower. Communications stocks are faring reasonably well.

BRP Inc. (DOO.TO) is down 4.2%. The company reported first-quarter net loss of C$7.4 million or C$0.10 per share, compared to profit of C$154.5 million or C$1.92 per share a year ago. The company updated its full-year 2025 normalized earnings guidance in a range of C$370 to C$450 million and earnings per share in a range of C$6.00 to C$7.00.

Laurentian Bank of Canada (LB.TO) is down 5.7% after reporting a net loss of C$117.5 million and a loss per share of C$2.71 for the second quarter of 2024, compared with net income of C$49.3 million and profit per share of C$1.11, prior year.

Canadian Western Bank (CWB.TO) is down more than 5%. The bank reported second-quarter net income of $76 million and adjusted earnings per common share of $0.81, both up 9% from the prior year.

Celestica Inc (CLS.TO) is declining 6.7%. Canadian Imperial Bank of Commerce (CM.TO) is down 3.2% and EQB Inc (EQB.TO) is lower by about 3.1%.

RB Global (RBA.TO), Dayforce (DAY.TO), Agnico Eagle Mines (AEM.TO) and Boyd Group Services (BYD.TO) are also notably lower.

Labrador Iron Ore (LIF.TO), Ag Growth International (AFN.TO), Canadian Tire Corporation (CTC.A.TO), Bombardier Inc (BBD.B.TO), Restaurant Brands International (QSR.TO) and Precision Drilling Corporation (PD.TO) are gaining 1 to 2.5%.