What every Canadian investor needs to know today

Global markets were mixed after Wall Street scaled record highs yesterday while Chinese stocks tumbled as Beijing’s efforts to boost the economy underwhelmed investors.
Wall Street’s main indexes were mixed as investors took in quarterly earnings. The Dow Jones Industrial Average fell 0.34 per cent to 42,916.75, the S&P 500 gained 0.09 per cent to 5,864.89, and the Nasdaq Composite climbed 0.18 per cent to 18,535.07.
The Toronto Stock Exchange’s S&P/TSX composite index opened 0.25 per cent lower at 24,411.12, weighed down by energy stocks and the markets weighed September inflation data. The annual rate fell to 1.6 per cent, much lower than the consensus estimate of 1.8 per cent and below the central bank’s 2-per-cent target.
How market bets and economist views for future BoC rate cuts have shifted after today’s inflation data
In Canada, investors are getting results from A&W Revenue Royalties Income Fund.
On Wall Street, markets are watching earnings from Bank of America, Citigroup Inc., Goldman Sachs Group Inc., Johnson & Johnson, United Airlines Holdings Inc., UnitedHealth Group Inc. and Walgreens Boot Alliance Inc.
New highs beget new highs and price momentum is the most powerful investment factor,” said Ben Laidler, head of equity strategy at Bradesco BBI.
“Super-sized tech stocks are taking the lead as they get ready to report the strongest earnings growth of all sectors again this quarter.”
Overseas, the pan-European STOXX 600 was little changed in morning trading. Britain’s FTSE 100 fell 0.38 per cent, Germany’s DAX gained 0.28 per cent and France’s CAC 40 gave back 0.82 per cent.
In Asia, Japan’s Nikkei closed 0.77 per cent higher, while Hong Kong’s Hang Seng fell 3.67 per cent.
Oil prices slid on the back of a weaker demand outlook and after a media report said Israel is willing not to strike Iranian oil targets, which eased fears of a supply disruption.
Brent crude futures were down 4.3 per cent to US$74.17 a barrel, and West Texas Intermediate (WTI) futures fell 4.6 per cent to US$70.45 a barrel.
“Weakening demand has led to traders withdrawing the ‘war premium’ from prices,” said Priyanka Sachdeva, senior market analyst at Phillip Nova.
“However, geopolitics still continues to support oil at this level. Without geopolitics in the equation, oil would have tumbled even more … amid the current weakening demand narrative.”
In other commodities, spot gold was steady at US$2,652.72 an ounce, and U.S. gold futures rose 0.1 per cent to US$2,669.20.
The Canadian dollar weakened against its U.S. counterpart.
The day range on the loonie was 72.25 US cents to 72.56 US cents in early trading. The Canadian dollar was down about 1.74 per cent against the greenback over the past month.
The U.S. dollar index, which weighs the greenback against a group of currencies, declined 0.17 per cent to 103.01 after reaching a two-month high yesterday.
The euro slid 0.02 per cent to US$1.0909. The British pound rose 0.16 per cent to US$1.3080.
In bonds, the yield on the U.S. 10-year note was last down at 4.057 per cent.
Goldman Sachs’ profit jumped 45 per cent in the third quarter as the investment bank benefited from a rebound in deal-making. Total profit was US$2.99-billion or US$8.40 per share, for the three months ended Sept. 30, compared with US$2.06 billion or US$5.47 per share, a year ago.
Bank of America has reported a drop in third-quarter profit, as its income from customer interest payments shrank. The second-largest U.S. bank’s net income fell to US$6.9-billion or 81 U.S. cents per share from US$7.8-billion or 90 U.S. cents per share a year earlier.
Citigroup’s profit fell 9 per cent in the third quarter as it set aside more money to cover the risk of loan defaults, particularly on credit cards. The third-largest U.S. lender’s net income dropped to US$3.2-billion or US$1.51 per share, compared with US$3.5-billion or US$1.63 per share, a year earlier.
Johnson & Johnson has raised its 2024 profit and sales forecasts after reporting strong sales of oncology drugs and quarterly results that beat Wall Street expectations.
Walgreens Boots Alliance says it will shut 1,200 stores over the next three years as new CEO Tim Wentworth plots a turnaround at the struggling pharmacy chain operator. The company also narrowly beat Wall Street’s lowered estimates for fourth-quarter adjusted profit.
Japan and Euro zone industrial production
(8:30 a.m. ET) Canada’s CPI for September, which fell to an annualized 1.6 per cent, much lower than the consensus estimate of 1.8 per cent.
(8:30 a.m. ET) Canada’s wholesale trade for August. Estimate is a month-over-month decline of 1.1 per cent.
(8:30 a.m. ET) Canadian new motor vehicle sales for August. Estimate is a jump of 6.0 per cent year-over-year.
(9 a.m. ET) Canadian existing home sales and average prices for September. Home sales rose 1.9 per cent from August and were up 6.9 per cent on an annual basis, CREA data showed.
(9 a.m. ET) Canada’s MLS Home Price Index for September. Estimate is a year-over-year decline of 3.5 per cent.
(8:30 a.m. ET) U.S. Empire State Manufacturing Survey for October.
(2 p.m. ET) U.S. budget balance for September.
With Reuters and The Canadian Press