Stock market: winners and losers on May 10


(Illustration: Camille Charbonneau)

Canada’s main stock index fell slightly on Friday after closing at a record high the previous day as markets reacted to a much stronger-than-expected jobs report. US stock markets were mixed.

Markets on both sides of the border are much more uncertain today than they were at the start of 2024, said Adelaide Chiu, portfolio manager, vice president and head of responsible investing at NEI Investments.

“I think if you had asked anyone at the beginning of the year, they would have said that the rate cut was much earlier than what we are seeing now,” he says.

On Wednesday, valuations are high and markets are doing well, but volatility associated with interest rate cuts is high, Ms Chiu says.

Economic data in the United States showed surprising resilience, significantly pushing back expectations for cuts, while the economy weakened further in Canada, leading many to bet on cuts from June.

However, Friday’s Canadian jobs report complicated that view, Chiu said.

The economy posted its biggest increase in employment in more than a year in April, reducing the chances of a cut in June as the jobless rate held steady.

The Bank of Canada is in a difficult position, Chiu says, because it risks cutting interest rates too soon and reigniting inflation, or cutting too late and raising recession risks.

In the United States, a preliminary report from the University of Michigan suggests that consumer confidence is weakening much more than economists had expected.

While the report shows weakness, the overall economic picture painted by recent data in the United States is unclear, Ms. Chiu says.

“I think that’s where the big confusion lies,” she said. It’s hard to read the data.”

Next week, several major economic reports in the United States could lead to further market moves, Ms. Chiu says, particularly consumer price inflation and producer price inflation.

Here are the winners and losers for May 10, 2024:












S&P/TSX TSE index
Price Change ($CAN) Change (%)
The winners
Copperleaf Technology (CPLF) 8.91 1.64 22,558
ECN Capital (ECN) 2.00 0.24 13,636
IAMGOLD (IMG) 5.87 0.60 11,385
Losers

Docebo (DCBO)

48,68

-14.79

-23,302
Power Source Services (SHLE) 12.07 -2.83 -18,993
CI Financial (CIX) 14.72 -2.03 -12,119

Only titles worth more than $1 are considered in the winner/loser ranking.

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