Markets today
- The Dow Jones Industrial Average fell 784.67, or 1.61%, to 47,954.74 points, the S&P 500 lost 0.56%, to 6,830.71 points and the Nasdaq Composite closed down 0.26%, to 22,748.99 points.
- The S&P/TSX Composite Index ended down 332.89 points, or 1%, at 33,609.97, posting its lowest closing level since February 19. The materials group dropped 3.9%, as rising U.S. Treasury yields and a firmer U.S. dollar weighed on the price of gold, which settled 1.1% lower. Two of the 10 major sectors ended higher, including energy, which added 0.9%. Financials lost 1% and industrials ended 0.7% lower.
- Financial markets again followed the cue of oil prices. Brent crude settled up $4.01, or 4.93%, at US$85.41 per barrel, a fifth session of gains. U.S. West Texas Intermediate crude settled up $6.35, or 8.51%, to US$81.01, its highest since July 2024. Expansion of the conflict to more countries fed fears of disruption in the Strait of Hormuz, a critical energy choke point, where missile and drone threats have drastically reduced tanker traffic. Fears of inflationary pressures have been rising throughout the week.
03/05/26 17:15
Aecon Group beats on revenue, hikes dividend
- Brenda Bouw
Aecon Group Inc. (ARE-T) shares should be active on Friday after the company beat expectations in the fourth quarter and announced a dividend hike.
After markets closed on Thursday, the North American construction and infrastructure development company reported revenue of $1.54-billion, up from $1.27-billion a year earlier. The results were ahead of expectations of $1.4-billion, according to S&P Capital IQ.
Adjusted EBITDA of $97.3-million was up from $76.3-million a year earlier and ahead of expectations of $78.5-million.
The company also approved an increase to the quarterly dividend of 19.25 cents per share from 19 cents per share.
In its outlook, Aecon expects 2026 revenue to exceed 2025 levels “on the strength of its record backlog, strategic positioning in sectors with attractive demand profiles, robust recurring revenue programs, and a healthy pipeline of project opportunities tied to power generation, critical resource development, mass transit infrastructure, water, and defence,” it stated.
03/05/26 16:35
Costco Wholesale beats quarterly comparable sales estimates
Costco Wholesale (COST-Q) beat Wall Street estimates for second-quarter comparable sales on Thursday, helped by resilient holiday-season demand for affordable essentials as well as “nice-to-have” items at its membership-only stores.
The company’s quarterly same-store sales, excluding gas, rose 6.7%, compared with analysts’ estimates of a 5.88% rise, according to data compiled by LSEG.
Net income for the second-quarter rose nearly 14% to US$2.04 billion.
Shares are down 0.5% so far in post-market trading.
“The stock had high expectations heading into the print given it’s above-average valuation, but the market will likely continue to view the stock as a safe haven due to geopolitical volatility,” said David Wagner, head of equity and portfolio manager at Aptus Capital Advisors.
- Reuters
03/05/26 15:57
Rosenberg sees big buying opportunity in stocks once conflict ends
- Darcy Keith
Economist David Rosenberg has been going through the history books, looking at U.S. stock market returns one year after major military conflicts have ended.
The conclusion: he’s going to turn into a stock market bull when the latest Middle East turmoil ends.
From today’s Breakfast with Dave newsletter:
“I am now planning ahead for what life will look like once this war against Iran ends (because this war will end) and likely sooner, not later, than expected — no navy, no air space control, no airport, no leadership… does any of that sound like the secrets of success for the future of the Iranian regime? It may well remain intact, but it will be defanged and pose less of a terror threat to the world. That is the major objective for those who somehow believe this war has no aims.
So, here is the history lesson of what the U.S. stock market did the year after major military conflicts came to an end:
• World War II (May 8th, 1945): +26%
• Korean War (July 27th, 1953): +27%
• Cuban Missile Crisis (October 28th, 1962): +34%
• Vietnam War (April 30th, 1975): +14%
• Operation Desert Storm (February 28th, 1991): +11%
• End of the Cold War (December 26th, 1991): +9%
• Iraq War II (May 1st, 2003): +21%
Not once was the stock market lower a year out.
The average advance was +20%, and the median showed a +21% gain. So, once the dust settles, look for me to add some U.S. equity exposure to the portfolio."
03/05/26 15:22
U.S. weighs oil futures market action to combat rising energy prices
The U.S. Treasury Department is expected to announce measures as soon as Thursday aimed at combating rising energy prices, including potential action involving the oil futures market, a senior White House official said.
The potential move would mark an unusual attempt by Washington to influence energy prices through financial markets, rather than physical oil supplies, as officials race to blunt the political and economic impact of rising fuel costs.
A Treasury spokesperson could not be immediately reached for comment.
- Reuters
03/05/26 14:57
Morningstar DBRS downplays risks of spreading private credit redemptions
- Darcy Keith
Morningstar DBRS is playing down wider market risks of the recent cracks appearing in the private credit world. And it thinks private credit’s expansion to reach more retail investors has only just begun.
Redemption requests have increased recently at U.S. business development companies that included Blackstone Private Credit Fund, Blackrock’s HPS Corporate Lending Fund, Apollo Debt Solutions, Ares Strategic Income Fund, and Blue Owl Technology Income Corp.
“Concerns with software sector exposure and the potential for AI disintermediation, negative press headlines regarding private credit, the potential for asset level credit deterioration and lower dividends in an easing interest rate environment have dampened investor sentiment, which consists of a large retail investor base. We still expect retail investors to be a significant growth engine for industrywide private credit assets under management,” Morningstar DBRS said.
Michael McTamney, senior vice president, North American Financial Institution Ratings, added: “Of course, these elevated redemption requests present heightened reputational risks to the asset managers, but our concerns are largely mitigated when considering the scale, diversity, and well-established track records of the broader investment platforms.”
“Overall, we see the asset managers as having enough liquidity sources to manage the headline and reputational risks accordingly,” he said.
03/05/26 13:29
Active fund managers had another woeful year - except when it comes to dividends
- Darcy Keith
Active fund managers, once again, didn’t have much to brag about overall last year. S&P Dow Jones Indices published its 2025 SPIVA scorecards this morning and most of Canada’s active funds failed to surpass their respective indices.
Performance of small-cap managers was particularly woeful – with zero funds surpassing the returns of their benchmark indexes. With a gold rally for the ages last year boosting the small-cap indexes, fund managers were left behind.
S&P, of course, loves to point out the failure of fund managers. There’s a lot of money being made in their market indexes, which passive ETFs track.
But here’s how S&P DJI’s head of specialists, index investment strategy, Joe Nelesen, summed up the year in today’s report: “Strong global equity markets set a high hurdle for Canadian active managers to overcome. Bouts of volatility, divergence among sectors, and reduced concentration created opportunities that very few active funds capitalized upon in 2025. Among those that did generate outperformance, their ranks thinned significantly over longer time horizons.”
There’s one interesting exception, though: dividend fund managers overall did make out OK.
Here are some highlights from the report:
- Canadian Equity Funds: The S&P/TSX Composite Index climbed 31.7% in 2025, while Canadian Equity funds gained 22.1% and 22.7% on equal- and asset-weighted bases, respectively. Underperformance rates hit 93.4% over the 1-year period, climbing to 96.3%, 95.9% and 98.8% over the 3-, 5- and 10-year horizons, respectively.
- Canadian Dividend & Income Equity Funds: The S&P/TSX Canadian Dividend Aristocrats Index rose 19.1% during 2025, while Canadian Dividend & Income Equity funds gained 19.5% and 19.2% on equal- and asset-weighted bases, respectively. Underperformance rates hit 44.2% over the 1-year period and reached 93.0%, 85.2% and 96.9% over the 3-, 5- and 10-year horizons, respectively.
- Canadian Small-/Mid-Cap Equity Funds: The S&P/TSX Completion Index gained 42.5% in 2025, and 100.0% of Canadian Small-/Mid-Cap Equity funds underperformed the index. Funds in this category gained 23.6% and 23.3% on equal- and asset-weighted bases, respectively, over the one-year period.
- U.S. Equity Funds: The S&P 500 increased 12.4% in 2025, and 89.1% of U.S. Equity funds underperformed the index. Few funds in the U.S. Equity category outperformed over the long term, with 85.8%, 100.0% and 97.1% underperforming over 3-, 5- and 10-year horizons, respectively.
An overwhelmingly high number of fund managers also underperformed in the international and global categories as well.
In an email to the Globe responding back to the question of why dividend funds made out OK, Mr. Nelesen said: “Often, we find that when a small number of stocks have an outsize impact, funds including or excluding them can make a big difference. Use of non-benchmark stocks could also be a factor. … You can see there is quite a bit of variation in this category. Although less than half of funds underperformed in 2025, the number was nearly 96% in 2024. Longer term underperformance rates suggest whatever is driving underperformance over the short term hasn’t been sustainable.”
03/05/26 13:08
Oracle plans thousands of job cuts as data center costs rise: report
Oracle (ORCL-N) is planning thousands of job cuts as it faces a cash crunch from a massive AI data center expansion effort, Bloomberg News reported on Thursday.
The layoffs will impact divisions across Oracle and may be implemented as soon as this month, the report said, citing people familiar with the matter. Some cuts will be aimed at job categories that the company expects will shrink due to AI.
The planned reductions are expected to be wider-reaching than Oracle’s typical rolling job cuts, according to Bloomberg.
This week, Oracle announced internally that it would be reviewing many of the open job listings in its cloud division, effectively slowing down or freezing the hiring process, the report added.
Oracle declined to comment.
- Reuters
03/05/26 12:44
Markets are starting to brace for possible BoC rate hikes this year
- Darcy Keith
North American bond yields are on the rise for the fourth day in a row today, as the widening war in Iran continues to put upward pressure on oil prices and stoke concern about rising inflation and its impact on central bank policy.
Both the U.S. and Canadian 10-year bond yields are up 6 basis points at midday. In Canada’s case, that’s the highest since Feb 11.
Markets are currently pricing in roughly 40 basis points of cuts from the Federal Reserve this year, down from about 50 basis points before the war began, according to LSEG data.
The change in expectations for Bank of Canada rate policy moves may be even more eye-catching. At the end of last week, markets were pricing in about 40 per cent odds of a Bank of Canada rate cut by this summer. This past Monday, after the weekend launch of U.S. military action against Iran, those odds shrank to about 10 per cent.
Today, markets are pricing in decent odds the Bank of Canada will HIKE rates before this year is done.
Implied interest rate probabilities in overnight index swap markets now show roughly 50 per cent odds of a BoC rate hike by this December, according to Bloomberg data.
The Bank of Canada’s current overnight rate is 2.25 per cent. While the bank only moves the overnight rate in quarter-point increments, markets price in a much less rigid rate when setting bets on future policy rates. Right now, traders are positioned for an overnight rate of 2.27 per cent for the bank’s July rate policy decision and 2.40 per cent in December.
These numbers are always fluid and change by the day. But any hopes for further rate cuts this year have been dashed for the moment.
03/05/26 12:10
Blue Owl draws record short bets as private credit remains under fire
Short sellers have ratcheted up bets against private credit firm Blue Owl Capital (OWL-N), with short interest standing at all-time highs at a time when the private lending industry has been hammered by liquidity and credit quality concerns.
About 14.1 per cent of Blue Owl’s free float shares were shorted, up from nearly 12.5 per cent two-weeks ago, data analytics firm Ortex said.
Shares of the New York-based company were rocked in February after it said it would sell US$1.4-billion of assets from three of its credit funds so it can return capital to investors and pay down debt, and permanently halted redemptions at one of the funds.
Earlier this week, Blackstone’s flagship private credit fund faced a surge in withdrawals in the first quarter, with clients pulling a bigger than usual US$3.7-billion from the US$82-billion fund, known as BCRED.
- Reuters
03/05/26 11:56
Online travel stocks rise after report that OpenAI to scale back direct checkouts
Shares of online travel agencies surged on Thursday after a report that OpenAI is scaling back plans to integrate direct bookings into ChatGPT, easing investor fears that the AI chatbots could eventually cut out travel intermediaries.
Shares of Expedia (EXPE-Q) were up over 12 per cent, while Booking Holdings (BKNG-Q) and Tripadvisor (TRIP-Q) rose 8 per cent and 5 per cent, respectively.
The rally followed a report by The Information that OpenAI found ChatGPT users were researching products in the chatbot but not completing purchases through it.
The AI company will instead focus on checkouts within specific third-party apps that plug into ChatGPT, the report said, citing an OpenAI spokesperson.
Investors and analysts have grown increasingly concerned that generative AI tools could become the dominant platform for planning and booking travel, potentially bypassing intermediaries such as online travel agencies.
- Reuters
03/05/26 11:53
Analysts’ forecast returns, recommendations and yields for all stocks in the S&P/TSX SmallCap Index
- Jennifer Dowty
Last month, the S&P/TSX SmallCap Index outperformed the broader index by a wide margin. The S&P/TSX SmallCap Index advanced 12.5 per cent in February, surpassing the 7.6 per cent price return for the S&P/TSX Composite Index.
Nearly all sectors in the TSX SmallCap Index, nine of the 11 sectors to be exact, posted positive price returns.
The top 10 performers in the TSX SmallCap Index during the month were:
- New Pacific Metals (NUAG-T), up 70 per cent
- Almonty Industries (AII-T), up 63 per cent
- Novagold Resources (NG-T), up 53 per cent
- Firan Technology Group (FTG-T), up 48 per cent
- Neo Performance Materials (NEO-T), up 45 per cent
- PHX Energy Services (PHX-T), up 44 per cent
- Orla Mining (OLA-T), up 44 per cent
- Fortuna Mining (FVI-T), up 40 per cent
- Seabridge Gold (SEA-T), up 40 per cent
- Perpetua Resources (PPTA-T), up 39 per cent
To see stocks that analysts boosted their targets for as well as a table of all the index components, click here.
03/05/26 10:58
U.S. treasury yields rise for fourth straight day as crude prices elevate inflation risk
U.S. Treasury yields rose for a fourth straight day on Thursday, as the widening war in Iran continued to put upward pressure on oil prices and stoked concern about rising inflation and its impact on Federal Reserve policy.
U.S. crude surged 5.5 per cent to US$78.77 a barrel and Brent jumped to US$84.36 per barrel, up 3.64 per cent on the day, as more tankers came under attack in Gulf waters as the U.S.–Iran war escalated, and Iranian drones entered Azerbaijan, threatening to spread the crisis to more oil producers in the region.
Crude prices have surged roughly 16 per cent since the war began last week.
The yield on the benchmark U.S. 10-year Treasury note rose 4.7 basis points to 4.129 per cent after hitting a three-week high of 4.148 per cent.
“The surge in gasoline prices associated with the events in the Middle East are clearly a concern for people who are anticipating a Fed reaction function,” said Michael Green, chief market strategist at Simplify Asset Management in Philadelphia.
“The really critical thing is that fears of inflation are cutting off people’s expectations that the Fed cuts, that’s really what’s powering the curve more than anything else.
Markets are currently pricing in roughly 40 basis points of cuts from the Fed this year, down from about 50 basis points before the war began, according to LSEG data.
- Reuters
03/05/26 10:56
TSX falls as miners slip, investors weigh Middle East crisis
Canada’s main stock index fell on Thursday as retreating gold prices pulled down mining shares, while investors stayed cautious as the Middle East conflict entered its sixth day.
The S&P/TSX Composite Index was down 292.14 points, or 0.86 per cent, at 33,650.72 as of 10:55 a.m. ET.
The index had rebounded on Wednesday after a sharp selloff driven by fears that the U.S.-Israel war against Iran would lead to inflation.
“Markets are always shooting first and asking questions later. The algorithms are designed to pick negative headlines and when you get some of those negative headlines, that’s what you get,” said Allan Small, senior investment advisor at Allan Small Financial Group with iA Private Wealth.
Gold miners slipped more than 3 per cent as spot gold declined 0.7 per cent, giving up gains made early in the day. In the broader materials sector, base metal miners fell 3 per cent as silver and copper prices also dropped.
Miners First Quantum Minerals and Ero Copper slipped more than 5 per cent each.
The heavily weighted financial index fell 0.2 per cent, while the communication services subindex slipped 0.9 per cent. Energy shares, however, were 1 per cent higher as crude oil extended gains, with the Middle East conflict disrupting supplies and prompting some major producers to cut output.
Tech stocks climbed more than 3 per cent led by enterprise software firm Kinaxis, which jumped 7.7 per cent after strong customer expansion helped it beat quarterly revenue estimates.
The healthcare subindex also rose 0.6 per cent. Among other notable movers, oil and gas producer Canadian Natural Resources climbed 3.3 per cent after fourth-quarter profit beat analysts’ expectations.
- Reuters
03/05/26 10:28
Wall Street edges lower as investors weigh Middle East war risks
Wall Street’s main indexes edged lower on Thursday as the Middle East conflict entered its sixth day, raising concerns of fresh inflation pressures that could complicate the Federal Reserve’s monetary policy decisions.
At 9:51 a.m. ET, the Dow Jones Industrial Average fell 390.80 points, or 0.83 per cent, to 48,338.36, the S&P 500 lost 16.75 points, or 0.25 per cent, to 6,852.03 and the Nasdaq Composite lost 0.71 points to 22,806.77.
Helping limit the losses was a strong forecast from Broadcom that projected its artificial intelligence chip revenue would exceed US$100-billion next year, sending shares of the chip designer up 2.9 per cent.
Despite the U.S.-Israeli air war against Iran showing no signs of cooling off, Wall Street’s main indexes have fared better than their European and Asian counterparts this week, aided primarily by a rebound in technology stocks that bore the brunt of February’s selloff.
The tech-led recovery in the prior session helped the Nasdaq recover all weekly losses, putting it on track to close the week in positive territory if those gains hold through Friday.
Still, a prolonged disruption in shipping through the strategic Strait of Hormuz is likely to further fuel inflation pressures through energy and shipping costs, at a time when U.S. tariffs have already complicated the Fed’s monetary policy outlook.
Any signs that crude prices could hit US$100 a barrel would be worrisome for markets and investors were on the lookout for reports that the conflict could be nearing its end.
Policymakers have broadly acknowledged the need to wait and gauge the impact on the economy, although investors are anticipating price pressures to delay a 25-basis-point interest rate cut by the Federal Reserve to September from July, according to LSEG-compiled data.
“For the past couple of years, bringing inflation down has been the Fed’s entire focus, and they were finally making progress. But if energy stays expensive, inflation could start climbing again and that would force the Fed to rethink its plans,” said Adam Sarhan, chief executive of 50 Park Investments.
The CBOE volatility index was up 0.9 points at 22.08, reflecting broader investor caution, while the rate-sensitive Russell 2000 index was down 1 per cent.
- Reuters
03/05/26 09:46
CIBC analyst recommends trimming bank stocks to buy lifecos
- Scott Barlow
CIBC Capital Markets analyst Paul Holden reviewed earnings for the major banks but warned clients about how expensive the stocks have become,
“F2026 is off to a strong start, with all banks reporting FQ1 EPS above consensus estimates, with an average beat of 8 per cent. Key drivers of EPS upside across the group include capital markets, NIM expansion and positive operating leverage. Credit losses, always a key focus for bank investors, were modestly weaker than consensus expectations. Consensus F2027 estimates have moved higher for the group by an average of 2 per cent. CM received the most notable revision of 5 per cent, which is quite substantial … Key themes coming out of FQ1 reporting are: i) ROE is the centre of attention; ii) credit results were good enough, but just barely; iii) NIM tailwinds continue to drive NII upside; iv) capital markets is the gift that keeps giving; and v) efficiency gains and operating leverage are benefiting from a strong revenue environment … The group is now trading at an average of 12.4 times on F2027 CIBCe (average includes consensus estimates for CM).The average P/BV of 2.1 times compares to the ten-year average of 1.6x. The average dividend yield of 3.3 per cent is below the ten-year average of 4.2 per cent. On all metrics the banks are trading rich relative to historical averages … Valuation multiples remain more than 2 standard deviations above the 10-year average. We recommend trimming on strength and adding to lifecos based on the relative spread”
03/05/26 09:35
TSX opens lower as miners fall; investors weigh Middle East crisis
Canada’s main stock index opened lower on Thursday, dragged down by mining shares as gold prices declined, while investors practiced caution amid the ongoing Middle East conflict that entered its sixth day.
At 9:32 a.m. ET, the S&P/TSX composite index was down 1 per cent at 33,627.88 points.
Wall Street’s main indexes were also down as the Middle East conflict entered its sixth day, raising concerns of fresh inflation pressures that could complicate the Federal Reserve’s monetary policy decisions.
The Dow Jones Industrial Average fell 212.7 points, or 0.44 per cent, at the open to 48526.73. The S&P 500 fell 18.4 points, or 0.27 per cent, to 6851.08, while the Nasdaq Composite dropped 100.0 points, or 0.44 per cent, to 22707.468.
Helping limit the losses was a strong forecast from Broadcom that projected its artificial intelligence chip revenue would exceed US$100-billion next year, sending shares of the chip designer up 3.6 per cent in early trading.
Despite the U.S.-Israeli air war against Iran showing no signs of cooling off, Wall Street’s main indexes have fared better than their European and Asian counterparts this week, aided primarily by a rebound in technology stocks that bore the brunt of February’s selloff.
- Reuters
03/05/26 09:33
TD publishes ‘What lies beneath: Thinking about risks in Canada’
- Scott Barlow
TD Securities head of Canadian and global rates strategy Andrew Kelvin published What Lies Beneath: Thinking About Risks in Canada with a surprising conclusion (my emphasis),
“the Canadian economy finds itself caught between competing narratives. Interminable CUSMA negotiations reinforce underlying (and often exaggerated) fears around the health of the broader economy. The recent surge in energy prices has provided somewhat of an offset in sentiment terms, removing most of the cut pricing in the front-end in Canada. Our core view for Canadian rates to underperform versus the US relies on the Bank of Canada remaining on hold throughout 2026. The drag from trade uncertainty and passthrough from high oil prices are both likely to play a role in BoC deliberations in coming months, but ultimately we think that the outlook for domestic household and government spending will be the most important determinant for the BoC … At the moment, markets are underpricing both the risk of 2026 cuts, and the magnitude of potential tightening in 2027”
Markets underestimating risk of rate cuts this year and rate increases next year is a strange sort of purgatory.
03/05/26 09:02
Canadian dollar weakens, benchmark yield climbs
The Canadian dollar weakened against the greenback on Thursday, and the yield on benchmark government debt climbed.
The loonie was trading 0.1 per cent lower at $1.3648 to the greenback, or 73.27 U.S. cents, after trading in a range of $1.3616 to $1.367.
Canadian government 10-year bond yields rose 4 basis points to 3.326 per cent. The yield on similar U.S. government benchmark debt rose to 4.1402 per cent.
- Reuters
03/05/26 08:41
Berkshire Hathaway resumes stock buybacks, CEO Abel says they help create value
Greg Abel, Berkshire Hathaway Vice Chairman and Warren Buffett, Chairman and CEO of Berkshire Hathaway at the CHI Health Center on Friday, May 2, 2025 in Omaha, Neb.Matthew Putney/The Associated Press
Berkshire Hathaway (BRK.B-N, BRK.A-N) said on Thursday it has begun repurchasing its own shares after a nearly two-year hiatus, as Greg Abel begins putting his stamp on the conglomerate after succeeding Warren Buffett as chief executive in January.
The repurchases began on Wednesday and are Berkshire’s first since May 2024. They may also help Berkshire reduce its US$373.3-billion year-end cash stake, which has grown because Berkshire has struggled to find companies and stocks to buy.
Abel also disclosed he bought 21 Class A shares of Berkshire on Wednesday for about US$15-million, representing the after-tax value of his salary, and planned similar purchases in the future. He now owns 249 Class A shares, worth about US$182-million as of Wednesday.
Speaking on CNBC, Abel said the stock repurchases help Berkshire create value for shareholders over the long term.
Berkshire normally discloses repurchases on a quarterly basis, and Abel said the disclosure that they had resumed is a one-time event.
- Reuters
03/05/26 08:36
Small caps to watch: Earnings from Maple Leaf Foods, A&W, Spin Master, Savaria and more
- Brenda Bouw
Canada’s S&P/TSX Small Cap Index (TXTW-I) is up by about 80 per cent over the past 52 weeks. It hit a record 1,472.51 on Monday. The Russell 2000 in the U.S. is up about 25 per cent over the past 52 weeks. It hit a record of 2,735.10 on Jan. 22.
Here’s a look at some small-cap stocks making news - or about to:
Maple Leaf Foods Inc. (MFI-T) shares could be active today after the company announced fourth-quarter results that beat expectations. Before markets opened on Thursday, Maple Leaf reported sales of $991-million, up from $917-million for the same period a year earlier. The result was ahead of expectations of $986.8-million, according to S&P Capital IQ.
*
A&W Food Services of Canada Inc. (AW-T) reported fourth-quarter earnings that beat expectations. Before markets opened on Thursday, the burger company reported revenue of $93-million, similar to $93.2-million a year earlier and ahead of expectations of $87.5-million.
*
Spin Master Corp. (TOY-T) reported fourth-quarter results that beat expectations. Before markets opened on Thursday, the company reported revenue of $618.2-million, down 4.8 per cent compared to the same quarter a year earlier. The result was ahead of expectations of $604.3-million.
*
Kits Eyecare Ltd. (KITS-T) reported mixed results for its latest quarter.
After markets closed on Wednesday, the company said revenue increased by 20 per cent to a record $53.9-million in the fourth quarter compared to $44.8-million a year earlier. The result was in line with expectations.
*
03/05/26 07:55
U.S. stock futures edge lower as investors weigh Middle East war risks
U.S. stock index futures edged down on Thursday as the Middle East conflict entered its sixth day, raising concerns of fresh inflation pressures that could complicate the Federal Reserve’s monetary policy decisions.
At 7:17 a.m. ET, Dow E-minis were down 173 points, or 0.35 per cent, S&P 500 E-minis were down 11.25 points, or 0.16 per cent, and Nasdaq 100 E-minis were down 38.5 points, or 0.15 per cent.
The CBOE volatility index was marginally higher, reflecting broader investor caution, while futures tied to the rate-sensitive Russell 2000 index were down 0.5 per cent.
Helping limit the losses was a strong forecast from Broadcom that projected its artificial intelligence chip revenue would exceed US$100-billion next year, sending shares of the chip designer up 6.4 per cent in premarket trading.
Despite the U.S.-Israeli air war against Iran showing no signs of cooling off, Wall Street’s main indexes have fared better than their European and Asian counterparts this week, aided primarily by a rebound in technology stocks that bore the brunt of February’s selloff.
The tech-led recovery in the prior session helped the Nasdaq recover all weekly losses, putting it on track to close the week in positive territory if those gains hold through Friday.
- Reuters
03/05/26 07:50
CIBC REIT analyst talks subsector valuations and reiterates top picks
- Scott Barlow
CIBC analyst Dean Wilkinson’s monthly REIT report outlines subsector valuation disparities and restates top picks,
“The REIT sector has recovered from a 20-per-cent NAV discount this time last year to well inside a 10-per-cent discount, a figure that on the surface is approaching long-term averages. However, we still make the observation that averages tend to ignore the [distribution curve] tails; the retail REITs are trading near parity, Seniors housing are at a well-warranted premium, while Industrial REITs at just over a 10-per-cent discount represent good value and the apartments are at a historically wide 20-per-cent-plus average discount, Office REITs remain in what can best be described as a state of flux as the push and pull between valuations and deteriorating fundamentals plays out. In short, and with a great degree of oversimplification, that which is working will likely continue to do so for the time being … Re-iterating Our Top Picks: By asset class, we continue favour Seniors Housing (Chartwell and Sienna), followed by Retail (First Capital and Primaris), Multifamily (Killam [Canada) and GO/MHC [U.S.)] and Industrial (Granite).
03/05/26 07:48
National Bank examines easing housing affordability crisis
- Scott Barlow
National Bank economist and strategist Daren King updated clients on the easing housing affordability crisis,
“The housing shortage in Canada is mainly the result of an unprecedented demographic shock between 2022 and 2024, a period during which the creation of households far exceeded new construction, significantly worsening housing affordability. Although dramatic, household formation could have been even stronger in recent years, given the increase in population. There is no denying that affordability issues and the difficult labour market, particularly for young people, have slowed household formation in recent years. However, our estimates suggest a pent-up demand of only 77,000 households, which is much less than the 208,000 estimated before Statistics Canada’s recent revision of the number of households actually formed between 2022 and 2025. Despite the potential for this pent-up demand to be released, household formation over the next two years is likely to be the lowest on record due to the slowdown in immigration. The housing deficit that has accumulated since 2022 is significant, but it could gradually be absorbed by the end of the decade, given our population and household projections. However, this assumes that housing starts remaining close to their current level. This is where the main risk lies. The housing market is currently facing a paradoxical situation: moderation in demand is helping to improve affordability in the short term, but it is undermining the profitability of real estate projects and increasing the risk of a decline in supply, which could jeopardize a sustainable rebalancing without targeted public support”
03/05/26 07:35
Citi strategist using 2011 Libya intervention as precedent for Iran conflict, warns of unintended consequences
- Scott Barlow
Citi chief U.S. equity strategist Scott Chronert is using the bombing of Libya in 2011 as prologue for the current conflict as he urges clients to prepare for unintended consequences,
“Key observations [from 2011] are: The episode took place early in March of that year but other factors eventually determined the course of equities as time passed. Each of oil prices rising and SPX selling off ahead of the strikes are notable. Interestingly, much as we saw with the strikes on Iran’s nuclear sites last summer, equities rallied into the event while, notably, oil prices continued to rise beyond the intervention itself. Later in the year, equities sold off as the debt ceiling crisis unfolded, along with the U.S. credit downgrade, the European debt crisis, and softer economic indicators driving recession fears. Interestingly, the S&P 500 traded essentially flat for the year, supported by 12-per-cent EPS growth … While we don’t anticipate a 2011 like debt crisis, we do expect that this week’s reprieve from AI disruption may be short lived … Still the important takeaway of this quick note is that we need to be prepared for unintended consequences of the Iran conflict with potential implications to our broader fundamental and equity market views. In this regard, higher-than-expected oil, inflation ramification, and economic headwind on our current soft landing expectation, with negative read through to cyclicals and SMID are one example. Should this put further pressure on the labor condition influenced by AI impacts on white collar jobs then fundamentals do face a headwind”
03/05/26 07:19
Scotiabank strategist predicts changes in low volatility and high dividend indexes
- Scott Barlow
Scotiabank strategist Jean-Michel Gauthier attempted to predict changes in S&P’s TSX Low Volatility and High Dividend Indexes,
“OUR TAKE: Neutral. We highlight our final expected changes for the TSX Low Volatility and High Dividend Index for the March rebalance. Both indexes use February 27 as the reference date and March 11 as the pricing date. S&P will announce all official changes on March 13 after the close. Flows shown below are an aggregate of known and predicted flows for S&P and FTSE. TSX Low Volatility: Adds: GEI, CTC/A, BCE, GRT-U, IIP-U, RCI/B, DIR-U, NWC, SAP. Deletes: TIH, EMP/A, LB, CCL/B, IGM, EFN, MTL, KEY, FFH. CCL/B is now a deletion instead of CNR. All other predictions have remained stable. TSX High Dividend: Adds: OTEX, ARX. Deletes: ARE, EIF”
03/05/26 07:13
Broadcom rallies as it touts more than $100 billion in AI chip sales in 2027
Broadcom shares (AVGO-Q) jumped about 7 per cent before the bell on Thursday after the company said it expects artificial intelligence chip sales to top US$100-billion in 2027, as it pushes into a market long ruled by Nvidia (NVDA-Q).
Big Tech firms such as Alphabet (GOOGL-Q), Microsoft (MSFT-Q), Amazon (AMZN-Q) and Meta (META-Q) are expected to spend more than US$600-billion to build AI infrastructure this year, boosting demand for chips, servers, storage and networking equipment.
Broadcom expects to deliver 3 gigawatts worth of tensor processing units for AI work to Anthropic in 2027, and plans to ship OpenAI’s first AI chip, delivering over 1 GW, in the same year.
The volumes put Broadcom closer to the scale of recent AI chip deals by Nvidia and AMD.
Investors are, however, questioning whether heavy spending on AI will generate sufficient returns to justify the lofty valuations, leading to sharp declines in the world’s most valuable technology stocks
- Reuters
03/05/26 06:57
Thursday’s analyst upgrades and downgrades
- David Leeder
TD Cowen analyst Brian Morrison is projecting Groupe Dynamite Inc. (GRGD-T) to more than the double its earnings per share year-over-year when it reports its fourth-quarter 2025 results later this month, believing “brand strength/pricing, new store openings/repositioning, and e-commerce growth are driving outsized top line growth, and in turn operating leverage.”
“We forecast this algorithm to continue, that we believe could lead to upside to the consensus Q4/F25 and F2026 outlook,” he added. “This along with strong FCF generation continues to justify its premium valuation.”
Read more: Here
Other companies mentioned include: Arizona Sonoran Copper; Automotive Properties REIT; Athabasca Oil; Baytex Energy; Canadian Packers; Capital Power; Dexterra Group; DRI Healthcare; Evertz Technologies; Gran Tierra Energy; Hudbay Minerals; Kits Eyecare; MDA Space; NexGen Energy; Parex Resources; SSR Mining; Vermilion Energy; VerticalScope
03/05/26 06:44
South Korean stocks close up 9.63 per cent, rebounding from worst-ever crash
A currency dealer looks at the work report in front of an electronic screen showing South Korea's benchmark stock index (KOSPI) in a foreign exchange dealing room at the Hana Bank headquarters on March 5.Han Myung-Gu/Getty Images
South Korea’s benchmark KOSPI index closed up 9.63 per cent after surging as much as 12.2 per cent on Thursday, swiftly erasing most of its worst-ever daily drop from a day earlier, buoyed by hopes for progress in U.S.-Iran diplomacy.
The benchmark KOSPI closed up 490.36 points, or 9.63 per cent, at 5,583.90, regaining most of Wednesday’s 12.06-per-cent loss.
Among index heavyweights, chipmaker Samsung Electronics rose 11.27 per cent, while peer SK Hynix gained 10.84 per cent. Battery maker LG Energy Solution climbed 6.91 per cent.
The rebound followed a New York Times report on Wednesday suggesting Iran’s Ministry of Intelligence had signaled a willingness to engage in talks with the U.S. Central Intelligence Agency to seek an end to the war, citing officials briefed on the matter.
The share index climbed to 5,685.47 at the open,
“Oil has somewhat stabilized overnight and there’s definitely more confidence among foreign investors about a potential resolution. The rebound is strong especially for chips,” said Seo Sang-young, an analyst at Mirae Asset Securities Co.
- Reuters
03/05/26 06:08
TSX futures muted as Middle East conflict weighs
Futures tracking Canada’s main stock index were muted on Thursday, even as gold and oil prices gained, with investors being cautious amid the rising Middle East conflict.
March futures on the S&P/TSX composite index were down 0.02 per cent, as of 5:34 a.m. ET.
The conflict in the Middle East, which has pressured global markets, entered its sixth day with Israel launching a large wave of strikes on Tehran after Iranian missiles sent millions of Israelis rushing into bomb shelters.
On Wall Street, U.S. S&P 500 e-mini futures and Nasdaq 100 E-minis were flat.
- Reuters
03/05/26 05:30
Before the bell: What every Canadian investor needs to know today
- S.R. Slobodian
Wall Street futures were in the red after major North American markets closed higher yesterday.
TSX futures edged lower even as commodity prices climbed.
In Canada, investors are getting results from Canadian Natural Resources Ltd., Maple Leaf Foods Inc., Methanex Corp. and Spin Master Corp.
On Wall Street, markets are watching earnings from Costco Wholesale Corp., Marvell Technology Inc. and Aecon Group Inc.
“Headlines do not point to a near resolution of the Middle East conflict, meaning the risk of further stress remains very much in play,” Ipek Ozkardeskaya, senior analyst at Swissquote, wrote in a note.
03/05/26 05:15
Gold prices rise as safe-haven demand grows
Gold prices rose on Thursday, lifted by safe-haven demand amid an escalating war in the Middle East, while a stronger dollar and concerns around the U.S. Federal Reserve’s monetary policy capped gains.
Spot gold was up 0.6 per cent at US$5,168.43 per ounce, as of 3:55 a.m. ET. U.S. gold futures for April delivery were up 0.9 per cent at US$5,179.20.
Israel launched a large wave of strikes on Tehran on Thursday, targeting what it said was infrastructure belonging to the Iranian authorities, after Iranian missiles sent millions of Israelis rushing into bomb shelters.
“On the one hand, there may be greater safe-haven demand for gold given the ongoing conflict in the Middle East. On the other hand, the risk of a prolonged period of higher energy prices that takes rate cuts off the table, and adds to the chance of rate hikes, could be capping further gains,” said Hamad Hussain, a climate and commodities economist at Capital Economics.
The U.S. dollar rose about 0.3 per cent after briefly retreating from three-month highs, as the fallout from the war roiled global markets and kept sentiment fragile. Concerns about energy supply continued to drive up oil prices and stoke inflation fears.
- Reuters
03/05/26 05:10
U.S. stock futures slip as oil prices climb higher and Iran launches new attacks
European shares slipped Thursday despite rebounds in Asia and on Wall Street, as Iran launched new attacks and threatened the U.S.
U.S. futures also fell back, with the contract for the Dow Jones Industrial Average losing 0.5 per cent, while that for the S&P 500 shed 0.3 per cent.
Uncertainty about the war in the Middle East has been rattling financial markets, with most taking their cues from what the price of oil is doing.
“Yesterday’s bounce in risk assets already looks less like a turning point and more like a classic relief rally in a market that briefly inhaled before realizing the room was still on fire,” Stephen Innes of SPI Asset Management said in a commentary.
The war brought a fresh wave of attacks by Iran on Israeli and American bases. Iran warned the United States would “bitterly regret” torpedoing an Iranian warship in the Indian Ocean and a religious leader called for “Trump’s blood,” while Israel said it had begun a “large-scale” attack on Tehran.
- The Associated Press
03/05/26 05:07
Oil rises on supply concerns as Iran conflict widens
Oil prices rose on Thursday, extending a rally as the escalating U.S.-Israeli war with Iran continued to disrupt supplies, prompting some major producers to cut production and others to take measures to ensure supply security.
Brent crude was up US$2.35, or 2.9 per cent, at US$83.75 per barrel by 3:50 a.m. ET, a fifth session of gains. U.S. West Texas Intermediate crude rose US$2.42, or 3.2 per cent, to US$77.08.
Oil markets are tightening, with the Chinese government telling the largest oil refiners to suspend exports of diesel and gasoline, said PVM analyst John Evans.
Crude oil markets remained on edge as they face ongoing risks to supply following the attacks in the Middle East, with concerns centred on trade flows through the Strait of Hormuz, ANZ analysts said in a note on Thursday.
Around 300 oil tankers remained inside the Strait as vessel traffic in and out of the chokepoint nearly halted following the outbreak of war, according to ship tracking data from Vortexa and Kpler that excludes some of the smallest tankers.
- Reuters
03/05/26 04:30
Wednesday markets recap: North American stocks rise after reports Iran is open to talks
North American stocks closed up on Wednesday, after a news report that Iran had signalled openness to talks and a pledge by President Donald Trump to steady oil markets calmed investor anxiety about the Mideast clash.
The S&P/TSX composite index ended up 157.92 points, or 0.5 per cent, at 33,942.86, but held well below the record closing high that was set on Monday.
The Toronto market’s technology sector rose 2.2 per cent, led by a 6 per cent gain for the shares of e-commerce company Shopify Inc.
Both heavily weighted financials and the materials group, which includes metal mining shares, added 0.5 per cent. The price of gold rose 1 per cent as the recent rally in the U.S. dollar paused.
U.S. stocks also closed up after a news report that Iran had signalled openness to talks on ending the war.
The S&P 500 gained 52.83 points, or 0.78 per cent, to end at 6,869.46 points, while the Nasdaq Composite gained 290.79 points, or 1.29 per cent, to 22,807.48. The Dow Jones Industrial Average rose 228.86 points, or 0.49 per cent, to 48,738.98.
U.S. investors flocked again to tech shares, lifting the Nasdaq and keeping the tech-heavy index in positive territory. The S&P 500 remained close to its all-time closing high, reached in January.
Major North American stock indexes fell Tuesday along with bond prices and the price of gold as investors worried that a spiralling war in Iran may be growing into a drawn-out regional conflict with global economic implications.
While markets pared earlier losses after comments from U.S. President Donald Trump that the U.S. would insure oil tankers through the Strait of Hormuz and escort them if necessary, analysts said that investors remained concerned about further escalation of the three-day-old conflict.
“The market is still nervous … risk sentiment will remain very tempered until we get some more concrete signs of de-escalation or negotiation,” George Davis, chief technical strategist, global markets at RBC Capital Markets, said in an e-mailed response to questions.
Canada’s broad TSX/SPX Composite Index fell more than 4 per cent before paring losses to end 2.2 per cent lower at 33,784.94 . It was weighed down by materials companies, with a subindex tracking the sector slumping more than 7 per cent on the day.
The S&P 500 index closed down 0.9 per cent and the tech-heavy Nasdaq index lost 1 per cent.
- Globe staff with wire services