By Bansari Mayur Kamdar and Johann M Cherian
(Reuters) – Canada’s main stock index slipped on Thursday following a mixed bag of results, while gloomy forecasts by U.S. companies and an early reading showing the economy contracted again on the other side of the border exacerbated recession fears.
At 10:22 a.m. ET (14:22 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was down 48.77 points, or 0.25%, at 19,205.79.
Weighing on the index, Bausch Health dropped 51.4% to its lowest level in more than 25 years, dragging the healthcare index down 13.3%.
The materials sector rose 0.7%, as the expectations of slower rate hikes by the Fed and a weakened dollar lifted commodity prices. [MET/] [GOL/]
Agnico Eagle Mines Ltd jumped 5.8% on reporting better-than-expected quarterly earnings, while cannabis producer Tilray Brands gained 6.7% on a jump in revenue.
“Resource industries should continue to see a pretty robust earnings growth,” said Angelo Kourkafas, investment strategist at Edward Jones Investments.
“At the same time, the analyst estimates are still fairly optimistic. Given that we have a more challenging macroeconomic environment, we are likely to see some downward earnings revisions, which could weigh on sentiment a bit.”
Cenovus Energy Inc slipped 1.1% even as it reported a near 11-fold surge in second-quarter profit, helped by its purchase of rival Husky and rising energy prices after the Russian invasion of Ukraine.
“There were some expectations that they will do a little more both in terms of dividend bump and and earnings growth,” said Greg Taylor, portfolio manager at Purpose Investments.
Ballard Power Systems jumped 11.6%, tracking the jump in U.S. clean energy stocks after Democratic Senator Joe Manchin, a key swing vote, told Senate Majority Leader Chuck Schumer on Wednesday he will now support proposal for new climate change spending.
The financials sector slipped 0.5%, while the industrials sector rose 0.1%.
(Reporting by Bansari Mayur Kamdar and Johann M Cherian in Bengaluru; Editing by Shailesh Kuber)