Skip to main content

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

On the rise

Pfizer Inc. (PFE-N) rose after said on Wednesday that final results from the late-stage trial of its COVID-19 vaccine show it was 95-per-cent effective, adding it had the required two-months of safety data and would apply for emergency U.S. authorization within days.

The drugmaker said efficacy of the vaccine developed with German partner BioNTech SE was consistent across age and ethnicity demographics, and that there were no major side effects, a sign that the immunization could be employed broadly around the world.

Efficacy in adults over 65 years, who are at particular risk from the virus, was over 94 per cent.

The final analysis comes just one week after initial results from the trial showed the vaccine was more than 90-per-cent effective. Moderna Inc. (MRNA-Q) on Monday released preliminary data for its vaccine, showing similar effectiveness.

The better-than-expected data from the two vaccines, both developed with new technology known as messenger RNA (mRNA), have raised hopes for an end to a resurgent pandemic that has killed more than 1.3 million people globally and wreaked havoc upon economies and daily life.

Intact Financial Corp. (IFC-T) was up after British insurance group RSA said it is backing a US$9.55-billion cash offer from the Canadian firm and Denmark’s Tryg in one of Europe’s biggest financial takeover bids this year.

Insurers have become an attractive proposition since the coronavirus crisis despite reputational damage from disputes over business interruption claims, industry sources say. Home-working has led to fewer claims on home and motor insurance while commercial insurance rates have risen sharply.

RSA’s directors backed the Intact-Tryg bid unanimously and recommended shareholders vote in favour of the consortium’s offer, the company said on Wednesday, having first flagged the approach early this month.

Best known in Britain for its More Than brand, RSA provides home, motor and commercial insurance and also has large operations in Canada, Ireland and Scandinavia.

See also: Canada’s biggest pension plans to provide $3.2-billion in financing for Intact’s proposed RSA takeover

Target Corp. (TGT-N) saw gains after it blew past Wall Street expectations for quarterly profit and sales on Wednesday as more Americans used the big-box retailer’s quick delivery services to buy everything from electronics to home goods during the COVID-19 pandemic.

Comparable digital sales rose 155 per cent in the third quarter, the company said, driven largely by same-day services like Drive up, Shipt or straight in-store pick ups, with more than 95 per cent of sales being fulfilled through stores.

Target has emerged as one of the big winners from the disruption caused by the coronavirus health crisis as investments in its private label and online business, including faster shipments, have paid off.

“Those investments turned out to be crucial. Without them, we would not have been able to meet the extraordinary demand driven by the pandemic,” Chief Executive Officer Brian Cornell said on a media call.

While people were making fewer trips outdoors, many who did venture out visited Target, raising its store traffic during the quarter. Bigger rival Walmart Inc. (WMT-N) on Monday said it saw foot traffic fall, though U.S. e-commerce sales surged 79 per cent.

“The investments we’ve made in safety and our team are being recognized, and they’re rewarding us even during the pandemic with more and more trips to our stores,” said Mr. Cornell.

The retailer was also winning the loyalty of fresh customers, analysts said.

“It’s clear that Target is not only gaining new customers but also retaining them, which will be critical as we move into 2021,” said Gordon Haskett analyst Chuck Grom.

Comparable sales, which include online and store sales, rose 20.7 per cent in the third quarter ended Oct.31, trouncing expectations for an 11.31-per-cent increase, according to IBES data from Refinitiv.

Target’s net earnings rose to US$1.01-billion, from US$714-million a year earlier. On an adjusted basis, the company earned US$2.79 per share, beating estimates for US$1.60.

Total revenue surged 21.3 per cent to US$22.63-billion, beating estimates for US$20.93-billion.

Target also lifted the suspension of its share buyback program and expects to restart it in 2021.

See also: Does vaccine promise put U.S. consumers in a shopping mood? Retailers may have clues

U.S. discount store operator TJX Cos Inc. (TJX-N) beat estimates for quarterly net sales on Wednesday, boosted by strong demand for home improvement products at its HomeGoods chain during the COVID-19 pandemic.

Framingham, Massachusetts-based TJX’s shares, up about 37 per cent this year, rose on Wednesday.

The retail chain, which also operates Marmaxx stores, has benefited from its diversified product offerings, as people largely staying at home invest in renovating and furnishing their homes even as they spend less on suits and dresses.

U.S. same-store sales at its reopened HomeGoods stores rose 15 per cent, while its other units posted declines.

The company’s net sales fell to US$10.12-billion in the third quarter ended Oct. 31, from US$10.45-billion a year earlier. Analysts on average had expected sales of US$9.36-billion, Refinitiv data showed.

Net income rose to US$866.7-million, or 71 US cents per share, from US$828.3-million, or 68 US cents per share, a year earlier.

Beyond Meat Inc. (BYND-Q) was up in the wake of launching plant-based minced pork in China, as the faux meat maker seeks to tap into the growing demand for its products in the lucrative Asian market.

The company said its latest product, Beyond Pork, will initially be available at five popular restaurants in Shanghai.

China, the world’s top pork consumer, is increasing its focus on food security as the coronavirus outbreak has impacted the supply of meat from international companies.

Beyond Meat said in June it would begin retail sales of its plant-based burger patties in mainland China through Alibaba Group Holding Ltd’s Freshippo markets.

Beyond Meat, whose shares have surged over 60 per cent since their market debut a year ago, has emerged as a top supplier to fast-food chains rushing to get vegetarian products on their menus.

Rival Impossible Foods in October launched its plant-based beef burgers across grocery stores in Hong Kong and Singapore, and is awaiting approval for its products from Chinese regulators.

On the decline

Boeing Co. (BA-N) erased early gains and slid after winning approval on Wednesday from the U.S. Federal Aviation Administration to fly its 737 MAX jet again on Wednesday after fatal crashes halted flights 20 months ago, starting a lengthy process for clearing hundreds of grounded jets as the planemaker faced criticism from victims' families.

U.S. Federal Aviation Administration chief Steve Dickson signed an order lifting the longest jet grounding in commercial aviation history, and the agency released details of the software, system and training upgrades Boeing and airlines must complete before carrying passengers.

The 737 MAX crashes in Indonesia and Ethiopia killed 346 people within five months in 2018 and 2019 and triggered a hailstorm of investigations, frayed U.S. leadership in global aviation and cost Boeing some $20 billion.

“We’ve done everything humanly possible to make sure” these types of crashes do not happen again, Dickson told Reuters, saying he felt “100% confident” in the plane’s safety.

While U.S. airlines can start flying commercially once they complete the FAA’s requirements, including a one-time simulator training session for all MAX pilots, flights elsewhere will depend on approval from other regulators across the globe.

See also: Boeing 737 Max to stay grounded in Canada for now despite FAA clearance in the U.S.

Questions remain over how quickly other regulators, especially in China, will lift their flight bans.

The U.S. planemaker’s best-selling jet will make its comeback facing headwinds from a resurgent coronavirus pandemic, new European trade tariffs and mistrust of one of the most scrutinized brands in aviation.

The 737 MAX is a re-engined upgrade of a jet introduced in the 1960s. Single-aisle jets like the MAX and rival Airbus A320neo are workhorses that dominate global fleets and provide a major source of industry profit.

Metro Inc. (MRU-T) declined with sales and profits growing once more in its fourth quarter, as the COVID-19 pandemic continues to provide an unusual level of growth in the grocery sector.

The Montreal-based retailer reported $4.1-billion in sales for the 12 weeks ended Sept. 26, up 7.4 per cent compared to the same period last year. Same-store sales – an important metric that tracks sales growth not affected by new store openings – rose 10 per cent at its grocery banners in the fourth quarter. That trend has continued. Metro reported on Wednesday that grocery same-store sales have grown 11 per cent in the four weeks since the end of the fourth quarter.

All of Canada’s largest grocers have experienced a surge in sales this year, with public health restrictions deeply affecting the restaurant industry. Many Canadians have restricted outings and are cooking for themselves more at home.

Metro’s net earnings for the fourth quarter were $186.5-million, or 74 cents per share, compared to $167.4-million or 66 cents per share in the same period last year.

- Susan Krashinsky Robertson

Lowe’s Cos Inc. (LOW-N) forecast holiday-quarter earnings largely below analysts' estimates on Wednesday, as the company invests heavily in boosting its online business and doling out employee bonuses during the COVID-19 pandemic.

The home improvement chain’s shares, which have gained over 33 per cent this year on steadfast demand from people upgrading their homes, fell on Wednesday.

To support the demand surge, Lowe’s has had to spend on upgrading supply chains to get products on shelves faster and improve its online shopping features, which have lagged behind its larger rival Home Depot Inc.

Lowe’s has also had to compensate employees working through the health crisis, spending more than US$800-million in COVID-19 related pay and bonuses so far this year.

It expects earnings of US$1.10 to US$1.20 per share in the fourth quarter, compared with analysts' average estimate of US$1.17 per share.

It, however, sees a 15-per-cent to 20-per-cent rise in fourth-quarter same-stores sales, above analysts' average estimate of a 9.6-per-cent increase, according to IBES data from Refinitiv.

Lowe’s also said it expects repurchase of about US$3-billion of stock in the quarter.

Same-store sales rose 30.1 per cent in the third quarter ended Oct. 30, beating analysts' estimates of an 18-per-cent increase. In comparison, larger rival Home Depot Inc reported a 24.1-per-cent gain on Tuesday.

Net earnings fell to US$692-million, or 91 US cents per share, from US$1.05-billion, or US$1.36 per share, as the company incurred a US$1.1-billion pre-tax loss on payment of certain debt.

Excluding items, the company earned US$1.98 per share, marginally missing estimates of US$1.99 per share.

Lundin Mining Corp. (LUN-T) dipped after one of the unions on strike at its Candelaria copper mine in Chile, rejected a contract offer from the company on Tuesday, confirming the work stoppage would continue.

The Candelaria Union rejected the proposal by a vote of 366 to 159, said union head Evelyn Walter.

The company submitted a new proposal last week in a bid to end the strike, which started on Oct. 20.

Another union representing workers at the facility, the Mine Union, went on strike 36 days ago. It rejected a new offer from the company in early November.

Candelaria produced 111,400 tons of copper in 2019.

Apple Inc. (AAPL-Q) closed lower after it said on Wednesday it plans to start a program to lower its App Store commissions for software developers who make US$1-million or less in proceeds each year from the store.

Apple takes a 30-per-cent cut of most purchases made on the App Store, although the commission drops to 15 per cent for subscriptions that remain active for more than a year.

Apple said Wednesday developers will automatically get the lower 15-per-cent rate if they generate US$1-million or less in proceeds - defined as the portion of App Store purchases that the developer keeps - in a calendar year.

Apple’s App Store fees and rules have come under fire from both large software firms such as Microsoft Corp, Spotify Technology SA and Match Group Inc as well as numerous startups and smaller companies that allege the fees deprive consumers of choices and push up the price of apps.

Apple has responded by saying its rules apply evenly to developers and that the App Store provides an easy way to reach its huge base of users without having to set up payment systems in the 175 countries where it operates.

With files from staff and wires

Report an editorial error

Report a technical issue

Editorial code of conduct

Tickers mentioned in this story

Study and track financial data on any traded entity: click to open the full quote page. Data updated as of 27/03/24 4:00pm EDT.

SymbolName% changeLast
PFE-N
Pfizer Inc
+0.69%27.78
MRNA-Q
Moderna Inc
+2.96%110.59
BA-N
Boeing Company
+2.37%191.95
MRU-T
Metro Inc
0%73.13
TGT-N
Target Corp
+1.18%174.67
WMT-N
Walmart Inc
+0.35%60.72
IFC-T
Intact Financial Corp
-0.09%220.49
TJX-N
TJX Companies
+1.79%101.08
LOW-N
Lowe's Companies
+0.76%253.33
BYND-Q
Beyond Meat Inc
+0.85%8.29
AAPL-Q
Apple Inc
+2.12%173.31
LUN-T
Lundin Mining Corp
+2.06%13.4

Follow related authors and topics

Authors and topics you follow will be added to your personal news feed in Following.

Interact with The Globe