FX.co ★ Canadian Market Retreats After Recent Gains, Looks Headed For Weak Close

The Canadian stock market is suffering a downturn Wednesday afternoon, with the most significant losses seen in the industrial and communication sectors. Both the financial and technology sectors are also observed to be weak.

After a positive streak stretching five consecutive days, investors are now leveraging their earnings. This profit-taking is anticipated ahead of the key U.S. personal income and spending data scheduled for release later this week.

At one point, the benchmark S&P/TSX Composite Index dipped by 155.88 points or 0.7%, bringing it to 21,855.84.

Canadian National Railway (CNR.TO) experienced a close-to-4% drop after announcing a net income of $1,103 million for the first quarter, showing a decrease from 1,220 million the previous year.

On the other hand, First Quantum Minerals (FM.TO) saw approximately a 2.3% gain after reporting a reduced net loss for its first quarter. The loss of $159 million for the first quarter of 2024 is notably less than the $259 million net loss recorded for the same period last year.

The telecommunications giant Rogers Communications Inc (RCI.B.TO) reported a net income of $256 million for the first quarter, which is significantly lower in comparison to $511 million a year earlier. Their adjusted net income was $540 million this quarter, a slight decrease from $553 million the same time the previous year. This news resulted in over a 3% decrease in the company’s shares.

Retail company Metro Inc. (MRU.TO) revealed its net earnings for the second quarter amounted to $187.1 million, a decline of 14.5% from the same period in the previous year. Despite this, the company's stocks ascended by roughly 0.7%.

On the economic side, preliminary data indicates that Canadian retail sales likely saw no change in March 2024 when compared to the previous month. In February, retail sales marginally decreased by 0.1% month-on-month, while there was a 1.2% year-on-year increase in retail activity, succeeding a 0.9% rise in the month prior.

Finally, manufacturing sales in Canada were projected to have dropped by 2.8% in March 2024, counteracting the 0.7% growth seen in the preceding month, according to initial estimates.