Today’s top headlines

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Top headlines: Saskatchewan introduces bill on withholding carbon tax on natural gas Back to video

• Don’t count on seniors to sell their homes anytime soon, CMHC report finds
• One winner, one loser as the CRA continues its pandemic benefit crackdown
• 5 reasons investors throw common sense out the window
• Real estate investing can diversify your portfolio, but it comes with warnings
• Tech giant Amazon’s first Canadian wind farm project to be located in Alberta

5:01 p.m.

Here are Thursday’s top 3 stocks on the TSX

Fortuna Silver Mines Inc. ($4.86, 5.42 per cent)
Shares of Fortuna have continued to rise ever since the Vancouver-based miner reported sales Nov. 8 that beat earnings estimates, although the company also said it expected gold production for the year to miss guidance. Analysts have one buy, three holds and no sells on the stock and a 12-month price target of $5.84, according to Bloomberg.

Oceanagold Corp. ($2.35, 5.38 per cent)
Shares of the Melbourne-Australia-based miner jumped after United States jobless claims data indicated weakness in the labour market causing the price of bullion to spike on expectations that the U.S. Federal Reserve is done hiking interest rates. Analysts have nine buys, no holds and no sells on the stock and a 12-month price target of $4.08, according to Bloomberg.

Torex Gold Resources Inc. ($13.29, 5.31 per cent)
The Toronto-based gold miner reported earnings Nov. 15 that missed revenue estimates, though the company said it expects the fourth quarter to be its “strongest quarter of production.” Analysts have three buys, four holds and no sells on the stock and a 12-month price target of $23.79, according to Bloomberg.

Gigi Suhanic, Financial Post

4:37 p.m.

Market close: TSX posts small loss as U.S. stocks mixed

Canada’s main index lost just a handful of points, weighed down by weakness in energy and base metal stocks, while U.S. markets were mixed.

The S&P/TSX composite index closed down 4.82 points at 20,053.07.

In New York, the Dow Jones industrial average was down 45.74 points at 34,945.47. The S&P 500 index was up 5.36 points at 4,508.24, while the Nasdaq composite was up 9.84 points at 14,113.67.

The Canadian dollar traded for 72.68 cents U.S., according to XE.com, compared with 73.13 cents U.S. on Wednesday.

The January crude oil contract was down US$3.70 at US$73.09 per barrel and the December natural gas contract was down 13 cents at US$3.06 per mmBTU.

The December gold contract was up US$23.00 at US$1,987.30 an ounce and the December copper contract was down two cents at US$3.70 a pound.

The Canadian Press

4:24 p.m.

Federal Court quashes cabinet order underlying single-use plastics ban

The Federal Court has quashed a cabinet order that listed plastic manufactured items as toxic under the Canadian Environmental Protection Act.

The court says in a decision released today that it was not reasonable to say all plastic manufactured items are harmful because the category is too broad.

The decision has implications for the government’s ban of six single-use plastic items, including straws, grocery bags and takeout containers.

The government is only able to regulate substances for environmental protection if they are listed as toxic under the act.

The regulations banning those items are already being phased in, with a ban on manufacturing and importing six different categories already in place, and a full ban on their sale and export planned by the end of 2025.

The case was brought by the Responsible Plastic Use Coalition and several chemical companies that manufacture plastics.

The Canadian Press

3:12 p.m.

FlightHub CEO sees early warnings signs of softening travel demand

The chief executive of online travel agency FlightHub says demand for air travel may be levelling off after soaring to pre-pandemic levels over the summer.

Christopher Cave says airline ticket sales dropped from September to October, when they typically rise ahead of the holiday season.

Cave says consumer anxiety over travel costs and the broader economy account for the softer sales, as higher interest rates and inflation weigh on Canadians’ budgets.

Data from the Airlines Reporting Corp. shows sales at U.S. travel agencies last month fell below levels from September as well as a year earlier.

However, Air Canada CEO Michael Rousseau said last month that demand remains stable, with advance ticket sales in its third quarter up by 55 per cent year-over-year.

TD Cowen analyst Helane Becker says bookings are up for Thanksgiving, Christmas and New Year’s but worse than expected for off-peak periods as travel plans adapt to strained purse strings.

The Canadian Press

1:02 p.m.

Caisse investing $200 million in Swedish EV battery company Northvolt

Quebec’s pension fund manager is investing $200 million in Swedish company Northvolt AB which announced plans in September to build a factory for electric vehicle batteries near Montreal.

The investment by the Caisse de depot et placement du Quebec will be in the form of convertible debt in the company.

Construction of Northvolt’s $7-billion plant in McMasterville and Saint-Basile-le-Grand, Que., is expected to start by the end of this year.

It is expected to have 30 gigawatt hours of annual cell manufacturing capacity when the first phase goes into production in 2026 with the ability to later double that figure.

The site will also include facilities for cathode active material production and battery recycling.

Kim Thomassin, executive vice-president and head of Quebec at CDPQ, says the battery industry is a sector of high interest for the fund as it believes it will experience strong growth over the next decade.
The Canadian Press

12:44 p.m.

Saskatchewan introduces bill on withholding carbon tax on natural gas

The Saskatchewan government has introduced legislation that it says would enable it to stop collecting the federal carbon tax on natural gas bills while providing legal protection for those at its energy Crown corporation.

The Saskatchewan Party government announced last month that SaskEnergy would stop collecting the carbon tax on natural gas on Jan. 1 in response to Ottawa’s decision to pause the tax on home heating oil.

The federal move largely helps those in Atlantic provinces, where it’s a main source for home heating, and Saskatchewan and other provinces have said it’s unfair natural gas hasn’t been treated similarly.

The bill introduced in the Saskatchewan legislature today would designate SaskEnergy as the sole registered distributor of natural gas in the province.

It says it would protect the Crown corporation, all of its current and former directors, officers, employees and other associates from legal consequences of not remitting the tax.

The Saskatchewan government says removing the tax from SaskEnergy bills, effective New Year’s Day, would save the average family in the province $400 next year.

The Canadian Press

12:33 p.m.

Midday markets: TSX down in late-morning trading, U.S. stocks also lower

Canada’s main stock index was down in late-morning trading, as losses in the base metal and energy stocks helped lead the way lower and U.S. stock markets also fell.

The S&P/TSX composite index was down 74.82 points at 19,983.07.

In New York, the Dow Jones industrial average was down 141.40 points at 34,849.81. The S&P 500 index was down 12.03 points at 4,490.85, while the Nasdaq composite was down 50.28 points at 14,053.56.

The Canadian dollar traded for 72.73 cents U.S. compared with 73.13 cents U.S. on Wednesday.

The January crude oil contract was down US$3.08 at US$73.71 per barrel and the December natural gas contract was down 11 cents at US$3.08 per mmBTU.

The December gold contract was up US$25.50 at US$1,989.80 an ounce and the December copper contract was down two cents at US$3.70 a pound.

The Canadian Press

12:07 p.m.

Workers at 17 Loblaw discount grocery stores in Ontario could strike next week

Almost 1,300 workers at 17 No Frills grocery stores in Ontario could be on strike next week, as the union that represents them has set a strike deadline of 12:01 a.m. on Monday.

“Loblaw must come to the table prepared to raise wages and improve working conditions for these grocery store workers,” said Unifor national president Lana Payne in a news release Thursday.

The union said contract talks are ongoing, but that workers are prepared to strike to back their demands.

No Frills is the discount grocery banner owned by Loblaw Cos. Ltd., the largest grocery company in Canada. The 17 stores include five locations in Toronto, as well as locations in Whitby, Etobicoke, Niagara Falls and elsewhere.

According to Unifor, six per cent of the workers across the stores are full-time. The rest are part-time, with a quarter being students.

The average hourly wage for the full-time workers is $19.89, while the average hourly wage for the part-time workers excluding the students is $16.95, according to Unifor. The average hourly wage for the students is $15.92.

In Ontario, the minimum wage for students under the age of 18 who work less than a certain number of hours per week is $15.60, compared with the general minimum wage of $16.55.

On Wednesday, Loblaw reported a third-quarter profit of $621 million, up from $556 million during the same quarter last year. The grocer has been expanding its footprint of discount stores like No Frills as consumers trade down, looking for deals amid the rising cost of living.

“Our Maxi and No Frills stores led the way, generating double-digit growth again this quarter,” said chairman Galen Weston on a conference call with analysts Wednesday.

The Canadian Press

10:13 a.m.

Markets open: Wall Street mixed, TSX slightly down

United States Treasuries climbed after data underscored a gradual economic cooling, which reinforces speculation the Federal Reserve will end its aggressive hiking campaign amid the latest disinflation trend.

Two-year yields fell eight basis points to around 4.85 per cent. The S&P 500 wavered after a torrid rally. Traders continued to sift through earnings from big-box retailers. Walmart Inc. slumped after striking a worrisome tone on the outlook for U.S. consumers, while Macy’s Inc. climbed on profit that beat expectations. Cisco Systems Inc. sank more than 10 per cent on a bearish forecast.

Continuing applications for U.S. unemployment benefits rose to the highest level in almost two years, underscoring the increasing challenges unemployed workers are facing in finding new jobs. Factory production fell in October by more than expected, largely reflecting a strike-related pullback in activity at U.S. automakers and parts suppliers.

“It continues to be a good week for the Fed,” said Chris Larkin at E*Trade from Morgan Stanley. “It’s still too early for the Fed to declare victory on inflation — and rate cuts are still far off — but more data like this will tamp down lingering concerns about an additional hike. The question now is whether this type of ‘Fed-friendly data’ will continue to provide bullish momentum for the stock market.”

On Wall Street, the S&P 500 was up 0.15 per cent 4,510.18. The Dow Jones Industrial Average fell 0.23 per cent to 34,913.43 while the Nasdaq composite was down 0.11 per cent 14,089.65.

In Toronto, the S&P/TSX composite index was down 0.04 per cent at 20,050.19

Bloomberg, Financial Post

8:57 a.m.

CMHC says annual pace of housing starts in October up 1% from September

Canada Mortgage and Housing Corp. says the annual pace of housing starts for October ticked up from September.

The national housing agency says the seasonally adjusted annual rate of housing starts in October came in at 274,681, up one per cent from 270,669 in September.

The increase came as the pace of urban housing starts rose two per cent to 257,357 units, with multi-unit urban starts up one per cent at 209,887 and single-detached urban starts up nine per cent at 47,470.

CMHC says the annual pace of housing starts in Montreal fell 43 cent and Toronto saw a 24 per cent decline, while the pace of starts in Vancouver rose 35 per cent, boosted by a 40 per cent increase in multi-unit starts.

The annual pace of rural starts for October was estimated at 17,324.

The six-month moving average of the monthly seasonally adjusted annual rate of housing starts in October was 256,280, up one per cent from 253,957 in September.

The Canadian Press

7:30 a.m.

Amazon invests in first Canadian wind farm

Tech giant Amazon.com Inc is investing in its first Canadian wind farm.

The company said it will partner with developer Copenhagen Infrastructure Partners on a 495-megawatt capacity wind farm to be built in Vulcan County in southern Alberta.

Amazon has other renewable energy projects in Canada, including a solar farm in Alberta, which is Canada’s largest.

This energy will help power Amazon’s local operations in Alberta, including its fulfilment centers, sortation centers, delivery stations and Amazon Web Services data center.

The company is one of a growing number of large corporations that are seeking to achieve their own environmental commitments by purchasing long-term renewable electricity contracts known as power purchase agreements.

The Alberta electricity market in particular has seen a significant increase in corporate power purchase agreements in recent years — a trend that has contributed to the rapid growth of the renewable energy sector in the province.

Amazon has committed to powering its operations with 100 per cent renewable energy by 2030, and says it is on track to reach that goal ahead of schedule.

The Canadian Press

Tech giant Amazon’s first Canadian wind farm project to be located in Alberta

Stock markets before the opening bell

Global stocks paused their rally today, as the euphoria over a potential dovish pivot by central banks faded and earnings from a slew of companies undershot expectations.

Europe’s Stoxx 600 index slid 0.2 per cent and U.S. equity futures ticked lower.

Ten-year Treasuries steadied near 4.5 per cent after yields increased by almost nine basis points in the previous session. The dollar was little changed and West Texas Intermediate declined toward US$76 a barrel.

Bloomberg

What to watch today

Canadian housing starts come out today, offering a look at how homebuilding is progressing as the country struggles with affordability.

Investors will watching Walmart Inc earnings today after Target Corp beat expectations Wednesday.

Also on tap are U.S. initial jobless claims, U.S. trade price indices, industrial production and capacity utilization and the Philadelphia Fed Index

Need a refresher on yesterday’s top headlines? Get caught up here.

Additional reporting by The Canadian Press, Associated Press and Bloomberg