Canadian Market Remains Weak In Cautious Trade

The Canadian stock market, which opened on a weak note Friday morning, continues to languish in negative territory in mid afternoon trades.

Weak cues from European markets, where stocks drifted lower amid concerns about coronavirus and some disappointing earnings updates, contribute to the decline.

Investors are also digesting the latest batch of economic data, in addition to reacting to earnings announcements.

Healthcare and energy stocks are among the major losers. A few stocks from financial and materials sections are also notably lower.

Consumer discretionary stocks are faring well and there are notable gains for some shares from industrials, consumer staples and telecom sectors as well.

The benchmark S&P/TSX Composite Index is down 77.55 points or 0.4% at 20,234.23, about 25 points off the session's low of 20,209.90.

Among healthcare stocks, Tilray Inc (TLRY.TO) is down 5.2% and Canopy Growth Corp (WEED.TO) is declining 2.7%. Trillium Therapeutics (TRIL.TO) and Organigram Holdings (OGI.TO) both are down by about 1.6%.

In the energy section, Imperial Oil (IMO.TO), Arc Resources (ARX.TO), Tourmaline Oil Corp (TOU.TO), Suncor Energy (SU.TO), Whitecap Resources (WCP.TO) and Vermilion Energy (VET.TO) are down 2 to 3.1%.

SNC-Lavalin Group Inc. (SNC.TO) reported second-quarter net income of C$45.72 million, compared to last year's loss of C$111.65 million. Adjusted net income attributable to SNC-Lavalin shareholders was C$56.8 million or C$0.32 per share, compared to C$28.3 million or C$0.16 per share a year ago. Ian Edwards, President and CEO of SNC-Lavalin said the group is on track to meet its 2021 outlook expectations. The stock is rising 0.7%.

Telus Corp. (T.TO) reported second-quarter net income of $335 million, up 15.5% over a net quarter of $290 million recorded in the second quarter of the previous year. Telus shares are gaining about 0.6%.

George Weston Ltd. (WN.TO) reported adjusted net earnings of $272 million for the second quarter, an increase of $133 million from the year-ago quarter, primarily due to the improvement in the underlying operating performance of Lobalaw. The stock is down slightly.

Restaurant Brands International Inc. (QSR.TO) shares are up nearly 3.5%. The company reported adjusted net income of $358 million for the second quarter of this financial year, compared to net income of $154 million a year ago.

A report from Statistics Canada said the Canadian economy likely expanded 0.7% month-on-month in June. In May, the GDP contracted 0.3% following an upwardly revised 0.5% decline in the previous month, the report said.

Another data from Statistics Canada showed the industrial product price index in Canada was flat in June, compared to initial estimates of a 0.4% fall. Producer prices increased 16.8% in June over the same month in the previous year.

Raw materials prices index increased 3.9% from a month earlier in June, rising for a ninth straight month. Year-over-year, the index was up 38.1% in June.

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