TOP NEWS • Investors see no Fed pivot, brace for hawkish Powell message in Jackson Hole Investors are bracing for the Federal Reserve to double down on its commitment to crushing inflation, and expect its chair Jerome Powell at the annual central bank gathering in Wyoming this week to deliver an aggressive tightening message and dash hopes for a rate cut next year.
• Twitter misled U.S. regulators on hackers, spam, whistleblower says Twitter misled federal regulators about its defenses against hackers and spam accounts, the social media company's former security chief Peiter Zatko said in a whistleblower complaint.
• Tesla to urge dismissal of California agency's race bias lawsuit Tesla’s lawyers will urge a California judge to throw out a lawsuit by the state's civil rights agency accusing the electric car maker of widespread race discrimination at an assembly plant.
• Energy bonanza drives shareholder payouts to new record Energy companies reaping record profits from soaring oil and gas prices have helped global dividend payments to shareholders soar above pre-pandemic levels and to a record quarterly high, data showed.
• Nordstrom lowers annual forecast as inflation hits demand Nordstrom cut its annual revenue and profit forecasts, a sign that decades-high inflation was squeezing consumer spending on its high-end clothing and footwear.
BEFORE THE BELL Futures for Canada’s main stock index were in the red as investors digested disappointing bank earnings. U.S. stock futures fell, in line with global equities, as weaker economic data from across the world hurt investor sentiment, with focus set on the Jackson Hole Symposium beginning Thursday for cues on pace of interest rate hikes. The U.S. dollar strengthened further, while gold prices fell, and the euro was under pressure on recession fears. Oil prices edged higher, amid talks about OPEC+ cutting output.
POLL Toronto market seen higher in 2022, 2023 despite selloff fears Canada's main stock index is expected to advance through the end of the year and then approach a record peak in 2023 as high commodity prices bolster resource company earnings and despite the risk of another major sell-off, a Reuters poll found.
ANALYSTS' RECOMMENDATION • MDA Ltd: Canaccord Genuity cuts target price to C$12 from C$15, after the company reported weaker-than-expected second-quarter results and reduced revenue guidance for 2022.
• Bank of Nova Scotia: KBW cuts rating to market perform from outperform, citing cloudier outlook for international banking.
ECONOMIC EVENTS No economic indicators are scheduled for release.
COMPANIES REPORTING RESULTS August 24: National Bank of Canada: Expected Q3 earnings of C$2.34 per share Royal Bank of Canada: Expected Q3 earnings of C$2.66 per share
August 25: Canadian Imperial Bank of Commerce: Expected Q3 earnings of C$1.83 per share Toronto-Dominion Bank: Expected Q3 earnings of C$2.04 per share
CORPORATE EVENTS (All timings in U.S. Eastern Time) 0800 Royal Bank of Canada: Q3 earnings conference call 1300 National Bank of Canada: Q3 earnings conference call
EX-DIVIDENDS Centerra Gold Inc: Amount C$0.07 Gildan Activewear Inc: Amount $0.16 Pembina Pipeline Corp: Amount C$0.21
(All analysts' estimates are according to I/B/E/S Refinitiv data.)
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