North American markets plunge for second day amid U.S. trade war
North American stock markets continued to tumble two days after U.S. President Donald Trump's global tariffs. The Dow Jones Industrial Average had among the biggest drops, shedding more than 2,200 points, in its largest two-day decline since the COVID-19 pandemic. CBC's Anis Heydari walks Hanomansing Tonight through the market falls.
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41 minutes ago
G7: Why there is hope of a Carney-Trump tariff breakthrough at Alberta summit
Global trade will be a major focus at next week's G7 summit as world leaders gather in Alberta, including U.S. President Donald Trump, who will be making his first appearance at a major international event since returning to the White House in January. Experts and ambassadors are expressing some optimism that this type of event could be a difference-maker in convincing Trump to reduce the amount of tariffs charged on imports to the U.S. Any possible concessions on the trade front would be welcomed by countries such as Canada, that are facing economic hardship because of tariffs. It's issue No. 1, said John Kirton, director of the G7 Research Group at the University of Toronto. On Wednesday, CBC News (new window) and Radio-Canada reported (new window) that talks between Prime Minister Mark Carney and Donald Trump are advanced enough that a document containing a draft economic and security agreement has been exchanged between the Prime Minister's Office and the White House. Ottawa is stepping up its efforts in recent weeks to reach an agreement before the end of the G7 summit. Global trade has slowed as a result of the ever-changing tariffs announced by Trump that have targeted various countries and also certain materials, such as steel and aluminum. In response, many countries, including Canada, have enacted their own tariffs. Canada's unemployment rate has climbed to seven per cent, which economists say is a sign the trade war with the U.S. is taking a toll on the job market, especially the manufacturing sector. Trade and tariffs are the make or break issue that will determine whether the summit in the Alberta Rocky Mountain village of Kananaskis Country is a success or not, said Kirton. The G7 leaders' summit is coming to Kananaskis Country, Alta., this month. The region is known for its forests, lakes and mountains. Photo: Radio-Canada / Lyssia Baldini For now, he's hopeful the various leaders' meetings and one-on-one conversations could produce results. [Trump] likes to deliver big wins and the other G7 leaders are smart enough to deliver agreements which are real wins, said Kirton, pointing to how countries could pledge to increase defence spending and make other commitments, in exchange for lower tariffs on imports into the U.S. World leaders, including Carney, Trump and leaders from France, Germany, Italy, Japan and the United Kingdom, as well as the European Union, are meeting in Alberta from June 15 to 17 for talks on a variety of other issues, including climate change and managing rapidly evolving technology. What you need to know about the G7 summit in Alberta (new window) The summit is a high-profile event, yet only involves a handful of world leaders, which is noteworthy, said Gary Mar, CEO of the Canada West Foundation, an Alberta-based think-tank. One of the reasons the G7 is effective is because it's a small group. It's small enough that it's focused and can really be productive, said Mar, who was part of the welcoming party at the Calgary airport when world leaders arrived for the last summit held in Kananaskis in 2002. Trade was not nearly as contentious at that gathering, but rather promoted as having a profound impact on economic growth and development around the world. At the time, U.S. President George Bush even highlighted the value of trade with Canada during the opening press conference. We've got a significant relationship together. It's a vibrant, positive friendship, said Bush. Trade is in the interests of all of us. There are some problems on occasion, but we've got the kind of relationship where we can be very frank about it and try to work them out. The 2002 summit was held less than 12 months after the terrorist attack on the Pentagon and World Trade Center, which is why the main focus was to discuss the war on terrorism and responding to the threat of weapons of mass destruction. Geopolitical tension and conflicts are expected to be one of the talking points at this year's G7, but the tariff situation will likely top the agenda. Trade policy needs to be discussed urgently, said Matthias Lüttenberg, Germany's ambassador to Canada, while on stage at a recent event in Calgary to discuss the G7. Free trade and open markets for Germany is one of the most important pillars of our economic world view and it's the foundation of prosperity and sustainable growth for all of us, he said. The G7 has an important role to play and the summit has value in producing results on global issues, Lüttenberg said, a sentiment shared by other ambassadors attending the G7 event. We know how it works and we have achieved so much together already. And I'm not only talking about leader statements, but it's also the practical work, he explained, pointing to the example of how the G7 agreed on certain sanctions against Russia following its invasion of Ukraine, while also working toward how to help Ukraine rebuild. Global economic growth is slowing more than expected only a few months ago as a result of the Trump administration's trade war, the Organisation for Economic Cooperation and Development said earlier this month. The global economy is on pace to slow from 3.3 per cent last year to 2.9 per cent in 2025 because of the tariff fallout, the agency (new window) said, trimming its estimates from March for growth of 3.1 per cent this year. Kyle Bakx (new window) · CBC News
Globe and Mail
an hour ago
- Globe and Mail
Thinking About Buying Newsmax Stock? Read This First.
Investors in Newsmax (NYSE: NMAX) have quickly learned why initial public offerings (IPOs) are notoriously risky, often experiencing dramatic swings in share price in the first few months of trading. The conservative-leaning media outlet went public on March 31 at an IPO price of $10 per share, skyrocketing 2,550% to a high of $265 by the next day. Those gains proved short-lived as the stock has since crashed to under $15 and is down more than 90% from its recent highs as of this writing. Yet, despite the extreme volatility, Newsmax is generating solid business growth, with a promising long-term outlook. Does the recent sell-off make the stock a compelling buy-the-dip opportunity? Here's what you need to know before rushing out to buy shares of Newsmax. A major media market opportunity Newsmax has emerged as a content juggernaut, capitalizing on a growing appetite for cable news and political commentary across its robust media ecosystem. A focus on traditional family values with an America-first editorial direction has appealed to a large segment of the U.S. population, particularly conservative voters amid Donald Trump's political rise. The company says it now has more than 33 million viewers on its television news channel and a streaming audience numbering 15 million. It also has a broader presence, with online and print publications, radio, and podcasting -- all leveraging its unique brand and loyal following. Newsmax sees a significant opportunity to capture market share from legacy cable news giants such as CNN (a subsidiary of Warner Bros. Discovery) and Fox, which have struggled with ratings in recent years. The company's success from here will be measured by its ability to keep viewers engaged and monetize its expanding reach. Mixed trends to start 2025 The first-quarter update from Newsmax underscored its impressive operating momentum with a record 33.6 million viewers, up 50% from the same period last year, reaffirming its claim as "America's fastest-growing news network." On the other hand, the financial trends are messier. Revenue of $45.3 million increased by 11.5% year over year for the period ended March 31, but marked a deceleration compared to the 26% annual increase for full-year 2024. Even as Newsmax has managed to drive core advertising sales higher while posting growth in its ancillary businesses -- such as subscriptions and affiliate program revenue -- profitability remains elusive. The first-quarter net loss of $17.5 million added to the $72.2 million net loss in 2024. Management cited costs associated with the IPO and expenses related to special coverage of President Trump's inauguration in January. Newsmax ended the quarter with $127 million in cash on its balance sheet, which provides ample near-term liquidity but may require added financing in the coming years to support its expansion strategy. Ultimately, the company has a lot of work to do to achieve consistently positive net income, as financial uncertainties are reflected in a volatile stock price. Reasons for caution Following the breakout year for Newsmax in 2024, leading up to the recent IPO, its main challenge will be maintaining rapid audience growth while navigating a highly competitive media landscape. Historically, election years are a boon for television news coverage and related advertising, which means Newsmax will face tough year-over-year comparisons over the next several quarters. More pressing for investors is the need to reconcile Newsmax's lofty valuation. With a current $1.7 billion market capitalization, shares are trading at a price-to-sales ratio (P/S) of 10.7, representing a large premium to the broader market and its larger media rivals, including Fox at a P/S of 1.4 and Warner Bros. at 0.6. It seems like the market has baked in Newsmax's growth potential far into the future. Investors will need to balance the risk that future results underwhelm, forcing a reset of expectations and opening the door for a deeper sell-off. The big picture for investors With its unique profile, Newsmax is an exciting addition to the stock market and media landscape. Nevertheless, the company still has a lot to prove, and shares may be too expensive to buy with conviction today. I expect the stock to remain under pressure until there are clear signs of an improving earnings trajectory. Investors should be able to find better opportunities with a superior combination of growth and value elsewhere. Should you invest $1,000 in Newsmax right now? Before you buy stock in Newsmax, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Newsmax wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $649,102!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $882,344!* Now, it's worth noting Stock Advisor 's total average return is996% — a market-crushing outperformance compared to174%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025
CTV News
an hour ago
- CTV News
Wall Street drifts lower as Boeing sags and Oracle rallies
NEW YORK — U.S. stocks are drifting lower on Thursday as momentum wanes from their big rally that had brought them to the brink of their record. The S&P 500 was 0.3% lower in early trading. The Dow Jones Industrial Average was down 246 points, or 0.6%, as of 9:35 a.m. Eastern time, and the Nasdaq composite was 0.3% lower. Boeing was one of the main reasons for the Dow's struggles. It lost 5.5% after Air India said a London-bound flight crashed shortly after taking off from Ahmedabad airport Thursday with 242 passengers and crew onboard. The Boeing 787 Dreamliner crashed into a residential area near the airport five minutes after taking off. The cause of the crash wasn't immediately known. In the bond market, Treasury yields eased following another encouraging update on inflation. Thursday's said inflation at the wholesale level wasn't as bad last month as economists expected, and it followed a report on Wednesday saying something similar about the inflation that U.S. consumers are feeling. Wall Street took it as a signal that the Federal Reserve will have more leeway to cut interest rates later this year in order to give the economy a boost. The Federal Reserve has been hesitant to lower interest rates, and it's been on hold so far this year after cutting at the end of last year, because it's been waiting to see how much President Donald Trump's tariffs will hurt the economy and raise inflation. While lower rates can goose the economy by encouraging businesses and households to borrow, they can also accelerate inflation. The yield on the 10-year Treasury fell to 4.36% from 4.41% late Wednesday and from roughly 4.80% early this year. Besides the inflation data, a separate report on jobless claims also helped to weigh on Treasury yields. It said slightly more U.S. workers applied for unemployment benefits last week than economists expected, and the total number remained at the highest level in eight months. On Wall Street, Oracle jumped 9.6% after the tech giant reported stronger profit and revenue for the latest quarter than analysts expected. In stock markets abroad, indexes were mixed across Europe and Asia amid mostly modest movements. Hong Kong's Hang Seng was an outlier, and it tumbled 1.4% to give back some of its strong recent gains. It's still up nearly 20% for the year so far. ___ AP business writers Matt Ott and Elaine Kurtenbach contributed. By Stan Choe
