Tariff Concerns Weigh on Canadian Market Amid Earnings Reports

The Canadian market suffers amid tariff worries, with many stocks declining. Empire reports a positive net income while Transat A.T. shows net loss. Investor anxiety rises, impacting stock prices.

Date: 13-03-2025

AI Rating: 5

Market Overview: The Canadian market is experiencing a downturn due to growing concerns over new tariffs and potential recession fears affecting the U.S. and Canada. The S&P/TSX Composite Index is down, reflecting a negative sentiment among investors.

Stock Performance: Notable declines, particularly among technology, healthcare, and consumer discretionary stocks, indicate that investor confidence is shaken. For instance, Molson Coors Canada Inc. is down more than 13%, while other firms like Propel Holdings and E-L-Financial Corporation have lost nearly 10% and 8% respectively.

Empire Company Limited: Empire reported third-quarter net earnings of $146.1 million ($0.62 per share), a slight increase from $134.2 million ($0.54 per share) the previous year. This reflects a positive trajectory in net income and earnings per share, which could potentially stabilize its stock price amidst market volatility.

Transat A.T.: In contrast, Transat A.T. has reported an adjusted net loss of $75 million ($1.90 per share), marking a marginal improvement from an adjusted net loss of $76 million ($1.97 per share) a year earlier. This still represents a concerning financial position for the company, likely contributing to its nearly 9% drop.

Building Permits Data: Additional data from Statistics Canada indicates a 3.2% decrease in the total value of building permits, which may also reflect the broader economic concerns impacting market confidence.

Stocks: EML TRZ