The Canadian market experienced a significant downturn on Thursday, influenced by substantial sell-offs across various sectors. Negative sentiment was fueled by disappointing earnings reports from U.S. technology giants Microsoft Inc. and Meta Platforms, combined with uncertainty regarding future interest rate cuts.
The S&P/TSX Composite Index saw a decline of 350.92 points, or 1.43%, closing at 24,156.87. The index reached a session low of 24,098.49, marking a three-week low. Key sectors such as technology, materials, consumer staples, real estate, financials, and energy recorded significant declines. Consumer discretionary and industrial sectors also suffered notable losses, whereas healthcare stocks showed some resilience.
Open Text Corporation (OTEX.TO) dropped 11.1% after reporting a first-quarter net income of $84 million, a slight increase from $81 million in the previous year. Badger Infrastructure Solutions (BDGI.TO) fell 10.5%, reporting adjusted net earnings of $25 million for the three months ending September 30, 2024, compared to $23.8 million in the same quarter the previous year.
Morguard Corporation (MRC.TO) closed down 4.4%, while West Fraser Timber (WFG.TO) experienced a 3.7% loss. Constellation Software (CSU.TO), Canadian Tire Corporation (CTC.A.TO), Franco-Nevada Corporation (FNV.TO), and Descartes Systems Group (DSG.TO) saw reductions between 2.2% and 3.1%.
Among other stocks, Royal Bank of Canada (RY.TO), Loblaw Companies (L.TO), George Weston (WN.TO), Thomson Reuters (TRI.TO), Intact Financial Corporation (IFC.TO), FirstService Corporation (FSV.TO), and Fairfax Financial Holdings (FFH.TO) decreased between 1.2% and 2%.
In contrast, Bausch Health Companies (BHC.TO) surged by 12.7% following its report of the sixth consecutive quarter of year-over-year growth in both Revenue and Adjusted EBITDA. The company announced third-quarter consolidated revenues of $2.51 billion, representing a 12% increase on a reported basis and a 9% increase on an organic basis, with growth across all segments.
Capital Power Corporation (CPX.TO) rose approximately 4%, while Gildan Activewear (GIL.TO) recorded a modest gain of 1.3% after announcing third-quarter net earnings of $131.5 million, up from $127.4 million from the same period last year. Rogers Communications (RCI.A.TO), Dayforce (DAY.TO), and Emera Incorporated (EMA.TO) advanced between 1% and 1.8%.
According to Statistics Canada, the country's GDP likely expanded by 0.3% in September. Economic growth in August, however, remained stagnant, aligning with preliminary forecasts and market expectations. Additionally, Canadian wages increased by 4.6% in August 2024 compared to the same month in the previous year, as reported by Statistics Canada.
A report from the Canadian Federation of Independent Business indicated that the CFIB's Business Barometer, a long-term index reflecting 12-month forward expectations for business performance in Canada, increased to 55.8 in October 2024, up from an upwardly revised 55.1 in September.
