• Bank of America profit beats on boost from reserve release, lending
Bank of America beat estimates for third-quarter profit, as it released reserves of $1.1 billion and recorded strong growth in its lending and equity-trading divisions.
• Canopy eyes U.S. expansion with weed gummies maker Wana Brands' acquisition
Canopy Growth said it would buy weed gummies maker Wana Brands for $297.5 million, as the world's biggest pot producer looks to expand in the U.S. cannabis market.
• Barrick third-quarter gold output rises nearly 5% sequentially
Barrick Gold reported a nearly 5% rise in third-quarter gold production from the previous three months, helped by improved performance at its Veladero mine in Argentina.
• Thomson Reuters launches $100 million venture capital fund
Thomson Reuters is launching a $100 million venture capital fund to invest in early stage companies that serve professional audiences in the legal, tax and accounting, and news media business.
• Shopify enlists Microsoft, Oracle for business tools on app
Shopify is teaming up with top cloud companies including Microsoft and Oracle to help merchants streamline their business operations.
BEFORE THE BELL
Futures for Canada’s main stock index rose as oil prices gained on bigger-than-expected draw in U.S. fuel inventories. U.S. stock index futures advanced, with investors keeping a close eye on earnings updates and a fresh reading on inflation and jobless claims data. European stocks rose on expectations of a strong earnings season. Record high factory gate inflation data pushed China stocks lower. A weak U.S. dollar supported gold prices.
STOCKS TO WATCH
Deal of the Day
• Canopy Growth Corp: The Canadian company said it would buy weed gummies maker Wana Brands for $297.5 million, as the world's biggest pot producer looks to expand in the U.S. cannabis market. Wana sells gummies in the U.S. state of Colorado and licenses its intellectual property to partners who manufacture, distribute and sell Wana-branded gummies in states including California, Arizona, Illinois, Michigan and Florida. The acquisition will provide Canopy access to Wana's vertically integrated facility in Colorado and its licensing division, the company said, adding that it would continue operating independently in the state until the deal closes. The transaction is structured as three separate option agreements allowing Canopy Growth a call option to acquire 100% of the membership interests in each Wana entity, the company said in its statement.
In Other News
• Barrick Gold Corp: The miner reported a nearly 5% rise in third-quarter gold production from the previous three months, helped by improved performance at its Veladero mine in Argentina. Total preliminary gold production rose to 1.09 million ounces in the three months ended Sept. 30, from 1.04 million ounces in the previous quarter. Analysts on average had expected output of 1.144 million ounces. Barrick said production of the yellow metal at the Veladero mine rose to 48,000 ounces in the third quarter from 31,000 ounces in the prior quarter. The Canadian miner, which hopes to restart the Porgera gold mine in Papua New Guinea this year after resolving a standoff with the government, said it remains on track to achieve its 2021 output forecast. The miner's copper production rose 4.16% sequentially to 100 million pounds.
• Shopify Inc: The Canadian e-commerce platform is teaming up with top cloud companies including Microsoft and Oracle to help merchants streamline their business operations. Business owners on the platform can now access Enterprise Resource Planning (ERP) tools including Microsoft Dynamics 365 Business Central, Oracle NetSuite and Infor on the Shopify app. Earlier, they had to rely on third-party applications to connect to Shopify their ERP tools ranging from financial trackers to inventory management systems. The partnerships will help Shopify double down on its fast-growing merchant businesses and let Microsoft and Oracle strengthen their hold on a cloud market dominated by Amazon.com Inc's AWS platform.
• Thomson Reuters Corp: The company is launching a $100 million venture capital fund to invest in early stage companies that serve professional audiences in the legal, tax and accounting, and news media business. The fund, named "Thomson Reuters Ventures," is part of Chief Executive Steve Hasker's plan to transform the provider of news and information to professionals into what it calls a "content-driven technology business." The fund will focus on companies in their Series A and Series B investment rounds. Thomson Reuters wants to identify companies than can help its customers "deliver more value" to their customers - whether that be machine learning for better prediction, or automating for better efficiency, said Pat Wilburn, Chief Strategy Officer at Thomson Reuters. Wilburn will serve as executive director of the fund.
Price pinch: global economy caught in perfect storm
From beef bowls in Tokyo to chicken fillet rolls in London, consumers are beginning to feel the pinch from the surge in costs washing over the global economy.
• Aritzia Inc: Canaccord Genuity raises target price to C$50 from C$43, following the release of better-than-expected second-quarter results.
ECONOMIC EVENTS (All timings in U.S. Eastern Time)
0830 (approx.) Manufacturing sales mm for Aug: Expected 0.5%; Prior 1.5%
COMPANIES REPORTING RESULTS
October 14 & 15:
No major companies are scheduled to report.
CORPORATE EVENTS (All timings in U.S. Eastern Time)
0830 Firan Technology Group Corp: Q3 earnings conference call
1100 Minsud Resources Corp: Annual Shareholders Meeting
1100 Valens Company Inc: Q3 earnings conference call
1300 Pan Global Resources Inc: Annual Shareholders Meeting
1300 Salazar Resources Ltd: Annual Shareholders Meeting
1600 Nano One Materials Corp: Annual Shareholders Meeting
1700 Avant Brands Inc: Q3 earnings conference call
1700 Gold Basin Resources Corp: Annual Shareholders Meeting
Diversified Royalty Corp: Amount C$0.01
Empire Company Ltd: Amount C$0.15
Imperial Equities Inc: Amount C$0.01
Paramount Resources Ltd: Amount C$0.02
Premium Income Corp: Amount C$0.20
Shaw Communications Inc: Amount C$0.09
TransAlta Renewables Inc: Amount C$0.07
Waterloo Brewing Ltd: Amount C$0.02
(All analysts' estimates are according to I/B/E/S Refinitiv data.)