Stocks lose more ground on fears a recession may be looming

The Canadian Press

Published

6 months ago

8 minute read

NEW YORK (AP) — Good news on the economy remains bad news for Wall Street, as stocks fell sharply Friday on worries a still-strong U.S jobs market may actually make a recession more likely.

The S&P 500 ended 2.8% lower after briefly dropping 3.3% as traders weighed a government report showing employers hired more workers last month than economists expected. The Dow Jones Industrial Average fell 2.1% and the Nasdaq composite lost 3.8%.

Wall Street is worried the Federal Reserve could see that as proof the economy has yet to slow enough to get inflation under control. That could clear the way for the Fed to continue hiking interest rates aggressively, something that risks causing a recession if done too severely.

“The employment situation is still good and that might be a little frustrating to the Fed,” said Brian Jacobsen, senior investment strategist at Allspring Global Investments. “The Fed thinks we need more people unemployed in order to make sure inflation comes down and stays down.”

Stocks have tumbled over 20% from records this year on worries about inflation, interest rates and the possibility of a recession.

The major indexes managed to notch a gain for the week, thanks to a powerful but short-lived rally Monday and Tuesday after some investors squinted hard enough at some weaker-than-expected economic data to suggest the Fed may take it easier on rate hikes. But Friday’s jobs report may have dashed such hopes for a “pivot” by the Fed. It’s a pattern that has been repeated several times this year.

“For for a lot of this a year, there really has been a degree of false optimism among many investors that the Fed would would tap the brakes and pivot sooner than they’ve been telling us they will for quite some time,” Bill Merz, head of capital market research at U.S. Bank Wealth Management.

“The market is increasingly coming to terms with, albeit gradually, that the Fed is highly unlikely to pivot in the near-term as some have been hoping for.”

Employers added 263,000 jobs last month. That’s a slowdown from the hiring pace of 315,000 in July, but it’s still more than the 250,000 that economists expected.

Also discouraging for investors was that the unemployment rate improved partly for the wrong reasons. Among people who aren’t working, fewer than usual are actively looking for jobs. That’s a continuation of a longstanding trend that could keep upward pressure on wages and inflation.

“We are not out of the woods yet, but should be getting closer as the impact of aggressive policy starts to take hold,” said Matt Peron, director of research at Janus Henderson Investors.

By hiking interest rates, the Fed is hoping to slow the economy and jobs market. The plan is to starve inflation of the purchases needed to keep prices rising even further. The Fed has already seen some effects, with higher mortgage rates hurting the housing industry in particular. The risk is that if the Fed goes too far, it could squeeze the economy into a recession. In the meantime, higher rates push down on prices for stocks, cryptocurrencies and other investments.

“Everything hinges on inflation at this point,” said Peter Essele, head of portfolio management for Commonwealth Financial Network. “We do think its going to moderate over the next few quarters.”

Altogether, many investors see Friday’s jobs data keeping the Fed on track to hike its overnight rate by three-quarters of a percentage point next month. It would be the fourth such increase, which is triple the usual amount, and bring the rate up to a range of 3.75% to 4%. It started the year at virtually zero.

Crude oil, meanwhile, had its biggest weekly gain since March. Benchmark U.S. crude jumped 4.7% to settle at $92.64 per barrel Friday. Brent crude, the international standard, rose 3.7% to settle at $97.92.

They’ve shot higher because big oil-producing countries have pledged to cut production in order to keep prices up. That should keep the pressure up on inflation, which is still near a four-decade high but hopefully moderating.

The rise for crude helped stocks of oil-related companies to be among Wall Street’s very few to rise Friday. Oilfield services provider Halliburton climbed 2%.

Stocks of technology companies led the way in the opposite direction. They’ve been among the hardest hit by this year’s rising rates, which most hurt investments seen as the riskiest, most expensive or having to make investors wait the longest for big growth.

Microsoft slumped 5.1%, and Amazon fell 4.8%.

All told, more than 90% of stocks in the S&P 500 closed lower Friday. The index fell 104.86 points to 3,639.66. It ended with a 1.5% gain for the week, its first weekly gain in four weeks.

The Dow dropped 630.15 points to 29,296.79, while the Nasdaq lost 420.91 points to close at 10,652.40.

Smaller company stocks also gave up more ground. The Russell 2000 index fell 50.36 points, or 2.9%, at 1,702.15.

Beyond higher interest rates, analysts say the next hammer to hit stocks could be a potential drop in corporate profits. Companies are contending with high inflation and interest rates eating into their earnings, while the economy slows.

Advanced Micro Devices fell 13.9% after it warned revenue for its latest quarter is likely to come in at $5.6 billion, below its prior forecasted range of $6.5 billion to $6.9 billion. AMD said the market for personal computers weakened significantly during the quarter, hurting its sales.

Levi Strauss fell 11.7% after it cut its financial forecast for its fiscal year. It cited the surging value of the U.S. dollar against other currencies, which weakens the dollar value of sales made abroad, as well as a more cautious outlook on economies across North America and Europe.

Treasury yields rose immediately after the jobs report’s release, though they wobbled a bit afterward. The yield on the 10-year Treasury, which helps set rates for mortgages and other loans, climbed to 3.88% from 3.83% late Thursday.

The two-year yield, which more closely tracks expectations for Fed action, rose to 4.30% from 4.26%. Earlier in the morning, it climbed above 4.33% and was near its highest level since 2007.

___

AP Business Writers Damian J. Troise, Joe McDonald and Matt Ott contributed. Veiga reported from Los Angeles.

Stan Choe And Alex Veiga, The Associated Press

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Alberta Sheriffs receiving additional officers and more powers with new funding

Business / 2 hours ago

Allow unvaccinated Canadians to cross U.S. border, Poilievre asks President Joe Biden

Federal Election 2021 / 3 hours ago

Trudeau says he accepts MP’s choice to leave Liberal caucus amid meddling allegations

Business

Allow unvaccinated Canadians to cross U.S. border, Poilievre asks President Joe Biden

Published on March 24, 2023

The Canadian Press

U.S. President Joe Biden shakes hands with Conservative Party of Canada Leader Pierre Poilievre, as Prime Minister Justin Trudeau looks on, during a welcoming ceremony on Parliament Hill in Ottawa, on Friday, March 24, 2023. Conservative Leader Pierre Poilievre says allowing Canadians who are unvaccinated against COVID-19 to cross into the United States was among issues he raised with President Joe Biden. THE CANADIAN PRESS/Justin Tang

By Stephanie Taylor in Ottawa

Conservative Leader Pierre Poilievre said Friday he asked President Joe Biden to remove the U.S. government’s requirement that Canadians be vaccinated for COVID-19 before crossing the border.

He told reporters after their meeting that American citizens are no longer required to have their shots and Canada allows unvaccinated Americans to visit.

“There are millions of good, decent, honourable people who, through a personal medical decision, are discriminated against at the border,” Poilievre said.

“I encouraged the president to lift those restrictions to allow them freedom of mobility.”

Poilievre won the leadership of his party a little more than six months ago by mounting a vocal opposition to COVID-19 health restrictions, including mask and vaccine mandates, but he has since focused his message on cost-of-living issues.

He met with Biden on Parliament Hill Friday during the president’s 27-hour visit to the Canadian capital, and later shared a photo of the two online.

Michael Ignatieff was the last Opposition leader to have face time with a U.S president. The former Liberal leader met with former President Barack Obama in 2009. It happened at the airport.

Poilievre said Friday he found Biden wants to be a “friendly” and “decent” neighbour to Canada, and on a personal level, he said he told the president they share Irish heritage.

He said they discussed the need for Canada to bolster its defence systems and “bring fairness” to workers by seeing the U.S. exempt Canada from its Buy American policies.

The Tory leader also said he expressed a need for Biden to axe tariffs on Canadian softwood lumber, arguing that the long-standing dispute saw a brief reprieve under Conservative prime minister Stephen Harper.

“I don’t believe that Prime Minister (Justin) Trudeau has pushed and fought on behalf of Canadians,” he said.

Before the meeting, Poilievre had shared some unscripted moments with the leader of the free world.

As he stood in a receiving line of Canadian politicians from all parties who were greeting Biden upon his arrival at Parliament Hill, Poilievre introduced himself as the “Leader of His Majesty’s Loyal Opposition.”

That prompted Biden to question, still shaking Poilievre’s hand: “Loyal opposition?”

Poilievre assured him that yes, “we believe that opposition is an act of loyalty in our system.”

Biden chuckled, patting Poilievre on the arm.

“We do, too, unfortunately,” he said, chuckling.

Later, while addressing the House of Commons, Biden noted that both he and Trudeau appointed cabinets that were half women, making them the first in their respective countries to do so.

Many in the chamber broke out in applause.

Biden noticed that Poilievre and the Opposition Conservatives were not quick to rise, and quipped: “Even if you don’t agree, guys, I’d stand up,” which Poilievre and others then did.

Asked afterwards about that interaction, Poilievre said only: “We support gender equality for all Canadians.”

Poilievre was on the guestlist for a dinner with Biden Friday evening, along with other government ministers, officials and celebrities.

The invitation process came with a dash of partisanship.

Earlier in the day, staff in Poilievre’s office were left scratching their heads when they said it had not received an invite from Trudeau’s office to attend, and asserted that any suggestion he had refused the invitation was false.

The Prime Minister’s Office confirmed it had sent Poilievre notice of the dinner — but the invitation went to a personal email account that notifies senders it is not monitored.

This report by The Canadian Press was first published March 24, 2023.

Alberta

Alberta’s environmental leaders recognized

Published on March 24, 2023

Todayville Edmonton

The Alberta Emerald Foundation (AEF) announced the shortlist for the 32nd Annual Emerald Awards this week. Since 1992, the Emerald Awards have showcased over 350 recipients and 850 finalists who are raising the bar in addressing environmental and climate change issues. These environmental awards celebrate excellence across all sectors, making them unique not only in Alberta but also in Canada.

This year’s shortlist was chosen by a third-party panel of volunteer judges, each bringing expertise from numerous sectors across Alberta. Judges selected the shortlist, consisting of 39 organizations, projects, and individuals from across the province, from 51 nominations. During their deliberations, the judges also determined who from the shortlist will take home an Emerald Award in each of the 15 award categories.

“Those represented in this year’s shortlist demonstrate the incredible dedication that Albertans have toward protecting our environment and taking action against climate change” says The AEF’s Executive Director, Marisa Orfei, “The diversity in the shortlist is also astounding, there’s small grassroots organizations, large corporations, and everything in between. We’re also incredibly proud to have 17 communities across Alberta represented in this year’s shortlist, including Drayton Valley, Grande Cache, Canmore, and many more.”

Here are the organizations, projects, and individuals recognized in The 32nd Annual Emerald Award shortlist:

Air Category – Recognizing projects and initiatives that improve air quality.

Blindman Brewing First-in-Canada CO2 Capture and Utilization (Lacombe, AB)

Business Category – Showcasing an organization engaged in commercial, industrial or professional activities that have demonstrated a meaningful commitment to an environmentally sustainable future.

Reimagine Architects – 26 Years Building Sustainable Futures (Edmonton, AB)
Eco-Flex Recycled Rubber Solutions (Legal, AB)
Envirotech Geothermal – Alberta’s smartest way to Net Zero! (Sherwood Park, AB)

Community Group or Nonprofit Category – Recognizing associations dedicated to furthering a particular social cause or advocating for a shared point of view that has demonstrated a significant commitment to the environment through their actions.

Alberta Bike Swap – supporting the circular economy before it was cool (Calgary, AB)
Project Forest: Rewilding Canada, One Forest at a time (Edmonton, AB)
Alberta businesses are building a better Business-as-usual with Green Economy Canada (Edmonton, AB & Calgary, AB)

Education Category – Acknowledging those that have raised the bar by showing leadership and creativity in educating students of all ages about environmental matters.

Eagle Point-Blue Rapids Parks Council Environmental & Outdoor Education Program (Drayton Valley, AB)
Future Energy Systems: Exploring Our Energy Future With The Community, Our Students, And More (Edmonton, AB)
Evergreen Theatre: A 32-Year Legacy of Inspiring Environmental Awareness & Action Through the Arts (Calgary, AB)

Energy Category – Recognizing projects and initiatives that positively support the evolution of our province’s energy systems.

Calgary’s Residential Solar Calculator (Calgary, AB)
Bow Valley Green Energy Cooperative, empowering community to transform Alberta’s energy (Canmore, AB)
Metis Nation of Alberta Climate Change Action Plan (Edmonton, AB)

Government Category – Recognizing all levels of government whose ongoing commitment sets the example of environmental leadership and advocates sustainability as a major consideration in governance.

Environmental Achievements of the City of St. Albert (St. Albert, AB)
Violet Grove’s Constructed Floating Wetlands System with Aeration (Drayton Valley, AB)
Nose Creek Watershed Partnership – Celebrating 25-Years of Watershed Planning, Policy and Action (Mossleigh, AB)

Infrastructure Category – Recognizing environmental advancements in the ways we design, build, and travel.

Solar Aquatic Systems Wastewater Treatment (Drayton Valley, AB)
SSRIA: Transforming the AEC Industry Towards a Net Zero Built Environment (Edmonton, AB)
Ecoplast Solutions: Building Houses from Recycled Plastic Bottles (Lloydminster, AB)

Land Category – Recognizing projects and initiatives that demonstrate excellence in sustainable land use.

The City of Calgary’s Willow Plantation for Marginal Land Improvement and Carbon Capture (Calgary, AB)
Ledcor Highway Maintenance Yard Upgrades (Edmonton, AB)

Lifetime Achievement Award – Celebrating environmental leaders who, throughout their lifetime, have made contributions of outstanding environmental significance.

Dirk and Nanja of The Barrelman Inc.: 25 years of protecting land and water through local action that inspires (Calgary, AB)

Public Engagement & Outreach Category – Recognizing programs and initiatives that educate and empower the broader public by teaching the necessary skills to make informed environmental decisions and take responsible action.

GreenLearning’s Eco 360 program: Transitioning to a circular economy for plastic waste! (Drayton Valley, AB)
My Green Closet: Sustainable Lifestyle and Slow Fashion Platform (Edmonton, AB)
Calgary Climate Symposium: How The City of Calgary Engages and Educates Albertans on Climate Change (Calgary, AB)

Shared Footprints Award – Recognizing those who have exemplified land and water stewardship, built shared knowledge, improved air quality, reduced land disturbances, and encouraged ecotourism.

Edmonton River Valley Conservation Coalition: Working Together to Protect the North Saskatchewan River Valley (Edmonton, AB)
Highfield Regenerative Farm (Calgary, AB) Waste Management Category – Recognizing projects and initiatives that innovate the repurposing, reduction, and disposal of waste in an environmentally-conscious way. Earth Warrior (Edmonton, AB)
Revolutionizing Recycling with [Re] Waste: Transforming Waste Management for a Sustainable Future (Edmonton, AB)
Microgreens Club – A Zero Waste Initiative (Calgary, AB)

Water Category – Recognizing projects and initiatives that demonstrate excellence through the monitoring, management and/or stewardship of water and watersheds.

Forest industry collaboration cultivates sustainability around vital wetland ecosystems (Edmonton, AB)
LakeKeepers: Community-Based Monitoring of Alberta’s Lakes (Edmonton, AB)
Safe water and water sustainability in Alberta (Calgary, AB)

Wildlife & Biodiversity Category – Recognizing projects and initiatives that protect and conserve natural habitats and wild species.

Aseniwuche Winewak Nation’s Caribou Patrol Program: 11 years of saving Alberta’s caribou (Grande Cache, AB)
Friends of Fish Creek Provincial Park Society – Sikome Beaver Coexistence Project. (Calgary, AB)
The Edmonton Urban Coyote Project: Collaborative Research and Education for Coexistence with Wildlife (Edmonton, AB)

Youth Category – Recognizing people, 25 years of age and under, who have made meaningful contributions and have taken positive action to improve the environmental health of their community.

Monica Figueroa: Edmonton youth climate activist (Edmonton, AB)
Strathmore High School Community Greenhouse (Strathmore, AB)
Energy & Environmental Sustainability Projects in Action at New Myrnam School (Myrnam, AB)

The recipients in each category will be named at the 32nd Annual Emerald Awards ceremony on June 7, 2023, at the Citadel Theatre in Edmonton, Alberta. Emerald Award Recipients receive:

A $2,000 grant to support their work or to donate to an environmental charity of their choice
A profile of their work through The AEF’s Sharing Stories program, which includes the Emerald Documentary Series, What On EARTH Can We Do? podcast, and Emerald Speakers Series
A certificate and Emerald Awards recipient digital logo to commemorate their achievement

The Awards will also be live-streamed through the AEF”s YouTube Chanel to allow people from across the province to attend. Tickets for the 32nd Annual Emerald Awards ceremony can be purchased here.

The Alberta Emerald Foundation (AEF) is a registered Canadian charity with the unique mission to tell Alberta’s environmental good news stories to uplift, educate, and inspire our province toward meeting environmental and climate change goals.

Research suggests that when we learn about what real environmental and climate change solutions look like and how they’re being implemented in our communities, it increases our ability and desire to take action in our own lives. By providing real-life examples of these solutions through our various storytelling programs, the AEF helps Albertans take the next step toward environmental protection and climate action. With every person that we reach through our programming, we’re helping Alberta reach its broader environmental and climate change goals.

Click to learn more about the Alberta Emerald Foundation.