Markets step back, Netflix disappoints
After Chinese markets sold off overnight, Toronto and New York gave back some recent gains. Investors in the Chinese market took profits from the recent rally, fuelled by China’s recovery, but also because of fears of China-U.S. tensions. On Thursday, the S&P shed 0.34% while the Nasdaq lost 0.73 with the Dow falling in between. The TSX fared the best, slipping only -0.24%.
Earnings season continues to grip Wall Street which Morgan Stanley reporting record revenues (the stock jumped 2.51%), but Bank of America falling 2.72% after its Q2 profit plunged by half.It’s been a mixed bag for U.S. banks, so investors waited for Netflix to report after Thursday’s bell and their numbers disappointed. Revenues and subscriptions matched or beat, but EPS missed. Netflix plunged 12% in after-hours trading.
Telcos and industrials led the TSX while energy lagged, even though a barrel of WCS rose over 1% (and WTI slipped by that much). OPEC has announced that it will ease cuts and allow more oil production in response to economies reopening. Big gainers in Toronto included Savaria, which jumped 9.22% as investors were pleased with its preview of Q2 results. Likewise, Intertape Polymer popped over 5% after issuing its own earnings preview. In contrast, Air Canada plunged nearly 4% as it urges Ottawa to ease some restrictions among some international flights.