'People get very sick': Manitoba sees rise in rare, potentially fatal bacterial infection
A rise in cases of a rare bacterial infection in Manitoba has prompted health officials to issue a warning.
Wall Street dipped on Tuesday following some mixed earnings reports, as stocks remain roughly where they've been stuck for more than a month.
The S&P 500 fell 18.95 points, or 0.5 per cent, to 4,119.17. The Dow Jones Industrial Average lost 56.88, or 0.2 per cent, to 33,561.81, while the Nasdaq composite fell 77.36, or 0.6 per cent, to 12,179.55.
Paypal fell 12.7 per cent despite reporting better profit and revenue for the latest quarter than expected. Analysts pointed to its forecast for how much profit it expects to wring out of each $1 of revenue, which may have disappointed some investors.
Electric automaker Lucid Group dropped 5.6 per cent after reporting a worse loss than expected for the latest quarter.
Skyworks Solutions sank 5.2 per cent after reporting profit for the first three months of the year that matched forecasts. The company's comments about weakness in demand from China for Android phones may have frightened investors.
On the winning side of Wall Street was Palantir Technologies. It soared 23.4 per cent after reporting a stronger profit than expected and saying demand for its new artificial intelligence platform "is without precedent."
So far this earnings reporting season, which is approaching its final stretch, the majority of companies have been topping forecasts for first-quarter results. That's largely because expectations were set quite low due to a slowing economy and high interest rates. Companies in the S&P 500 are still on track to report a second straight quarter of weaker profits from year-earlier levels.
"Companies have been able to do pretty well," said Margie Patel, senior portfolio manager at Allspring Global Investments.
The better-than-feared results have given some support to Wall Street even as many other worries are weighing on it.
Key among them is what will happen to the U.S. banking system, which is under stress following three high-profile bank failures since March. Hurt by much higher interest rates, smaller and mid-sized banks are scrambling to reassure everyone that their deposits are stable and that they aren't at risk of a sudden exodus of customers.
Stocks of regional banks under the heaviest scrutiny by Wall Street were shaky on Tuesday. PacWest Bancorp rose 2.3 per cent after coming back from an earlier loss. Western Alliance Bancorp dropped 1.4 per cent after swinging between losses and gains.
The next big milestone for the market will be Wednesday's report on inflation at the consumer level. Inflation has come down from its peak last summer, but it's remaining stubbornly high. That's raised uncertainty about what the Federal Reserve's next move will be.
The central bank has already yanked its benchmark interest rates to a range of 5 per cent to 5.25 per cent, up from from virtually zero early last year. High rates can undercut inflation, but only by smothering the economy and hurting investment prices bluntly.
Many investors are preparing for a recession to hit later this year because of much higher rates, as well as the potential for banks to pull back on lending because of the industry's troubles. Even though the job market has remained resilient and the unemployment rate is remarkably low, other areas of the economy have shown more weakness like manufacturing.
"It seems that although they have more data and information than anybody, the Fed seems myopically focused on the inflation rate and unemployment rate rather than looking at the big picture," Allspring's Patel said. "What does the person on the street see? I think they see a lot more things to be concerned about than the Fed."
She is hopeful that stocks can have positive returns this year, but she's quick to say that's not an expectation.
"I want to be optimistic, but when you look at the facts, you have to temper that quite a bit," she said.
Worries about a recession and expectations for possible cuts in rates by the Fed have caused yields to pull back since early March.
Also looming over the market is a June 1 deadline. That's when the U.S. government could potentially run out of cash to pay its bills unless Congress allows it to borrow more. The widespread expectations is for Congress to come to a deal before that deadline because the alternative would be severe damage to the economy and financial markets.
But each day that passes without a deal threatens to raise concerns.
In the bond market, the 10-year Treasury yield rose to 3.52 per cent from 3.51 per cent late Monday. The two-year Treasury yield, which moves more on expectations for the Fed, rose to 4.02 per cent from 4.00 per cent.
------
AP Business Writers Yuri Kageyama and Matt Ott contributed.
A rise in cases of a rare bacterial infection in Manitoba has prompted health officials to issue a warning.
Residents of some provinces are being warned of extreme heat this week, while elsewhere, some saw record-breaking lows this weekend.
A third girl accused in the death of a homeless Toronto man has pleaded guilty. The teen, who was 13 at the time of the incident, pleaded guilty this morning to manslaughter in the death of Kenneth Lee.
The United States, Canada, Japan, and the Philippines conducted a two-day joint maritime exercise in Manila's exclusive economic zone in the South China Sea, the U.S. Pacific Fleet said on its website on Monday.
A new report says travellers are paying significantly more to fly within Canada this summer compared with last year.
The Trooping the Colour marked the first public outing this year for the Princess of Wales, who has not been seen at any official royal engagements since December 2023. We now know that was due to abdominal surgery and preventive chemotherapy, with no return to public life anytime soon. But the Princess of Wales chose this occasion to soft launch her return to royal life, and it was eagerly anticipated.
An Indian man suspected by the U.S. of involvement in an unsuccessful plot to kill a Sikh separatist on American soil pleaded not guilty on Monday to murder-for-hire conspiracy charges in a federal court in Manhattan.
The Transportation Safety Board says other unregistered submersibles have been operating within Canadian waters since the Titan made its doomed descent to view the Titanic wreck one year ago.
Gordon Ramsay says he’s grateful to be alive but shaken after a recent cycling accident in Connecticut.
For some, living on the moon is an idea that is truly out of this world. But for others, it’s a concept edging closer to reality.
Halifax chef Lauren Marshall was working in the Bahamas on a special event in February when she fainted and fell from a golf cart, hitting the back of her head.
The thunderstorm that hit Ottawa Thursday evening was accompanied by heavy rain and lightning that struck a house in Orléans.
Canadian and U.S. ironworkers shook hands across the border as the Gordie Howe bridge deck officially becomes an international crossing.
Age may be just a number to George Steciuk, but it’s just one of many that add up to one inspirational athlete.
It has taken more than 100 years, but Almonte’s forgotten soldier, George B. Monterville has had his name etched back into history.
For Father's Day, CP24.com and CTVNewsToronto.ca reached out to local politicians, community advocates, and other prominent figures in the city to ask them to share what important lesson they have learned from their dads.
Fancy Pokket owner Mike Timani has decided to create a 220-foot long flat bread to celebrate its 35th anniversary.
If certain goals that are in the Paris Climate Accord aren't met, the existence of polar bears in the Hudson Bay may come to an end.