The Daily Chase: Markets point to a negative open; CN Rail raises growth forecast
BNN Bloomberg
North American equity markets are pointing to a lower open as we await the kick-off of big tech earnings season.
CN RAIL TOPS Q1 ESTIMATES, RAISES FORECAST
Speaking of forecasts, we've got a fresh view out of the nation's largest rail carrier. CN Rail is raising its adjusted earnings per share growth forecast to the mid-single digits for the year, up from the low single digits) after topping first-quarter estimates on the top and bottom lines. Few factors at play when it comes to that Q1 beat – bumper crop revenues helped drive a 38 per cent increase in adjusted EPS and the company was able to pass on rising fuel costs to customers through higher surcharges. CN's operating ratio – a key metric of efficiency, where like gold, lower is better – also improved, falling 5.4 percentage points to 61.5 per cent. If we're looking for a fly in the ointment (not to mention a read on the state of the consumer,) it's on the intermodal side of things – revenue there fell four per cent, indicating lower demand for those shipping containers transporting consumer goods.
REMOTE WORK DEMANDS EXACERBATE PSAC STRIKE
