FX.co ★ TSX Snaps 5-day Winning Streak, Ends Moderately Lower

After five consecutive days of increases, the Canadian stock market hit a slump on Wednesday as industrial and communication sector stocks witnessed notable drops. Technology and financial sectors followed suit with minor declines.

Many investors eagerly parsed the Canadian retail sales data and numerous corporate earnings updates, all the while anxiously anticipating crucial U.S. personal income and spending data. The primary S&P/TSX Composite Index, falling to 21,796.88 roughly an hour after noon, eventually closed with a 138.00 point loss or 0.63% at 21,873.72.

Canadian Pacific Kansas City (CP.TO) took a significant hit, dipping 6.3% following the release of its first-quarter net profit report, which revealed a decrease from $800 million the prior year to $774 million. Similarly, Canadian National Railway (CNR.TO) experienced a 4.8% plunge. Its first-quarter report showed a net income of $1,103 million, a drop from last year's $1,220 million.

Companies like TFI International (TFII.TO), Cogeco Inc (CGO.TO), Bombardier Inc (BBD.A.TO) and Cogeco Communications (CCA.TO) slipped between 3.3 to 4.4%. Rogers Communications (RCI.B.TO) also fell by 3.3%. It's first-quarter net income report showed a drop from $511 million the previous year to $256 million. Despite an adjusted net income of $540 million from $553 million a year ago, the shares dipped over 3%.

Major firms such as Royal Bank of Canada (RY.TO), Shopify Inc (SHOP.TO), Molson Coors Canada Inc (TPX.B.TO) and Boyd Group Services (BYD.TO) similarly closed at a notable deficit.

However, it wasn't all bleak. Winpak (WPK.TO) saw a surge of over 7%, while Softchoice Corporation (SFTC.TO) rose by 4.4%. Companies including Seabridge Gold (SEA.TO), Newmont Corporation (NGT.TO), Dollarama Inc (DOL.TO), Agnico Eagle Mines (AEM.TO), Dayforce (DAY.TO) and Loblaw Companies (L.TO) saw gains ranging from 1.3 to 4%.

First Quantum Minerals (FM.TO) increased by 2.7% after reporting a lower net loss for the first quarter. According to the report, the company's net loss for the first quarter of 2024 was $159 million, compared to a net loss of $259 million during the same quarter the previous year.

Preliminary data suggests retail sales in Canada likely remained unchanged from February to March of 2024. In February, retail sales dropped by 0.1% from the previous month, and an annual basis, retail activity had increased by 1.2% in February, following a 0.9% increase in January.

However, Canada's manufacturing sales were likely to have decreased by 2.8% from February to March 2024, a shift from the 0.7% increase seen in the previous month, based on preliminary estimates.