Here are five things you need to know this morning
Tech earnings boost markets: North American stocks were set to open higher Thursday, as strong earnings from two titans of the tech sector reassured investors. Shares of Meta rallied in the pre-market after a revenue beat in the first quarter. Meta’s advertising sales, which make up 98 percent of its business, also defied analyst concerns about the impact of the trade war on the global economy. The company behind Facebook and Instagram is investing heavily to keep up with OpenAI and Google in developing large language models and chatbots. Microsoft shares also moved higher in the pre-market after a quarterly sales beat that was driven by its Azure cloud business. The company says that business could grow by 35 per cent in the current quarter despite the tariff backdrop. Microsoft’s heavy investments in AI infrastructure continued in the quarter as it constructed more data centres to keep up with AI demand.
GM cuts forecast on tariff impact: General Motors has lowered its full-year profit forecast just two days after suspending earnings guidance, citing exposure to auto tariffs brought in by the White House. The company says it now expects earnings before interest and taxes to fall to a range of US$10 billion to $12.5 billion, down from its initial guidance in January of as much as $15.7 billion. GM’s lowered guidance comes even after U.S. President Donald Trump issued what he’s characterized as relief for automakers by lowering some levies on imported vehicles and parts. Even so, GM expects a hit to its profits this year unless trade deals are cut with key automotive trading partners that would reduce the automaker’s exposure.
CPKC lowers outlook: Canadian Pacific Kansas City has also cut its financial outlook for this year due to the uncertainty caused by the U.S. administration’s tariff and trade policy. The Calgary-based company lowered its earnings growth forecast to between 10 and 14 per cent from between 12 and 18 per cent. CEO Keith Creel also cited the heightened risk of an economic recession. The railway is highly exposed to the trade war due to its network stretching from Mexico to Canada. In the quarter that just ended, revenue increased by nearly eight per cent, and adjusted profit rose by 14 per cent, both topping analyst estimates.
Couche signs NDA with Seven & i: Alimentation Couche-Tard has moved forward in its plans to buy the parent company of rival convenience store chain 7-Eleven, with a non-disclosure agreement that gives it access to Seven and i’s financial information. The companies have also signed a standstill provision that would limit both parties from taking actions for a certain period. Couche-Tard has been working on a US$51.7 plan to buy the Japanese company since last year.
CEOs on BNN: We have a stellar lineup of top executives on BNN Bloomberg today to tell us about their companies’ latest results, and how they are dealing with challenges going forward. We will speak with Cecilia Williams, President and CEO of Allied Properties REIT, Tim Gitzel, President and CEO of Cameco, John McCluskey, President and CEO of Alamos Gold, and Mark Barrenechea, CEO of Open Text.
