Canadian Stocks Decline Amid Tariff Fears and Earnings Reports

Canadian markets weakened due to looming U.S. tariffs. Stocks like TFI International saw considerable declines in net income, impacting investor sentiment. Overall market sentiment is cautious in light of corporate earnings fluctuations.

Date: 21-02-2025

AI Rating: 4

Market Response to Tariffs
Canadian stocks faced pressure from the threat of new tariffs being introduced by the Trump administration, particularly on lumber and forest products. Such measures are likely to have a significant negative impact on Canadian exports and the overall economy, making investors wary.

Earnings Reports and Net Income
TFI International reported a substantial drop in net income, decreasing from $131.4 million to $88.1 million year-over-year. This decline represents a significant earnings hit, indicating potential weaknesses in operational performance and market conditions.

Cenovus Energy also reported a decline in quarterly net earnings, dropping from $743 million to $146 million, reflecting an immense downturn for the company. Such sharp drops in net income could lead to reduced investor confidence and a sell-off in the stock.

Loblaw Companies reported net earnings of $462 million, down from a previous $541 million, marking a 14.6% decrease compared to the prior year.
Overall, these results suggest a general trend of declining profitability among several key players, which can lead to negative reactions in the stock market as investors re-evaluate their positions.

Stock Movements
During the trading session, several stocks saw significant losses, particularly those in technology, consumer staples, and industrials. Conversely, companies in healthcare and materials sectors, such as Innergex Renewable Energy and Bausch Health Companies, experienced notable gains, indicating sector rotation by investors in response to earnings data.

Stocks: TFII CVE L BHC