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Inside the Market Market movers: Stocks that saw action on Tuesday - and why

A roundup of some of the North American equities making moves in both directions today

On the rise

Home Depot Inc. (HD-N) was up 4.4 per cent even after cutting its full-year sales forecast on Tuesday, blaming a slump in lumber prices and the potential impact of the ongoing U.S.-China trade war on consumer spending.

Lumber futures have fallen about 16 per cent since their 2019 highs in early February, as land and labour shortages have constrained builders’ ability to construct new houses, creating a supply glut for the key building material. That hurt Home Depot’s results as lumber accounts for roughly 8 per cent of the company’s sales.

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A day after its shares jumped over 5 per cent following a RBC Dominion Securities report suggesting it’s a good time to be taken private, Husky Energy Inc. (HSE-T) was up 0.2 per cent on Tuesday.

See also: Oil-patch woes could play in favour of a Husky buyout

Maxar Technologies Inc. (MAXR-T) was up 4.8 per cent announced that its MDA division has been awarded two contracts from the Canadian Space Agency for work on Phase A of the Gateway External Robotic Interfaces project.

“MDA is proud to continue our legacy of working with the Canadian Space Agency and its international partners to design, build and deploy robotic systems in support of space exploration missions,” said Mike Greenley, group president of MDA.

Qualcomm Inc. (QCOM-Q) rose 1.7 per cent after announcing that it has entered into a new five-year patent license agreement with LG Electronics Inc to develop, manufacture and sell 3G, 4G and 5G smartphones.

LGE had said in June it was unable to narrow differences with Qualcomm and renew its chip license agreement.

On the decline

Transat A.T. Inc. (TRZ-T) dipped 0.2 per cent after it issued a statement on Tuesday morning to confirm that it has taken note of Pierre Karl Péladeau’s Monday announcement that he will vote against the arrangement for Air Canada to take over the company and consider making a separate offer with partners if the deal fails.

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“Transat notes that pursuant to this press release, no offer to acquire Transat has been made by Mr. Péladeau or any of his business associates,” the company stated while reiterating its support for the Air Canada offer.

Shares of Air Canada (AC-T) were down 1.1 per cent.

SNC-Lavalin Group Inc. (SNC-T) shares lost 1.4 per cent after the firm’s credit rating was downgraded to junk status by Standard & Poor’s, which cited the potential for the company to lose more money on construction and engineering contracts.

See also: Is ‘cure’ for SNC-Lavalin woes worse than its disease?

Retailer Kohl’s Corp. (KSS-N) dipped 6.9 per cent despite reporting better-than-expected quarterly profit and revenue before the bell on Tuesday and said it expects to benefit from newer partnerships and the expansion of its Amazon returns program in the second half of the year.

Sales at stores open for at least a year fell 2.90 per cent in the second quarter. Analysts on average were expecting a drop of 2.50 per cent, according IBES data from Refinitiv.

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However, the company said that its comparable sales turned positive during the last six weeks of the second quarter with 1-per-cent growth.

“This positive trend has continued into August driven by a successful start to the back-to-school season. We are confident that our upcoming brand launches, program expansions, and increased traffic from the Amazon returns program will incrementally contribute to our performance,” Chief Executive Officer Michelle Gass said.

Shares of Sarepta Therapeutics Inc. (SRPA-Q) plummeted 15.2 per cent on Tuesday after the U.S. health regulator declined to approve the drugmaker’s newest treatment for a muscle-wasting disorder that mainly affects young boys.

The U.S. Food and Drug Administration’s complete response letter (CRL) on Sarepta’s Vyondys 53 cited risks of infection and kidney toxicity.

“We believe the setback can only be described as odd and we cannot help but feel there is more to the CRL than the issues cited,” William Blair analyst Tim Lugo wrote in a client note.

With files from Brenda Bouw, staff and wires

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