Here are five things you need to know this morning
Markets boosted by ruling on Trump tariffs: North American stock markets are on course for a positive opening thanks to two factors. The first is a U.S. court ruling that may block many of the tariffs U.S. President Donald Trump has threatened and imposed on other countries. In a ruling issued late Wednesday, a three-judge panel for the U.S. Court of International Trade declared that the Trump administration had wrongly invoked a 1977 law in imposing his “Liberation Day” tariffs on dozens of countries and they were therefore illegal. It also extended that ruling to previous tariffs levied on Canada, Mexico and China over the security of the U.S. border and trafficking in fentanyl. The Trump administration says it will appeal.
Nvidia outlook eases concerns: The second factor boosting markets this morning is the latest earnings report and forecast from Nvidia. The microchip giant soothed investor fears about a slowdown in its growth, saying that the AI computing market is still poised for “exponential growth.” Nvidia expects revenue of about US$45 billion in the second fiscal quarter, which runs through July. Sales in the quarter just ended rose 69 per cent to US$44.1 billion, and profit topped analyst expectations.
Royal Bank earnings below estimates: Here at home, we have quarterly earnings reports from two more big Canadian banks. Profit at Royal Bank missed estimates, as it set aside more money than expected to cover possible loan losses. Provisions for credit losses totaled $1.42 billion. RBC is increasing its quarterly dividend by six cents to $1.54 per share and plans to buy back as many as 35 million shares.
Capital markets power CIBC to earnings beat: Meanwhile Canadian Imperial Bank of Commerce beat estimates on higher revenue across the business, including at its capital-markets unit, which was boosted by volatile trading conditions. On a conference call this morning, CIBC’s chief risk officer said impaired loan losses are trending at the low end of guidance, and the bank continues to monitor the environment around trade and tariff policies.
BRP CEO to retire: Sales and profit fell in the latest quarter at BRP Incorporated, but narrowly beat analyst expectations. The Quebec-based maker of Ski-Doos and all-terrain vehicles says demand for its products remains soft due to a challenging macro environment, and given the uncertainty, the company is still refraining from making financial projections at this time. BRP also announced that its president and CEO, José Boisjoli, will retire by the end of the fiscal year, at which time he will also step down from his role as board chair.
