Despite the optimism surrounding a potential interest rate cut by the Bank of Canada in June, the Canadian market remains tepid as of Friday afternoon. The sentiment is being dampened by data revealing slower-than-expected GDP growth.
Investors are currently assessing economic data from the United States alongside a series of Canadian earnings reports.
Statistics Canada reported that the Canadian economy grew at its fastest rate in a year during the early months of 2024, registering a 1.7% increase. However, this growth still fell short of expectations.
The benchmark S&P/TSX Composite Index is down by 77.81 points, or 0.35%, sitting at 21,993.90, a little past noon.
Materials and technology sectors are among the significant decliners, with several stocks in the financial sector also experiencing notable losses. Conversely, communications stocks are faring relatively well.
BRP Inc. (DOO.TO) has declined by 4.2%. The company reported a first-quarter net loss of C$7.4 million, or C$0.10 per share, compared to last year's profit of C$154.5 million, or C$1.92 per share. BRP updated its full-year 2025 normalized earnings guidance to a range of C$370 to C$450 million, with earnings per share projected between C$6.00 and C$7.00.
Laurentian Bank of Canada (LB.TO) has dropped by 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. This compares to a net income of C$49.3 million and a profit per share of C$1.11 from the previous year.
Canadian Western Bank (CWB.TO) has fallen over 5%. The bank recorded a second-quarter net income of C$76 million and adjusted earnings per common share of C$0.81, both reflecting a 9% increase from the prior year.
Celestica Inc. (CLS.TO) is down by 6.7%. Canadian Imperial Bank of Commerce (CM.TO) is down by 3.2%, and EQB Inc. (EQB.TO) is lower by about 3.1%.
Other notable decliners include RB Global (RBA.TO), Dayforce (DAY.TO), Agnico Eagle Mines (AEM.TO), and Boyd Group Services (BYD.TO).
On the positive side, 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) have all gained between 1% and 2.5%.
