TOP NEWS • Bank of Canada turns to interest rate guidance as it battles inflation Faced with runaway inflation, Canada's central bank has taken the rare step of providing guidance on the path of interest rates, as it aims to keep expectations anchored while it unwinds stimulus in an overheating economy.
• Pfizer to buy Biohaven Pharmaceutical in $11.6 billion deal Pfizer said it will buy migraine drug maker Biohaven Pharmaceutical Holding Company for about $11.6 billion in cash.
• Tesla halts most output at Shanghai plant, April sales dive Tesla has halted most of its production at its Shanghai plant due to problems securing parts for its electric vehicles, according to an internal memo seen by Reuters, the latest in a series of difficulties for the factory.
• Walgreens, CVS, Walmart begin $878 million opioid trial in Ohio CVS Health, Walgreens Boots Alliance and Walmart begin a first-of-its-kind trial to determine what the pharmacy chains owe for their role in the opioid epidemic in two Ohio counties, which are seeking $878 million.
• Suncor Energy beats profit estimates, weighs UK portfolio sale Suncor Energy Inc exceeded analysts' estimates for first-quarter profit and boosted dividend by 12% to its highest level on Monday, as Canada's No.3 oil major benefited from soaring crude prices.
BEFORE THE BELL Canada's main stock index was set to open higher after its worst session in nearly two years, but the sentiment remained fragile due to worries over global economic growth. Wall Street’s major index futures and European stocks rose as bargain hunters returned to buy beaten-down shares following a bruising selloff. Japan's Nikkei fell for a second day, but avoided bigger losses, while China stocks rebounded on Beijing's vows to support the struggling economy. The U.S. dollar index edged higher, having reached a 20-year high in the previous session. In commodities, oil prices extended losses, hurt by a combination of growing recession fears and COVID-19 lockdowns in China, while gold prices were little changed.
STOCKS TO WATCH
Results • Suncor Energy Inc: The company exceeded analysts' estimates for first-quarter profit and boosted dividend by 12% to its highest level on Monday, as the oil major benefited from soaring crude prices. Suncor's UK assets are offshore in the North Sea, and include a 29.9% stake in the Buzzard field as well as a 40% interest in the Roseback project. Its total production fell to 766,100 barrels of oil equivalent per day (boepd) from 785,900 boepd a year earlier. Its refinery throughput was 436,500 barrels per day, up marginally from a year ago. The company reported on Monday a net income of C$2.95 billion, or C$2.06 per share, for the three months ended March 31, up from C$821 million, or 54 Canadian cents, a year ago. Excluding items, the company posted adjusted operating earnings of C$1.92, beating analysts' expectations of C$1.51. Separately, the company on Monday issued an "all-clear" following a fire in a gasoline-making unit at its 103,000-barrel-per-day Commerce City refinery in Colorado, according to an alert notification. Emergency response teams extinguished the fire in Plant 1, a gasoline-making unit at the refinery, it reported. "All workers are accounted for and there are no reported injuries," the notification said, adding the cause is under investigation.
In Other News • Parkland Corp: The company on Monday outlined plans to spend C$600 million expanding renewable fuel production at its Burnaby, British Columbia, refinery. The project is subject to a final investment decision, due in the second half of 2023. If it goes ahead, Parkland will boost the refinery's co-processing volumes to 5,500 barrels per day (bpd) from 1,500 bpd currently, and build a stand-alone 6,500 bpd renewable diesel complex that will be the largest in British Columbia. Parkland said the project will create up to 1,000 jobs during construction, and produce cleaner fuels that will cut greenhouse gas emissions from transportation by approximately two megatonnes a year. Production is expected to start in 2026. The company has received provincial government support for more than 40% of the project cost in the form of credits generated by compliance with British Columbia's Low Carbon Fuel Standard, which requires fuel suppliers to progressively decrease the average carbon intensity of their product.
INSIGHT U.S. producers undo years of efficiency gains in fight for supplies U.S. manufacturers are finding that their main weapon to fight supply chain snarls is greater inefficiency. Industrial companies reporting earnings over the past few weeks have described steps they've taken - from acquiring trucks to move their own goods to building products that sit around on factory floors waiting for missing semiconductors - to deal with delays and shortages that have dogged them over the past year.
ANALYSTS' RECOMMENDATION • Aurora Cannabis Inc: ATB Capital Markets cuts target price to C$4 from C$5, citing challenging near-term outlook due to lackluster recreational sales, lumpy international sales, and a shrinking Canadian medical cannabis market.
• Ensign Energy Services Inc: RBC raises target price to C$6.50 from C$6, due to higher rig utilization and margin improvement from stronger pricing.
• Morguard Corp: CIBC cuts target price to C$165 from C$180, given the current rate environment.
ECONOMIC EVENTS (All timings in U.S. Eastern Time) 0600 (approx.) Leading index mm for April: Prior -0.05%
COMPANIES REPORTING RESULTS May 10: Altius Minerals Corp: Expected Q1 earnings of 22 Canadian cents per share Bausch Health Companies Inc: Expected Q1 earnings of $1.00 per share Converge Technology Solutions Corp: Expected Q1 earnings of 7 Canadian cents per share Cronos Group Inc: Expected Q1 loss of 7 cents per share Equitable Group Inc: Expected Q1 earnings of C$2.10 per share Exchange Income Corp: Expected Q1 earnings of 10 Canadian cents per share Freehold Royalties Ltd: Expected Q1 earnings of 20 Canadian cents per share Innergex Renewable Energy Inc: Expected Q1 loss of 1 Canadian cent per share Intact Financial Corp: Expected Q1 earnings of C$2.37 per share Ivanhoe Mines Ltd: Expected Q1 earnings of 6 cents per share Keyera Corp: Expected Q1 earnings of 46 Canadian cents per share Kinross Gold Corp: Expected Q1 earnings of 7 cents per share Northland Power Inc: Expected Q1 earnings of 48 Canadian cents per share Nuvei Corp: Expected Q1 earnings of 41 cents per share Nuvista Energy Ltd: Expected Q1 earnings of 23 Canadian cents per share Superior Plus Corp: Expected Q1 earnings of 68 Canadian cents per share Tricon Residential Inc: Expected Q1 earnings of 12 cents per share Turquoise Hill Resources Ltd: Expected Q1 earnings of 28 cents per share
May 11: Birchcliff Energy Ltd: Expected Q1 earnings of 32 Canadian cents per share Boralex Inc: Expected Q1 earnings of 37 Canadian cents per share Boyd Group Services Inc: Expected Q1 earnings of 10 cents per share CCL Industries Inc: Expected Q1 earnings of 76 Canadian cents per share Fortuna Silver Mines Inc: Expected Q1 earnings of 10 cents per share goeasy Ltd: Expected Q1 earnings of C$2.82 per share Interfor Corp: Expected Q1 earnings of C$7.04 per share Manulife Financial Corp: Expected Q1 earnings of 82 Canadian cents per share MDA Ltd: Expected Q1 loss of 2 Canadian cents per share Osisko Gold Royalties Ltd: Expected Q1 earnings of 7 Canadian cents per share Pan American Silver Corp: Expected Q1 earnings of 24 cents per share Peyto Exploration & Development Corp: Expected Q1 earnings of 55 Canadian cents per share Power Corporation of Canada: Expected Q1 earnings of 95 Canadian cents per share Sandstorm Gold Ltd: Expected Q1 earnings of 5 cents per share Stantec Inc: Expected Q1 earnings of 59 Canadian cents per share Stella-Jones Inc: Expected Q1 earnings of 68 Canadian cents per share Sun Life Financial Inc: Expected Q1 earnings of C$1.41 per share Torex Gold Resources Inc: Expected Q1 earnings of 41 cents per share Trican Well Service Ltd: Expected Q1 earnings of 6 Canadian cents per share Vermilion Energy Inc: Expected Q1 earnings of C$1.87 per share Wesdome Gold Mines Ltd: Expected Q1 earnings of 12 Canadian cents per share WSP Global Inc: Expected Q1 earnings of C$1.10 per share
CORPORATE EVENTS (All timings in U.S. Eastern Time) 0800 Bausch Health Companies Inc: Q1 earnings conference call 0800 Element Fleet Management Corp: Q1 earnings conference call 0830 Cronos Group Inc: Q1 earnings conference call 0830 Hudbay Minerals Inc: Q1 earnings conference call 0830 Nuvei Corp: Q1 earnings conference call 0830 Pet Valu Holdings Ltd: Q1 earnings conference call 0930 Cameco Corp: Annual Shareholders Meeting 0930 Suncor Energy Inc: Q1 earnings conference call 1000 Finning International Inc: Q1 earnings conference call 1000 Keyera Corp: Q1 earnings conference call 1030 Ivanhoe Mines Ltd: Q1 earnings conference call 1100 Ritchie Bros Auctioneers Inc: Q1 earnings conference call 1130 Ero Copper Corp: Q1 earnings conference call 1200 Keyera Corp: Annual Shareholders Meeting 1230 Suncor Energy Inc: Annual Shareholders Meeting 1400 Hudbay Minerals Inc: Annual Shareholders Meeting 1530 Element Fleet Management Corp: Annual Shareholders Meeting 1600 Innergex Renewable Energy Inc: Annual Shareholders Meeting 1600 Superior Plus Corp: Annual Shareholders Meeting 1700 Finning International Inc: Annual Shareholders Meeting 1700 Nuvista Energy Ltd: Annual Shareholders Meeting 1730 Innergex Renewable Energy Inc: Q1 earnings conference call 1800 Freehold Royalties Ltd: Annual Shareholders Meeting
EX-DIVIDENDS There are no major ex-divs for the day.
(All analysts' estimates are according to I/B/E/S Refinitiv data)
|