Here are five things you need to know this morning
Slow growth for Canadian economy: The Canadian economy continues to show tepid growth. Gross domestic product rose by just 0.2 per cent in February after rising 0.1 per cent in the month prior. StatCan estimates the economy showed no growth at all in March. Output rose in eight of 20 industrial sectors in February, with manufacturing leading the way, rising 1.8 per cent month over month, the largest increase since January 2023.
Mixed results from big tech: The latest earnings results from the big U.S. tech companies are the big story for investors today. Shares of Alphabet surged in the premarket. The Google parent beat expectations on both revenue and profit, with particular strength in its cloud business. Amazon also traded higher as results point to improving momentum in its cloud business as well. On the downside, Microsoft shares lost ground as growth in its Azure business disappointed some investors, while shares of Meta fell sharply amid concerns about higher spending tied to its AI plans.
Services business drives Bombardier cash flow: Bombardier posted stronger first-quarter results, with both profit and revenue up from a year ago. Profit jumped by 20 per cent; revenue also rose, driven by the services side of its business. Bombardier says its order backlog has topped twenty billion dollars, and it now expects full-year free cash flow to be US$1 billion, which is at the upper end of its guidance range.
Canadian Pacific misses expectations: Canadian Pacific Kansas City posted Q1 results that missed expectations. The railway posted lower-than-expected earnings, with revenue also coming in slightly below forecasts. Freight revenue declined from a year ago, reflecting weaker shipping volumes and pricing pressures. The company says it continues to face macroeconomic headwinds, even as overall volumes showed some growth.
Gildan beats estimates: Gildan Activewear posted first-quarter results that beat expectations. Revenue came in at a record $1.17 billion. The company says the integration of its Hanes Brands acquisition is on track, with higher savings expected this year. Gildan is also maintaining its full-year outlook.
