The Daily Chase: Cargojet revenue falls, Tesla shares under pressure
BNN Bloomberg
Here are five things you need to know this morning.
Here are five things you need to know:
Shake it off: Markets are looking to shake off overnight woes from China. Asian markets had a tough time after one of China’s top wealth managers missed payments on multiple high-yield products. Adding to that, the country’s biggest property developer asked for more time to make debt payments. Tonight could fan the flames when we get industrial production, retail sales and fixed asset investment data. In Canada, we will watch for the Bank of Canada’s senior loan officer survey at 10:30 a.m., and tomorrow we get inflation data. In markets, I am looking at 50-day moving averages. The NASDAQ just broke below its 50-day moving average for first time in 103 days. Nine out of 10 times the NASDAQ has been lower a week later, according to Bespoke. Meanwhile, the TSX Energy and the S&P 500 Energy indexes broke above their 50-day moving averages in July and have advanced eight per cent and 11 per cent respectively since. Oil advanced for a seventh week in a row and hit a nine-month high.
Cargojet doesn't do experiential: Revenue at the air cargo airline fell 15 per cent, which is the biggest quarterly drop in sales since 2010. It was also worse than feared. The company blames a shift in consumer spending toward travel and leisure versus our little brown Amazon boxes (I’m paraphrasing). The company doesn’t expect this to be a permanent state of affairs but in the meantime it’s focusing on cost containment. The stock is bouncing around the lowest level since 2020. We will see how the market reacts at the open.