What to Watch on the TSX on Tuesday, April 26
The S&P/TSX Composite Index got off to a poor start this week, down about 2% on Monday. Inflation, interest rates, and slower earnings reports have all weighed heavily on the TSX today. While we’ll have to wait and see if more drops are coming this week, we can at least look out for a few things.
Global markets fall
The COVID outbreak in China continued to weigh on the markets on Monday, leading to fears over how North American and European markets would react. Rightly so, as the markets across the world fell over fear of increasing inflation.
Meanwhile, crude oil prices also fell due to virus-related restrictions in China. In fact, there was an increase in lockdowns in the country, leading to analysts slashing forecasts for the country’s gross domestic product (GDP).
Earnings to watch
Several Canadian companies report earnings on Tuesday, but most will likely be interested in Air Canada (TSX:AC). The airline company is set to report before market open, with a consensus earnings per share (EPS) expected at a loss of $1.48. The company beat out estimates last quarter, posting a loss of $1.26 per share, instead of the predicted loss of $1.56.
Both Canadian railway companies are due to post earnings this week, but Canadian National Railway (TSX:CNR)(NYSE:CNI) comes first with its report after the market close. CNR stock will likely have more to say about the stance of the Surface Transportation Board denying its bid for Kansas City Southern.
Furthermore, CNR stock is likely to post less-than-stellar earnings thanks to a slow winter coupled with this ongoing drama. Hopefully the company has strong plans for the spring and summer months to see shipping increase. Analysts estimate an EPS of $1.38.
Stocks to watch
Motley Fool investors will finally want to keep watching tech stocks, including Shopify (TSX:SHOP)(NYSE:SHOP), which hit 52-week lows on Monday. The e-commerce company is still reeling from the announcement that Amazon would launch its “Buy With Prime” platform. This will allow merchants to include Amazon Pay on their own websites. Shares have dropped 18% last week alone.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Amy Legate-Wolfe owns AIR CANADA and Shopify. The Motley Fool owns and recommends Shopify. The Motley Fool recommends Amazon and Canadian National Railway.
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