By Adriano Marchese
Canadian indexes were slightly lower mid-trading on Friday, coming down from earlier highs in the morning.
Canada released its GDP data, showing that the economy grew at its fastest pace in a year in the early months of 2024, at a rate of 1.7%, but still missed expectations. The quarter was marked by strong household spending, and analysts think this leaves the door open for the central bank to begin cutting rates as early as next week.
Sector performance was split at midday, with health tech, communications and utilities leading the gainers. This was offset by losses primarily in tech, materials and producer manufacturing stocks.
Canada's S&P/TSX Composite Index slipped by 0.3%, to 22015.30, and the blue-chip S&P/TSX 60 fell by 0.2%, to 1317.34.
Shares of BRP were down by 3.7%, to 87.35 Canadian dollars (US$63.85), after reporting a loss in the first fiscal quarter as fewer shipments and higher promotional activity weighed on profitability and revenue. The company expects this trend to continue during the fiscal year.
Other market movers:
Canadian Western Bank shares fell 4.9%, to C$25.15, after the company reported adjusted earnings and revenue missed expectations for the second fiscal quarter, and cited having two fewer interest-earning days as well as seasonally higher non-interest expenses.
Laurentian Bank of Canada shares were 5.7% down, to C$25.14, after the bank incurred impairment and restructuring charges in its second quarter that led to a loss and lower revenue that came in below expectations.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
05-31-24 1225ET
