TOP NEWS • Apple worsens selloff in beleaguered growth stocks Apple shares fell 4% in premarket trading and piled pressure on other growth stocks following a report that the tech giant was dropping its plans to boost production of the latest model of its flagship iPhone.
• Bank of England to start unlimited bond purchases to stabilize market The Bank of England said that it would buy as many long-dated government bonds as needed between now and Oct. 14 to stabilize financial markets, and added that it would postpone next week's start of its gilt sale program.
• BlackBerry takes a knock as cybersecurity revenue drop clouds automotive demand BlackBerry on Tuesday reported a fall in cybersecurity revenue for the second quarter, as customers reined in spending due to an uncertain macroeconomic environment.
• Cineplex approaches Cineworld lenders over merger with Regal unit - WSJ Canadian cinema chain operator Cineplex has reached out to the lenders of Cineworld to revive a potential merger with the bankrupt rival's Regal Entertainment, the Wall Street Journal reported, citing people familiar with the matter.
• Pot producer Canopy to divest Canadian retail operations in profit hunt Canopy Growth said on Tuesday it would divest its retail business across Canada, as the pot producer doubles down on its efforts to turn profitable.
BEFORE THE BELL Canada’s main stock index futures fell, tracking sour global sentiment, as investors were spooked by recession worries. U.S. stock index futures pared losses as the benchmark U.S. Treasury yield pulled back from 12-year highs. European shares recovered some earlier losses after the Bank of England said that it would buy as many long-dated government bonds as needed between now and Oct. 14 to stabilize financial markets. Japan's Nikkei ended at a near three-month low and China’s main stock benchmark tumbled to five-month lows. In currency markets, nervous financial markets propelled the safe-haven U.S. dollar, while China's onshore yuan ended the domestic session at its lowest level against the U.S. dollar since the global financial crisis of 2008. Meanwhile, oil prices rose, gaining support from U.S. production cuts caused by Hurricane Ian and gold prices were little changed.
STOCKS TO WATCH
Results • BlackBerry Ltd: The company on Tuesday reported a fall in cybersecurity revenue for the second quarter, as customers reined in spending due to an uncertain macroeconomic environment, sending its shares down in extended trading. The company has also been facing tough competition from Microsoft, Citrix Systems and International Business Machines in the security software segment, with revenue in the unit falling 7.5% to $111 million from a year ago. The company said in an earnings call that cybersecurity segment revenue in the third quarter is expected to be flat year-on-year. However, revenue at the company's Internet of things (IoT) unit, which includes the QNX software for automotive customers, rose about 28% to $51 million as it signed up more customers. Total revenue fell 4% to $168 million for the quarter ended Aug. 31, compared with a consensus estimate of $166.7 million. Excluding items, the company posted a loss of 5 cents per share, narrower than analysts' expectations of loss of 7 cents.
In Other News • Canopy Growth Corp: The company said it would divest its retail business across Canada, as the pot producer doubles down on its efforts to turn profitable. The business includes stores operating under the Tweed and Tokyo Smoke retail banners, and follows recent efforts to become profitable by reining in costs through layoffs, exits from some international markets and store closures. Licensee partner OEG Retail Cannabis will buy 23 Tokyo Smoke and Tweed stores across Manitoba, Saskatchewan, and Newfoundland and Labrador, while cannabis retailer 420 Investments Ltd will purchase five corporate stores in Alberta, the company said. Canopy said all in-store staff working in the locations being acquired will be employed by the buyers pending completion of the transactions. Earlier this year, the company extended its time frame to achieve profitability as fewer-than-expected retail stores and cheaper black market rates crimp sales at legal recreational companies.
• Cineplex Inc: The Canadian cinema chain operator has reached out to the lenders of Cineworld to revive a potential merger with the bankrupt rival's Regal Entertainment, the Wall Street Journal reported, citing people familiar with the matter. Cineworld declined to comment on the WSJ report, while Cineplex did not immediately respond to a Reuters request for confirmation. The two companies are locked in a multi-million dollar legal battle over a scrapped merger from two years ago.
PREVIEW U.S. oil refinery run-rates could top 90% for 3rd quarter in a row U.S. oil refinery utilization rates, a measure of how operators view future fuel demand, could top 90% next quarter for the third consecutive period, industry analysts projected, reflecting scant stocks and strong demand for diesel.
ANALYSTS' RECOMMENDATION • Marathon Gold Corp: CIBC cuts target price to C$1.75 from C$2.3, following the closing of the company’s $150 million bought deal financing.
• Tamarack Valley Energy Ltd: CIBC cuts target price to C$6 from C$6.5, citing the acquisition of Deltastream providing a more compelling investment case for the company given the strong free cash flow potential of the assets.
• Teck Resources Ltd: Jefferies initiates coverage with buy rating and C$60 target price, saying the company should benefit from strength in met coal in the near/medium term even if the global economy continues to weaken.
ECONOMIC EVENTS No economic indicators are scheduled for release.
COMPANIES REPORTING RESULTS September 28: AGF Management Ltd: Expected Q3 earnings of 26 Canadian cents per share H2O Innovation Inc: Expected Q4 earnings of 1 Canadian cent per share
September 29: No major companies are scheduled to report for the day.
CORPORATE EVENTS (All timings in U.S. Eastern Time) 1000 H2O Innovation Inc: Q4 earnings conference call 1100 AGF Management Ltd: Q3 earnings conference call 1700 Bengal Energy Ltd: Shareholders Meeting
EX-DIVIDENDS Abc Technologies Holdings Inc: Amount C$0.03 Acadian Timber Corp: Amount C$0.29 Adf Group Inc: Amount C$0.01 Ag Growth International Inc: Amount C$0.15 Airboss of America Corp: Amount C$0.10 Algonquin Power & Utilities Corp: Amount $0.18 Altus Group Ltd: Amount C$0.15 Andlauer Healthcare Group Inc: Amount C$0.07 Andrew Peller Ltd: Amount C$0.06 ARC Resources Ltd: Amount C$0.12 Badger Infrastructure Solutions Ltd: Amount C$0.16 Bird Construction Inc: Amount C$0.03 Black Diamond Group Ltd: Amount C$0.01 Boyd Group Services Inc: Amount C$0.14 Bridgemarq Real Estate Services Inc: Amount C$0.11 BRP Inc: Amount C$0.16 Canacol Energy Ltd: Amount C$0.05 Canadian Banc Corp: Amount C$0.16 Canadian Pacific Railway Ltd: Amount C$0.19 Capital Power Corp: Amount C$0.58 Cardinal Energy Ltd (Alberta): Amount C$0.05 CES Energy Solutions Corp: Amount C$0.01 Chesswood Group Ltd: Amount C$0.04 CI Financial Corp: Amount C$0.18 Dexterra Group Inc: Amount C$0.08 Dividend Select 15 Corp: Amount C$0.06 Doman Building Materials Group Ltd: Amount C$0.14 Dundee Precious Metals Inc: Amount $0.04 E-L Financial Corp Ltd: Amount C$2.50 Element Fleet Management Corp: Amount C$0.07 Exchange Income Corp: Amount C$0.21 Extendicare Inc: Amount C$0.04 First National Financial Corp: Amount C$0.19 FirstService Corp: Amount $0.20 Freehold Royalties Ltd: Amount C$0.09 Gamehost Inc: Amount C$0.03 Gibson Energy Inc: Amount C$0.37 goeasy Ltd: Amount C$0.91 IGM Financial Inc: Amount C$0.56 Information Services Corp: Amount C$0.23 Innergex Renewable Energy Inc: Amount C$0.18 K-Bro Linen Inc: Amount C$0.10 Labrador Iron Ore Royalty Corp: Amount C$1.00 Martinrea International Inc: Amount C$0.05 Medical Facilities Corp: Amount C$0.08 Mullen Group Ltd: Amount C$0.06 NFI Group Inc: Amount C$0.05 North West Company Inc: Amount C$0.38 Northland Power Inc: Amount C$0.10 Nutrien Ltd: Amount $0.48 Osisko Gold Royalties Ltd: Amount C$0.05 Park Lawn Corp: Amount C$0.11 Peyto Exploration & Development Corp: Amount C$0.05 PHX Energy Services Corp: Amount C$0.10 Pizza Pizza Royalty Corp: Amount C$0.06 Pollard Banknote Ltd: Amount C$0.04 Power Corporation of Canada: Amount C$0.49 PrairieSky Royalty Ltd: Amount C$0.12 Premium Brands Holdings Corp: Amount C$0.70 Rogers Sugar Inc: Amount C$0.09 Savaria Corp: Amount C$0.04 Sienna Senior Living Inc: Amount C$0.07 Softchoice Corp (CA): Amount C$0.09 Spin Master Corp: Amount C$0.06 Stantec Inc: Amount C$0.18 Superior Plus Corp: Amount C$0.06 Surge Energy Inc: Amount C$0.03 Tamarack Valley Energy Ltd: Amount C$0.01 TC Energy Corp: Amount C$0.90 TerraVest Industries Inc: Amount C$0.10 TFI International Inc: Amount $0.27 Tidewater Midstream and Infrastructure Ltd: Amount C$0.01 Timbercreek Financial Corp: Amount C$0.05 Titan Mining Corp: Amount C$0.01 Total Energy Services Inc: Amount C$0.06 Transcontinental Inc: Amount C$0.48 Tree Island Steel Ltd: Amount C$0.03 Tricon Residential Inc: Amount $0.05 Vermilion Energy Inc: Amount C$0.08 Whitecap Resources Inc: Amount C$0.03 WSP Global Inc: Amount C$0.37 Yamana Gold Inc: Amount $0.03
(All analysts' estimates are according to I/B/E/S Refinitiv data)
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