Here are five things you need to know this morning
Ad sales power Alphabet: While tariffs and trade tensions have been top of mind for investors of late, earnings season is in full swing, and results from several major companies in North America are in the spotlight today. Shares of Alphabet traded higher in the pre-market, after the parent company of Google reported first-quarter revenue and profit that exceeded analysts’ expectations. The results were driven by continued strength in its search advertising business. Some investors have worried that artificial intelligence tools such as Chat GPT will cut into Google’s search business.
Intel’s woes continue: Its a different story at Intel. Shares of the chipmaker traded lower in the premarket after the company gave an outlook that was weaker than expected. Intel says it plans to continue cutting jobs and warned that it only expects to break even in the current quarter. The former leader in the semiconductor industry has been trying to catch up to rivals such as Nvidia and TSMC, especially when it comes to chips used by the artificial intelligence sector.
Agnico glitters: We also have earnings reports from several significant companies in Canada. Gold miner Agnico Eagle topped profit and revenue expectations in its latest quarter, helped by the continually rising price of bullion. The company also said that it expects both its costs and revenues to be largely unaffected by trade tariffs. Agnico has been one of the best performing stocks on the TSX, with shares doubling in value over the past year. We’ll find out more when we speak with the company’s CEO Ammar Al-Joundi at 1:45 PM ET today on BNN Bloomberg.
Celestica rides tech wave: Another top performing Canadian company has also released its latest earnings. Toronto-based Celestica manufactures electronics on a contract basis for some of the world’s biggest technology companies. Its shares quadrupled last year as it rode the AI-related stock rally. Its shares have been more volatile this year, but its underlying business continues to grow. Celestica has boosted its revenue guidance for 2025 – it now expects to bring in $10.85 billion. The company also raised its profit forecast.
China tariff exemptions: Reuters is reporting that China has exempted some U.S. imports from its 125 per cent tariffs and is asking firms to identify critical goods they feel need to be levy-free. The report cites business sources in China … and says the exemptions include some pharmaceuticals and aerospace supplies. The Chinese government has not yet communicated publicly on any exemptions … but the development is still being taken as a sign that the world’s two largest economies may be prepared to rein in their conflict.
