TOP NEWS
• Halliburton profit rises as higher oil prices spark drilling demand
Halliburton posted a rise in profit for the third quarter, wrapping up an upbeat earnings season from the world's top oilfield services providers on strong demand fueled by higher oil prices.
• World is in its 'first truly global energy crisis' - IEA's Birol
Tightening markets for liquefied natural gas (LNG) worldwide and major oil producers cutting supply have put the world in the middle of "the first truly global energy crisis", the head of the International Energy Agency (IEA) said.
• GM posts higher profit, reaffirms outlook, but margin slips
General Motors reported a higher quarterly profit, and reaffirmed its full-year outlook. he automaker reported net income of $3.3 billion, compared with $2.4 billion a year earlier. Revenue jumped to $41.9 billion, from $26.8 billion a year ago.
• GE cuts annual forecast, posts 19% drop in adjusted profit
General Electric reported a 19% drop in adjusted quarterly profit and cut its annual earnings forecast, as it struggles with supply snarls, inflationary pressures and weakness in its renewable energy business.
• Valero kicks off U.S. refiners earnings season with surging quarterly profit
efiner Valero Energy reported a bumper third-quarter profit, boosted by higher demand for fuel and refined products.
BEFORE THE BELL
Futures tracking Canada's main stock index fell as lower oil and metal prices weighed on commodity-linked shares, with the markets awaiting Bank of Canada's interest rate decision later in the week. U.S stock futures were mixed after a two-day bounce on Wall Street as investors looked ahead to another round of earnings reports, especially from megacap companies, that could put a recent market rally to test. European stocks steadied, after a slew of better-than-expected earnings reports helped offset worries about fast rising interest rates and a slowing euro zone economy. Japan’s Nikkei rose, as electric motor maker Nidec kickstarted the earnings season with strong results. Gold fell as the U.S dollar regained some ground, but bullion's losses were capped by expectations that the U.S. central bank may hit pause on its rapid rate hike trajectory.
STOCKS TO WATCH
• Cronos Group Inc: The U.S. Securities and Exchange Commission has charged the Canadian cannabis company and its former chief commercial officer with accounting fraud, the regulator said on Monday. Cronos and the former executive, William Hilson, offered to settle the matter, without admitting or denying the SEC's findings, by agreeing to cease and desist from future violations of the charged provisions, the SEC said. The SEC said it decided against a financial penalty for the company given "its timely self-reporting, significant cooperation, and remediation."
ANALYSIS
Decade of central bank largesse haunts taxpayers as losses loom
For more than a decade since the global financial crisis, central bankers pumped trillions of dollars of cheap money into the financial system to keep the economy afloat. Now that largesse is coming back to haunt them - and taxpayers.
ANALYSTS' RECOMMENDATION
• Acadian Timber Corp: Credit Suisse cuts target price to C$17 from C$18 after lowering their 2022 and 2023 EPS estimates for the company to reflect interest rates and market volatility, ahead of the company’s third-quarter results.
• Air Canada: National Bank of Canada cuts target price to C$29 from C$30, previewing the company’s third-quarter results, saying that the company will face some near-term headwinds from high fuel costs and a weak Canadian dollar.
• Bombardier Inc: National Bank of Canada raises target price to C$59 from C$53, making some modest revisions to their 2025 forecast for the company ahead of its third-quarter results and expecting the company to meet its target for 120 deliveries for the full year.
• Equinox Gold Corp: RBC cuts to underperform from sector perform, saying that they view potential for a funding gap for the company, given elevated costs across the portfolio amidst large-scale construction at Greenstone.
• NFI Group Inc: ATB Capital Markets cuts target price to C$18 from C$21, to reflect lowered full-year guidance as supply chain issues continue to weigh on production rates, with inflationary pressure representing an additional headwind for the company.
COMPANIES REPORTING RESULTS
October 25:
Canadian National Railway Co: Expected Q3 earnings of C$2.01 per share
First National Financial Corp: Expected Q3 earnings of 69 Canadian cents per share
First Quantum Minerals Ltd: Expected Q3 earnings of 16 cents per share
Lundin Mining Corp: Expected Q3 earnings of 11 cents per share
October 26:
Agnico Eagle Mines Ltd: Expected Q3 earnings of 43 cents per share
Alamos Gold Inc: Expected Q3 earnings of 7 cents per share
Canadian Pacific Railway Ltd: Expected Q3 earnings of C$1.01 per share
Crescent Point Energy Corp: Expected Q3 earnings of 50 Canadian cents per share
FirstService Corp: Expected Q3 earnings of $1.20 per share
Methanex Corp: Expected Q3 earnings of 66 cents per share
TMX Group Ltd: Expected Q3 earnings of C$1.72 per share
West Fraser Timber Co Ltd: Expected Q3 earnings of $2.19 per share
CORPORATE EVENTS (All timings in U.S. Eastern Time)
0800 Celestica Inc: Q3 earnings conference call
0830 PrairieSky Royalty Ltd: Q3 earnings conference call
1630 Canadian National Railway Co: Q3 earnings conference call
EX-DIVIDENDS
Royal Bank of Canada: Amount C$1.28
(All analysts' estimates are according to I/B/E/S Refinitiv data)
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