TSX ends win streak as Shopify posts record decline

TSX ends win streak as Shopify posts record decline/Reuters

Reuters | May 9, 2024 | 05:52 AM IST | Breaking News | Follow on Google News

TSX ends win streak as Shopify posts record decline

TSX ends win streak as Shopify posts record decline

May 8 (Reuters) – Canada’s main stock index fell on Wednesday as Shopify’s downbeat forecast for revenue growth hammered technology shares and investors took stock of recent gains for the market that had taken it within striking distance of a record high.

The Toronto Stock Exchange’s S&P/TSX composite index (.GSPTSE), opens new tab ended down 31.46 points, or 0.1%, at 22,259.16. It had closed higher in the previous five sessions on rising optimism that the Federal Reserve’s next move would be to cut interest rates.

“It is just some rebalancing after the move higher over the last few days,” said Elvis Picardo, portfolio manager at Luft Financial, iA Private Wealth.

“Big picture, you are seeing individual stocks very much impacted by their earnings numbers. The bar’s been set fairly high so for companies to beat you need to not just provide good numbers, you also have to give a rosy outlook.”

The information technology sector (.SPTTTK), opens new tab dropped 4.2%, pulled down by an 18.5% decline in the shares of Shopify Inc (SHOP.TO), opens new tab after the e-commerce company forecast its slowest quarterly revenue growth in two years.

Most other sectors ended higher, with heavily-weighted financials (.SPTTFS), opens new tab rising 0.9% and energy (.SPTTEN), opens new tab adding 0.5%. The price of oil settled up 0.8% at $78.99 a barrel after U.S. oil storage data showed a larger-than-expected draw in crude stockpiles.

Stella-Jones Inc (SJ.TO), opens new tab was one of the top performers. Its shares climbed 10.9% after the forestry firm reported first-quarter results that beat analysts’ estimates.

(Except for the headline, this story has not been edited by VoM News staff and is published from syndicated feed)

Reuters