A survey of North American equities heading in both directions
On the rise
Shares of Canadian National Railway Co. (CNR-T) rose after it saw a rise in both profits and uncertainty in its latest quarter as the country’s biggest railroad operator worked through a trade war set off by U.S. President Donald Trump.
Despite the tariff turmoil, the company stood by its financial forecast for the year even as other companies have lowered their targets in recent days, including rival Canadian Pacific Kansas City Ltd. (CP-T).
Reaction to CN's results on the Street: Friday's analyst upgrades and downgrades
“We’ve not seen a significant impact to our volumes thus far, but there’s no question that uncertainty has increased over the last few months, and we’re seeing a heightened risk of recession in both Canada and the U.S.,” chief executive Tracy Robinson told analysts on a conference call.
“It’s difficult to say what will happen from here. While we remain optimistic that the U.S. will ultimately reach trade agreements with Canada, China and other countries, we don’t know what those deals will look like, nor when they will happen.”
Despite a slowdown in February caused by frigid weather and snow, CN boosted year-over-year revenues for grain and fertilizers as well as petroleum and chemicals — two of its biggest segments.
Cargo volumes as measured in revenue ton miles — a key metric gauging how many tons of freight are hauled in a mile — increased one per cent year-over-year.
However, revenue from container shipments, auto loads, forest products and metals and minerals fell, partly reflecting the hit from tariffs and broader uncertainty around trade policies.
“The tariffs are starting to bite and we’re seeing that in the intermodal business,” Lalonde said. “We’re going to see a bit of an air pocket here looking out through the end of the year.”
CN reported that net income climbed five per cent to $1.16-billion in the first quarter from $1.10-billion the year before.
Revenues increased four per cent to $4.40-billion in the three months ended March 31 from $4.25-billion in the same period a year earlier, the Montreal-based company stated.
Diluted earnings per share jumped nearly eight per cent to $1.85 from $1.72.
In a release Thursday, CN said its financial forecast for 2025 remains unchanged, but stressed the “heightened recessionary risk related to tariffs and trade actions” taken by the U.S. and other countries.
Canadian oil producer Imperial Oil (IMO-T) posted a rise in first-quarter profit on Friday, driven primarily by stronger margins in its refining and fuel sales business, sending its U.S.-listed shares up.
Canadian producers have benefited from the completion of the Trans Mountain pipeline expansion project, which raised its capacity to 890,000 barrels per day. The pipeline offers producers the only export route to international markets bypassing the United States.
“The upstream business continued to benefit from improved egress and narrower heavy oil differentials, while our downstream profitability continued to reflect the structural advantages of the Canadian market,” CEO Brad Corson said.
Imperial’s results come amid a broader rebound in North American refining margins, as product demand remains resilient and supply remains tight due to global disruptions.
Canada sends about 90 per cent of its oil exports to the United States, mostly shipped via pipelines from the western province of Alberta to land-locked refiners in the U.S. Midwest.
The future of this interdependence was thrown into turmoil after Mr. Trump announced tariffs on the country’s neighbor in the north, a promise he briefly made good in February before rowing back most of the levies within a few days.
Imperial Oil — majority owned by U.S. oil and gas major Exxon Mobil — reported petroleum product sales of 455,000 barrels per day during the first quarter, compared with 450,000 bpd a year ago.
The Calgary-based company said synthetic crude oil average realization rose to $98.79 per barrel, from $93.51 per barrel a year earlier.
It, however, reported a fall in its upstream production, total throughput volumes and refinery utilization rate.
Imperial’s net income rose to $1.29-billion, or $2.52 per share, during the quarter ended March 31, from $1.2-billion, or $2.23 per share, a year earlier.
Aritzia Inc. (ATZ-T) soared after saying it is shifting some of its supply chain away from China, which has been hammered with triple-digit tariffs from the United States.
The Vancouver-based apparel company said Thursday that the Asian nation is one of the top three countries it relies on to make its clothing, but it intends to cut its China production from 25 to 20 per cent for its upcoming fall-winter season.
Analyst reaction to Aritzia results
Its reliance on China will fall even further by next spring, when Aritzia predicts just a “mid-single-digit percentage” of production will happen there, chief executive Jennifer Wong said.
“We are taking the word diversification right down to the very epitome of what diversification means,” she told analysts on a call.
As part of that diversification, she said the business will turn to long-standing partners in the 12 other countries, like Vietnam and Cambodia, where Aritzia produces clothing. It will also explore new countries and broker relationships with new suppliers that can improve its existing products.
Despite the swings Aritzia has faced, it doesn’t appear to be pulling back from the United States.
It has plans for boutique openings this year in five new markets including Cincinnati; Pittsburgh; Raleigh, N.C.; Salt Lake City; and Scottsdale, Ariz.
U.S. customers elsewhere appear to already be loving the brand. Its U.S. net revenue increased in its most recent quarter by more than 48 per cent from last year, reaching $548 million.
Aritzia’s overall net revenue rose by more than 31 per cent in that fourth quarter to $895.1-million, with its retail revenue spiking by 24 per cent and its e-commerce revenue climbing by 42 per cent.
Those numbers in addition to lower markdowns and warehousing costs helped its net income in the period ended March 2 soar to $99.6-million, more than four times higher than the $24.2 million it made a year earlier.
On an adjusted basis, the company reported a net income of $98-million, compared with $38.2-million a year ago.
That amounted to adjusted earnings of 83 cents per diluted share compared with 34 cents the year before.
Amazon.com (AMZN-Q) turned higher after it reported first-quarter cloud revenue growth and forecast operating income below estimates, disappointing investors.
Amazon Web Services, the company’s cloud unit, recorded a 16.9-per-cent increase in quarterly revenue, to US$29.27-billion, missing expectations of 17.4-per-cent growth and US$30.9-billion in sales.
Rival Microsoft (MSFT-Q), by comparison, reported on Wednesday it had exceeded estimates for its Azure cloud unit. AWS revenue grew at its slowest pace in five quarters.
“It’s always felt like AWS and Google Cloud were taking the most share for quite some time, but maybe that’s starting to turn because Microsoft posted great numbers,” said Dave Wagner, portfolio manager at Aptus Capital Advisors. He said expectations for Amazon were higher after Microsoft’s strong performance.
After Microsoft’s results, investors raised expectations for AWS and it failed to meet them, said Gil Luria, analyst at D.A. Davidson.
High tariffs imposed by U.S. President Donald Trump on goods imported from China have cast uncertainty on retailers such as Amazon. Some sellers, for instance, have said they plan to sit out the company’s heavily-promoted Prime Day sales event in July, Reuters reported.
The Seattle company said operating income for the current quarter would be between US$13-billion and US$17.5-billion, compared with the average estimate of US$17.7-billion, according to LSEG data.
On a call with analysts, CEO Andy Jassy sought to ease jitters about the tariffs, which are expected to boost retail prices in the coming months.
“We haven’t seen any attenuation of demand yet,” Mr. Jassy said. “We’ve seen some heightened buying in certain categories that may indicate stocking up in advance of any potential tariff impact.”
He added: “We also have not seen the average selling price of retail items appreciably go up yet,” noting that sales of lower-cost essentials were rising steadily.
Amazon’s forecast for second-quarter sales was above estimates, however, a reassuring sign to investors that the e-commerce company would navigate uncertainty related to tariffs.
Amazon reported total revenue of US$155.7-billion for the first quarter ended March 31, compared with analysts’ estimate of US$155.04-billion, according to data compiled by LSEG.
The company expects net sales between US$159-billion and US$164-billion for the second quarter, compared with analysts’ average estimate of US$160.91-billion, according to data compiled by LSEG.
Exxon Mobil (XOM-N) on Friday beat Wall Street’s estimate for first-quarter profit as higher oil and gas production from Guyana and the Permian basin helped boost earnings.
The largest U.S. oil producer paid US$4.3-billion in dividends and repurchased US$4.8-billion in shares during the quarter. The buyback figure puts Exxon on track to meet its annual share repurchase goal of US$20-billion.
“In this uncertain market, our shareholders can be confident in knowing that we’re built for this,” Exxon CEO Darren Woods said in a statement.
Shares of Exxon, which have fallen 9 per cent over the past year, were flat in Friday trading.
The energy sector has faced a tumultuous start to the year after U.S. President Donald Trump’s global tariff announcements stoked recession fears. Those concerns triggered a slump in oil prices because a weaker economy needs less energy to fuel it. At the same time, the OPEC+ group of oil producers has been increasing output, leading to more crude supply and further pressuring prices.
Exxon reported a profit for the January-March quarter of US$7.71-billion or US$1.76 per share, beating analyst estimates of US$1.73 per share, according to data compiled by LSEG.
“(Exxon) appears to have reiterated guidance on the shareholder returns front, which should be expected given the company’s strong balance sheet,” said Biraj Borkhataria, an analyst at RBC Capital Markets, in a research note.
Global oil and gas production totaled 4.55 million barrels of oil equivalent per day (boepd) during the quarter, up from 3.78 million boepd in the same period last year.
Exxon is the largest producer in the Permian basin, the top U.S. oilfield, and operates the lucrative Stabroek block off the coast of Guyana. Cost of supply in the Permian is less than US$35 per barrel, the company has previously said, allowing it to make money even at lower oil prices.
Chevron (CVX-N) on Friday reported first-quarter earnings that met Wall Street estimates, but said it would spend less on share repurchases in the current quarter, reflecting the shaky economic outlook faced by Big Oil.
The company’s share repurchases this year could be between US$11.5-billion and US$13-billion, said Chevron Chief Financial Officer Eimear Bonner, which would be in the lower end of the company’s guidance of US$10-billion to US$20-billion.
Shares of Chevron rose on Friday.
It said it paid US$3-billion in dividends and repurchased US$3.9-billion in shares during the quarter.
In the second quarter, the company said it expects to repurchase between US$2-billion and US$3.5-billion in shares. If rolled forward, that would mean Chevron could land between US$11.5-billion and US$13-billion in repurchases for 2025, Ms. Bonner said in an interview.
“We’re still buying back a significant amount of our shares annually, on top of a dividend that’s growing faster than our peers,” she said.
The second-largest U.S. oil producer posted adjusted earnings of US$3.8-billion during the three months ended March 31, or US$2.18 per share, matching analyst estimates, according to LSEG data.
Chevron’s global oil production totaled 3.35 million barrels of oil equivalent per day (boepd), flat from the same period last year. Earnings from oil and gas production were US$3.76-billion, down from US$5.24-billion in the year-ago quarter.
Vacation rental platform Airbnb (ABNB-Q) on Thursday forecast second-quarter revenue largely below Wall Street estimates and signaled softening demand in the U.S. as an erratic trade policy hammers consumer sentiment and sparks worries over growth.
Shares of the company turned positive after a steep premarket drop and are set to erase a portion of the year-to-date decline of about 7 per cent.
The company expects second-quarter revenue between US$2.99-billion and US$3.05-billion, the midpoint of which is below analysts’ estimates of US$3.04-billion, according to data compiled by LSEG.
Over the last two months, Delta Airlines warned travel demand has “largely stalled”, while hotel operator Hilton indicated travelers were in a “wait-and see” mode, as President Donald Trump’s on-again off-again tariffs take a toll.
Airbnb Chief Financial Officer Ellie Mertz said on an earnings call that guests were booking trips closer to the check-in date, indicating that the booking window was growing shorter.
Booking window refers to the number of days between the reservation date and actual arrival and a shorter booking window points towards increased consumer uncertainty and caution in travel spending.
Nights and experiences booked during the first quarter rose 8 per cent to 143.1 million on a global basis. Excluding North America, bookings were up 11 per centfrom a year earlier.
On the decline
Aurora, Ont.-based auto parts supplier Magna International (MG-T) fell after it said on Friday that it plans to implement cost-saving measures to cushion the hit from Mr. Trump’s sweeping tariffs.
The cost-cutting plans come after the company missed first-quarter profit estimates due to a 3-per-cent decline in global vehicle production, with Magna especially impacted by Tata Motors’ Jaguar halting production of I-Pace and E-Pace.
Mr. Trump’s wavering tariff policies could further roil Magna’s financials, as they have forced U.S. auto companies to rethink part sourcing and production output.
“We are actively advancing several initiatives, including operational excellence, restructuring, commercial recoveries, and reduced capital and engineering spending to mitigate the impact of tariffs,” said Magna CEO Swamy Kotagiri.
Further details on the cost cuts could be the key focus for investors on the company’s conference call with analysts later in the day.
On an adjusted basis, Magna earned 78 US cents per share for the quarter through March, compared with analysts’ estimates of 90 US cents per share according to data compiled by LSEG.
Overall quarterly sales fell about 8.2 per cent to US$10.0-billion from a year earlier but outperformed estimates of US$9.7-billion.
Its peer Aptiv (APTV-N), however, forecast its second-quarter profit above analysts’ estimates on Thursday, betting on benefits from its previously employed cost-saving measures.
Apple (AAPL-Q) shares fell on Friday after the iPhone maker trimmed its share buyback program and CEO Tim Cook warned of additional tariff-related costs of about US$900-million this quarter amid a raging Sino-U.S. trade war.
The Cupertino, California-based company that makes over 90 per cent of its products in China said it plans to shift production of iPhones to India to minimize the impact of President Donald Trump’s trade war.
“It looks like Apple is progressing faster than expected with its move to shift production of US phones into the region (India),” said Matt Britzman, senior equity analyst at Hargreaves Lansdown.
Analysts at Wedbush echoed this view, referring to India as Apple’s “life raft supply chain” as the company navigates through tariff turbulence. Cook outlined how Apple has started to build up a stockpile of products so that the majority of its devices sold in the U.S. this quarter will not come from China.
“Tim Cook did his best to reassure investors on last night’s earnings call, but many likely came away still wanting more clarity about what lies beyond June,” Mr. Britzman said, adding that the US$900-million hit to profit turned out to be smaller than many had feared.
Apple, which has been grappling with increased competition in key market China from rivals like Huawei due to slower rollouts of AI features, was already in troubled waters before the tariffs hit.
“The question for investors is what can replace China for Apple? This is not an easy question to answer and could threaten the long-term trajectory of Apple’s growth plan,” said Kathleen Brooks, research director at XTB.
Apple shares lost about 15 per cent so far this year. That compares with a 2.3-per-cent fall in Meta (META-Q), and a nearly 1-per-cent rise in Microsoft (MSFT-Q).
Apple’s 12-month forward price-to-earnings ratio is 27.63, compared with Microsoft’s 28.64 and Meta’s 21.48.
Take-Two Interactive (TTWO-Q) on Friday pushed the release of Grand Theft Auto VI to May 26, 2026, extending the wait for one of the most hotly anticipated titles in video-gaming history and sending its shares tumbling.
The title, developed by Rockstar Games, was previously forecast to launch in the fall of 2025.
It is expected to be an instant hit with billions of dollars in sales each year according to several analysts. The previous entry, Grand Theft Auto V, released in 2013, has sold more than 200 million copies, making it one of the best-selling video games of all time.
With files from staff and wires