Markets flat, Canopy sinks and Cineplex pops
Markets were flat Thursday as geopolitics took a breather and the earnings parade continued. The TSX closed slightly in the green, lifted by bond proxies like utilities. Among the day’s winners was Walmart, which spiked to a record high at the opening bell. Its Q3 numbers were strong, highlighted by a 41% rise in U.S. online sales and rising same-store sales.
However, the share price faded throughout the day as analysts uncovered weaknesses in the report, including Sam’s Club which continues to underperform, and the high cost of new initiatives. Walmart actually closed in the red 0.27%. In Toronto, Savaria, which installs home elevators for the elderly, popped nearly 5% on rising earnings and adjusted EBITDA. Similarly, Cineplex jumped 5.28% after revenue and profit topped the street’s expectations.
The same joy can’t be said for Kraft. Goldman Sachs threw cold water on its current rally (up 15% since Hallowe’en) by downgrading it from hold to sell. Kraft ended Thursday down 5.90%. Meanwhile, Canopy was hammered over 14% in trading, after issuing a report that some described as “ugly.” For example, Canopy lost $26.9 million on cannabis oil that retailers returned and customers didn’t want. Its overall losses were deeper than the street had expected.