Bay Street Likely To Open On Mixed Note

(RTTNews) - Canadian shares are likely to see a mixed start on Thursday with investors reacting to earnings updates from major banks, and upbeat results from U.S. chipmaker Nvidia.

In Canadian earnings news, Royal Bank of Canada (RY.TO) reported net income of $3.9 billion for the quarter ended July 31, 2023, up $295 million or 8% from the prior year. The bank reported adjusted net income and adjusted EPS of $4.0 billion and $2.84, respectively, both up 11% from the prior year.

Toronto-Dominion Bank (TD.TO) reported adjusted net income $3,731 million for the third quarter, compared with $3,813 million a year ago. The bank also announced that it intends to launch a new issuer bid to repurchase up to 90 million shares, representing around 4.9% of the 1.827 billion shares issued and outstanding as of July 31.

On the economic front, data on Canadian manufacturing sales for the month of July is due at 8:30 AM ET.

U.S. chipmaker NVIDIA Corporation (NVDA) announced after trading hours on Wednesday that its bottom line totaled $6.19 billion, or $2.48 per share. This compares with $0.66 billion, or $0.26 per share, in last year's second quarter. Excluding items, NVIDIA Corporation reported adjusted earnings of $6.74 billion or $2.70 per share for the period.

The Canadian market ended on a firm note on Wednesday, aided by strong gains in technology, materials, financials and real estate stocks.

The benchmark S&P/TSX Composite Index ended with a gain of 188.58 points or 0.96% at 19,879.79, after scaling a low of 19,713.51 and 19,907.28 intraday.

Asian stocks ended mostly higher on Thursday as bond yields retreated from recent highs on the back of August PMI data signaling weaker economic activity in Asia, Europe and the U.S.

Blockbuster earnings and a bullish outlook from Nvidia also offered some support as investors looked ahead to the Federal Reserve's upcoming Jackson Hole symposium.

After opening on a firm note, European stocks are paring gains today, and are currently up marginally. A drop in bond yields, and expectations of a pause in interest rate hikes lifted stock prices earlier in the day.

In commodities, West Texas Intermediate Crude oil futures are down marginally at $78.84 a barrel.

Gold futures are down $5.90 or 0.31% at $1,942.20 an ounce, while Silver futures are down $0.162 0r 0.65% at $24.230 an ounce.