The Canadian market is experiencing a significant dip this Wednesday morning, influenced by underwhelming performance reports from major companies, including Shopify Inc. Uncertainty around the Federal Reserve's interest rate forecasts also seems to be prompting a more cautious stance among investors.
Earlier in the trading session, the S&P/TSX Composite Index fell to 20,048.94. Around 30 minutes before midday, it had declined further by 119.07 points or 0.52% to 22,171.55.
Shopify Inc shared a worrying report of a net loss of $273 million for the quarter ending March 2024, as opposed to a net gain of US$68 million during the equivalent period last year. Consequently, Shopify’s stocks have dropped by approximately 20%.
Another company on a downward trajectory is NexGen Energy. After announcing a binding term sheet agreement with MMCap International Inc. to purchase 2,702,410 pounds of natural uranium concentrate for US$250 million, NexGen Energy’s shares tumbled nearly 10%.
Several other companies recorded declines of 2-3%, including Aritzia Inc, which slipped 4.7%, and others such as Bausch Health Companies, Capstone Mining, Cameco Corporation, Spin Master Corp, Bombardier Inc, Teck Resources, Lundin Mining, First Quantum Minerals, NuVista Energy and Lightspeed Commerce.
Conversely, Stella-Jones Inc saw an impressive surge of nearly 9% after announcing their net earnings for the first quarter of 2024 stood at $77 million, or $1.36 per share, a 32% rise from the same period in 2023.
Nuvei Corporation reported an adjusted net income for the first quarter of $62.5 million, a slight 3% reduction from $64.5 million the previous year. Nuvei’s stocks have been marginally affected.
B2Gold Corp announced a net income of $48.5 million in the first quarter of 2024, considerably less than the previous year’s first-quarter results of $102 million but the company's stocks are up 2.5%.
Goeasy Ltd. reported a net income of $58.9 million for the first quarter, a 15% increase from $51.4 million in the first quarter of 2023, even though its share price has fallen by 1.65%.
Finally, Suncor Energy announced a modest increase in revenues, with adjusted operating earnings for the first quarter of 2024 reaching $1,817 million, up marginally from $1,809 million recorded in the same period last year. Suncor’s stocks are currently trading 1.5% higher.