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TOP NEWS
• Canadian Natural Resources beats profit estimates, boosts dividend
Canadian Natural Resources beat analysts' estimates for fourth-quarter
profit, as crude prices staged a steady recovery during the period from
pandemic-driven lows, also helping boost its dividend.
• Investors
look to Fed for next steps as Twist speculation ramps up
After a searing U.S. bond selloff, markets are laser-focused on Federal
Reserve Chair Jerome Powell's next move. But while investors will be
closely watching the Fed chief, due to speak Thursday at a Wall Street
Journal conference, for any hints of concern
about last week's jump in bond yields, they see a high bar for the U.S.
central bank to actually take action.
• U.S. Senate expected to begin debating coronavirus package on Thursday
The U.S. Senate is expected to begin debating President Joe Biden's $1.9
trillion coronavirus relief package on Thursday after agreeing to phase
out payments to higher-income Americans in a compromise with moderate
Democratic senators.
• OPEC+ debates whether to raise or freeze oil output as price recovers
OPEC, Russia and other oil producers meet to decide whether to keep
April output steady or increase it as they weigh a recent price rally
against uncertainty about the economic recovery.
• UK starts probe on Apple over alleged App Store monopoly
Britain's competition regulator said it has opened an investigation into
Apple after complaints that the iPhone maker's terms and conditions for
app developers are unfair and anti-competitive.
BEFORE THE BELL
Futures for Canada's main stock index edged up on upbeat earnings from Canadian Natural Resources and higher crude prices. U.S.
stock index futures dropped, tracking global equities, over worries that lofty bond yields would spark inflationary trends, while the market awaited comments from Federal
Reserve Chair Jerome Powell due later in the day. The dollar index advanced and spot gold prices edged up.
STOCKS TO WATCH
Results
• Canadian Natural Resources Ltd:
The oil and gas producer beat analysts' estimates for fourth-quarter
profit, as crude prices staged a steady recovery during the period from
pandemic-driven
lows, also helping boost its dividend. On an adjusted basis, the
Calgary, Alberta-based company posted a profit of C$176 million or 15
Canadian cents per share, in the quarter ended Dec. 31, compared with
C$135 million or 11 Canadian cents, in the third quarter.
Excluding one-items, the company earned 15 Canadian cents per share,
beating analysts' average estimate of 13 Canadian cents, according to
Refinitiv data. The company also hiked its quarterly dividend to 47
Canadian cents per share payable on April 5, compared
with the 42.5 Canadian cents dividend it paid on Jan 5.
In Other news
• Bombardier Inc:
The corporate planemaker said it is betting on demand for aftermarket
services to help hit an estimated $7.5 billion revenue target in 2025,
as the company holds its first
investor day since becoming a pure play business jet maker. Bombardier
said in a statement it expects to generate more than $500 million in
free cash and $1.5 billion in adjusted earnings before interest, taxes,
depreciation, and amortization (EBITDA) in 2025,
while growing margins and slashing debt. The company is trying to cut
costs and increase earnings by capturing a greater share of sales of
aircraft products and maintenance packages, at a time when plane
deliveries could take years to recover to 2019 levels
due to the coronavirus pandemic.
• Green Thumb Industries Inc:
The company said it would make and distribute Gwyneth Paltrow-backed
THC- and CBD-infused sparkling water Cann in the United States, banking
on the brand's early
success in California and rising demand for cannabis drinks. Green
Thumb, among the largest U.S. cannabis companies by market value, said
on Wednesday it would begin distributing Cann in Illinois this spring
and later expand to additional markets, including
New Jersey, which recently legalized recreational marijuana. "It's the
easiest kind of way to see new users enter the space ... much easier for
me to share a drink with my mother than to share a joint," Ben Kovler,
Green Thumb's chief executive officer told
Reuters. Green Thumb may launch its own cannabis beverage brand in the
future, Kovler told Reuters, adding that it was not in the works right
now.
FOCUS
Global
semiconductor shortage spurs run on vintage chipmaking tools
Minnesota-based Polar Semiconductor makes chips for automakers and is
booked beyond capacity. But expanding production lines to help solve a
chip shortage that is shutting down car factories around the world is
not feasible - in part due to the scarcity of
older-style chipmaking machinery.
ANALYSTS' RECOMMENDATION
• Laurentian Bank of Canada:
Credit Suisse raises target price to C$36 from C$30, citing the
company’s better-than-expected first-quarter results and higher EPS
estimates for 2021.
• Paramount Resources Ltd:
CIBC raises target price to C$11.5 from C$9, stating the company’s
higher sales volume guidance and its focus on reducing debt.
• Sleep Country Canada Holdings Inc:
RBC raises target price to C$29 from C$24, following the company’s
higher-than-expected sales and gross margin in its fourth quarter.
ECONOMIC EVENTS (All timings in U.S. Eastern Time)
0830 (approx.) Labor productivity rate for Q4: Prior -10.3%
COMPANIES REPORTING RESULTS
March 4:
Algonquin Power & Utilities Corp: Expected Q4 earnings of 22 cents per share
Denison Mines Corp: Expected Q4 loss of 1 Canadian cent per share
Imax Corp: Expected Q4 loss of 20 cents per share
Labrador Iron Ore Royalty Corp: Expected Q4 earnings of C$1.16 per share
Martinrea International Inc: Expected Q4 earnings of 52 Canadian cents per share
NFI Group Inc: Expected Q4 earnings of 15 cents per share
Parkland Corp: Expected Q4 earnings of 41 Canadian cents per share
Recipe Unlimited Corp: Expected Q4 earnings of 24 Canadian cents per share
Tricon Residential Inc: Expected Q4 earnings of 14 cents per share
Winpak Ltd: Expected Q4 earnings of 39 cents per share
March 5:
No major companies are scheduled to report for the day.
CORPORATE EVENTS (All timings in U.S. Eastern Time)
0800 NFI Group Inc: Q4 earnings conference call
0830 Kinaxis Inc: Q4 earnings conference call
0830 MEG Energy Corp: Q4 earnings conference call
1000 Tricon Residential Inc: Q4 earnings conference call
1100 Canadian Natural Resources Ltd: Q4 earnings conference call
1100 Peyto Exploration & Development Corp: Q4 earnings conference call
1130 Parex Resources Inc: Q4 earnings conference call
1730 Martinrea International Inc: Q4 earnings conference call
EX-DIVIDENDS
Computer Modelling Group Ltd: Amount C$0.05
Thomson Reuters Corp: Amount $0.40
(All analysts' estimates are according to I/B/E/S Refinitiv data.)
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