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Noah Zivitz

Managing Editor, BNN Bloomberg

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Supply chain problems were (almost) no match for Apple in the latest quarter. It posted all-time record revenue of US$123.9 billion in its fiscal first quarter. That beat expectations, was 11 per cent more than a year earlier, and is propelling its shares higher in pre-market trading. The only obvious pocket of weakness in the quarter was its iPad business, which saw revenue fall 14 per cent and miss expectations. During a call with analysts, CEO Tim Cook acknowledged Apple’s line of tablets is still dealing with supply constraints. But that’s one small blemish in another impressive quarter. Would love to know if it’s simply Apple’s clout that allows it to bypass the worst of global supply problems, or if this is a sign the bottlenecks that’ve plaguing the economy are finally easing.

MARKET WATCH

U.S. futures have been mixed this morning, with only the Nasdaq 100 contract most recently in the green. This week repeatedly demonstrated that the early move is no indication of how the session will end. One saving grace for the S&P/TSX Composite Index during this bout of volatility has been the energy group, which is now up 10.5 per cent this year. Fantastic timing for us to have Ninepoint Partners Senior Portfolio Manager Eric Nuttall booked on Market Call today.

A SNAPSHOT OF CANADIAN HOMEBUYERS

Based on a new survey for BNN Bloomberg and RATESDOTCA, it looks like nearly one-in-five Canadian homebuyers in the last 18 months already owned multiple properties. That would fit with some of the data we’ve seen lately about investors in the market, and reinforces the need for more supply. RATESDOTCA Managing Editor John Shmuel joins us shortly after 4 p.m. today to discuss this and other key takeaways from the survey.

KENNEY IN D.C.

Alberta’s premier is scheduled to arrive in Washington, D.C. today, where he’ll attend the National Governors Association’s annual meeting and make the case for Enbridge’s Line 5 pipeline and talk about supply chains. We’ll catch up with Jason Kenney at 1:40 p.m. ET/11:40 a.m. MT.

CANADA’S LNG OPPORTUNITY

We’ve got Pieridae Energy CEO Alfred Sorensen teed up for Commodities. Looking forward to learning more about his board’s decision to stay the course after evaluating strategic alternatives, and what the future holds for its Goldboro liquefied natural gas plan on Canada’s East Coast. Can only imagine the flotilla of U.S. LNG shipments that pounced at the opportunity to cash in on Europe’s energy crisis left him champing at the bit.

OTHER NOTABLE STORIES

  • Canadian Pacific Railway turned in a choppy batch of fourth-quarter results late yesterday. Adjusted profit per share fell and missed expectations. Revenue was essentially flat. And the adjusted operating ratio deteriorated to 57.5 per cent (CN just reported 57.9; a lower number is better). Some of the blame for the performance can be pinned on a 13% per cent drop in revenue from grain shipments. As for the pending takeover of Kansas City Southern: that resulted in $36 million in expenses in the latest quarter.
  • No doubt CP was hobbled by the extreme weather events in British Columbia, and that’s true as well for Teck Resources. The miner today warned on fourth-quarter steelmaking coal sales as a result. It also cautioned that it might need to scale back production due to high inventory stemming from logistics problems.
  • Growth is slowing at Robinhood Markets. The company behind the app for stock traders saw transaction-based revenue increase just 12 per cent in the fourth quarter, compared to the gain of 32 per cent in the third quarter. Notably, cryptocurrency trading revenue jumped 304 per cent year-over-year, less than half the rate of growth posted in the prior quarter. And equities activity fell outright. Toss in the swing to a loss, a warning that first-quarter revenue will tumble (when the company is up against tough comps of the meme stock bonanza last year), and HOOD shares are sinking in pre-market trading.
  • Franco-Nevada announced a dividend hike last night. The quarterly payment is going up 6.7 per cent to US$0.32 per share, as of March 31.
  • Unionized warehouse workers at Sobeys scored a victory, with Unifor claiming a “massive wage increase” in a new collective agreement with the supermarket operator. According the Unifor, some employees (those with more than 8,000 hours of service) are getting an 11.3 per cent immediate raise, with a total raise of 19.5 per cent over the term of the deal. The deal also includes wage parity for part-time workers, as well as raises for part-timers.

NOTABLE RELEASES/EVENTS

  • Notable data: U.S. personal income and spending
  • Notable earnings: Chevron, Caterpillar
  • 1400: U.S. President Joe Biden delivers remarks on strengthening supply chains and broader agenda at Carnegie Mellon University