Here are five things you need to know this morning
Tariff fallout continues: Yesterday was a tumultuous day for Canada, financial markets and the global economy… and we can expect more of the same today. Stock markets fell, with the S&P 500 wiping out all of its gain since the election of U.S. President Donald Trump. The S&P/TSX Composite fared even worse and is now in negative territory for the year. Prime Minister Justin Trudeau re-stated Canada’s opposition to the U.S. tariff plans, while detailing steps to alleviate the pain. Amid the gloom, there are signs the trade war may turn out to be short-lived. Trump devoted relatively little time to tariffs in his speech to Congress last night. Meanwhile, U.S. Commerce Secretary Howard Lutnick says the Trump administration will likely make an announcement this afternoon that could include some tariff relief for Canada and Mexico – particularly for the auto sector. Stock market futures are rising on those hopes.
Toronto home sales slump: Home sales in Canada’s largest real estate market have fallen to the lowest level in a year, as affordability challenges and economic uncertainty weigh on buyers. Transactions in February dropped 29 per cent from the month before, according to seasonally adjusted data released by the Toronto Regional Real Estate Board. The benchmark price for a home in the city fell for a third month, slipping 1.5 per cent to $1.06 million. The national trend is less clear… yesterday we learned that home sales in Vancouver rose 17.7 per cent from January to February, with selling prices declining slightly.
Outlook for Canada’s energy sector: BNN Bloomberg will focus on the outlook for Canada’s energy sector today, particularly in light of the U.S. tariffs. We will have several key interviews, including influential oil and gas investor Eric Nuttal, and a conversation with Eric Greager, the CEO of Baytex Energy. Baytex has a unique perspective on continental trade issues, as nearly half of its production comes from operations in Texas.
Linamar’s perspective: Canadian investors will be interested in what executives at one of the country’s big auto parts makers have to say later today. Linamar – the Guelph, Ontario-based auto parts company – is due to report financial results after markets close today. Experts believe the auto sector could be particularly hard hit by U.S. tariffs, and Linamar’s share price has slumped to its lowest level in more than two-and-a-half years.
Stocks to watch: There are some noteworthy stocks moving in the premarket. Shares of CrowdStrike are under pressure. The U.S. security-software company reported revenue and profit in its latest quarter that topped estimates, but analysts are focusing on its worse-than-expected earnings outlook. Some analysts are also noting CrowdStrike’s weak margin forecasts as a concern. Foot Locker warned that it expects promotional pressures will weigh on its margins in the year ahead. The retailer improved its profit in the all-important holiday quarter by more than 100 per cent compared with the prior quarter, but it doesn’t expect that to continue. And Abercrombie & Fitch issued weaker-than-expected guidance for its current quarter and fiscal 2025, saying it expects sales will grow more slowly than Wall Street anticipated.