The last Canadian banks to report delivered harsh news on Thursday. TD, a Bay Street darling, announced an EPS miss of $1.59 vs. the $1.73 the street expected, and its adjusted profit was down compared to this time last year. TD shares fell 3.5%. Even worse, CIBC reported an EPS of $2.84, falling short of the predicted $3.07, and paid a $135 million impairment charge from selling a Barbadian bank.
CIBC stock plunged 5.18%. Similarly, Canadian Western Bank dropped 6.88% on bad earnings. Since Nov. 26, when the banks started reporting, the sector has slid 4% compared to 1.3% for the overall TSX. Banks and oil weighed down the TSX which ended in the red.
Trading was more positive in New York where the indices closed slightly higher after dipping for most of the day. The trigger was the House of Representatives announcing they would formally impeach Trump for asking Ukraine to dig up dirt on Democratic Presidential candidate Joe Biden. Market reaction has been mild towards the impeachment hearers, with many expecting the Senate to eventually pardon Trump. Big movers included Nike, up 2.21%, Activision Blizzard 2.06% and Biogen 3.41%. However, retailer Bed, Bath and Beyond fell 2.5%.