HEADLINES
Unemployment Rate Unexpectedly Dropped to 6.6% in May
Canada's job market jolted back to life last month with a surprise surge in hiring, a positive signal for the economy after a weak start to the year.
Employers in the country added 87,800 jobs in May, helping drive the unemployment rate down 0.3 percentage point to 6.6%, the lowest in four months, Statistics Canada said.
The job gains were much stronger than about 10,000 economists expected, and marked the strongest single month since the start of 2024. This rolled back a sizable chunk of the more than 112,000 jobs lost between January and April, which had pushed the unemployment rate to its highest in six months.
Report Underscores Volatility Worries Over Data Collection What a Difference One Month Makes
Lululemon Cuts Outlook as Headwinds Mount
Lululemon Athletica cut its outlook for the year, citing fresh challenges, including a spike in negative commentary around the brand and a lackluster response to new products.
Shares declined 8.6% to settle at $114.23 on the Nasdaq composite.
The headwinds derailed what the athleisure company said were some budding signs of positive traction in the fiscal first quarter as it worked to improve results in North America, its largest market.
Lululemon said it has been dealing with a bout of new hurdles more recently, with sales trends worsening. It forecast a sales decline for the second quarter, and now expects sales for the year to be down as much as 1%, compared with its prior forecast for growth of 2% to 4%. It also cut its profit outlook.
Situation Is Increasingly Concerning, Oppenheimer Says There's No Obvious, Near-Term Fix Analysts Question Whether Lululemon Cut its Guidance Enough
TRX Gold Output Jumps, Guidance Reaffirmed as Expansion Plans Progress
TRX Gold's output rose in the third quarter thanks to higher processing volumes, while also advancing its major plant expansion aimed at boosting future production.
The Toronto-based miner said that it processed 25% more than a year ago at 1,833 metric tons a day. This drove gold production to rise 58% to 7,426 ounces, bringing its year-to-date total to 21,476 ounces.
TRX said at the current rate, the company is on track to meet its full-year guidance of 25,000 to 30,000 ounces.
TerraVest Shares Sink as Company Reviews Allegations Relating to Chairman
TerraVest Industries' shares slumped after the industrial company said its board was reviewing allegations that have been made relating to its executive chairman, Charles Pellerin.
The stock plummetted 31.6%, settling at C$108.40.
The company in a brief statement said it had learned certain allegations pertaining to Pellerin following the publication of a news article. The contents of the article weren't mentioned, and it wasn't immediately clear where it was published.
Orla Mining Restarts Camino Rojo Operations as Worker-Led Stoppage Ends
Orla Mining said operations have resumed at its Camino Rojo mine in Mexico after a worker-led stoppage has come to an end.
The miner said that operations have restarted at the mine, while dialogue continues between management, employees and the union.
Operations at the Camino Rojo mine in Zacatecas had been halted since the start of the month over a dispute regarding a worker productivity bonus and a profit-sharing entitlement. Orla said Friday that the dialogue also includes bonus negotiations.
Orla said that its 2026 gold production outlook for the mine remains unchanged at 110,000 to 120,000 ounces.
CAE Renews Buyback Program for 5% of Public Float
CAE intends to renew its share repurchase program to buy back up to 5% of its issued and outstanding common shares over a one-year period.
The Canadian aerospace and defense technology company, which provides simulation, training, and critical operations solutions, said Friday that the Toronto Stock Exchange has approved its plan to buy back up to 16 million shares.
Shares added 0.5% to end at C$35.54.
Trulieve Cannabis to Debut on NYSE After Restructuring, U.S. Marijuana Reclassification
Trulieve Cannabis received regulatory approval to list its shares on the New York Stock Exchange, becoming the first cannabis company cleared to trade on a major U.S. stock exchange.
The medical cannabis company, which is currently listed on the Canadian Securities Exchange, said that the move was possible thanks to the reclassification of medical marijuana to Schedule III in April.
Trulieve said that the final order rescheduled state licensed medical cannabis products and created a pathway for Drug Enforcement Administration registration for state licensed medical marijuana businesses.
Sunwing Vacations Stops Cuba Flights as Economic Strains Mount on Island
Sunwing Vacations Group is pulling out of Cuba as the WestJet-owned tour operator cites deteriorating operating environment on the island.
The vacation division of WestJet said that it would suspend indefinitely all Cuba operations following an internal review, a move that brings the tour business in line with the broader WestJet Group, including WestJet Airlines and WestJet cargo.
Sunwing didn't specify the triggers behind the decision, but it comes as the island faces deepening economic and infrastructure challenges, such as fuel shortages, power outages and strained tourism services.
The unit said customers with existing bookings would be offered rebooking options or full refunds. WestJet is owned by Canadian private-equity firm Onex.
TALKING POINT
Economic Arbiter Declares No Recession Despite Two Straight Negative Quarters
By Paul Vieira
OTTAWA--Despite two straight quarters of economic contractions, conditions in Canada have yet to meet the thresholds to declare a recession, says a Toronto think tank.
The C.D. Howe's Business-Cycle Council is widely viewed in Canada as the official arbiter for declaring a recession, a role akin to the National Bureau of Economic Research in the U.S. On Friday, the council said it was premature to describe the present downturn as a recession.
Canada's gross domestic product unexpectedly fell in the first quarter, by 0.1% annualized, missing Bank of Canada expectations for a 1.5% gain. In the prior quarter, economic output declined 1%. The two straight quarters of contraction led some commentators to say this marked a so-called technical recession, while Prime Minister Mark Carney's main political opponent, Conservative Leader Pierre Poilievre, said the country was in a "full-blown recession" and the prime minister was to blame.
The C.D. Howe council disagreed, adding it doesn't accept the concept of a technical recession, or when there are two straight quarters of negative growth.
It said the drop in back-to-back quarters amounted to a decline in GDP of 0.28% on a nonannualized basis, or "of very low amplitude compared" with modern-day recessions. GDP is down 0.05% over the last four quarters, it added, falling short of the council's threshold for a "profound" downturn in activity.
In addition, the council said the criterion for "pervasive" economic disruption hadn't been met, as output rose in more than half of the sectors in each of the first three months of 2026.
"For all these reasons, the council judges that it is too early to conclude that the Canadian economy is in recession," it said.
Carney this week acknowledged there are pockets of weakness in the economy, but he attributed this to some of the policies his government is implementing to reshape an economy that was struggling before he took office. He added that Ottawa's efforts to sharply slow down immigration growth have also weighed on aggregate activity.
Most economists had leaned toward the no-recession call prior to C.D. Howe's statement on Friday. Statistics Canada said an early estimate for GDP in April indicates a rebound from the prior month of 0.4%. And fixed-income traders scaled back their expectations for Bank of Canada interest-rate hikes following the release of the first-quarter GDP data last week.
The Bank of Canada issues its next rate-policy decision this coming Wednesday.
Write to Paul Vieira at [paul.vieira@wsj.com]
Expected Major Events for Monday
04:30/JPN: May Corporate Insolvencies
05:00/JPN: May Economy Watchers Survey
06:00/GER: Apr Manufacturing orders
06:00/GER: Apr Manufacturing turnover
14:00/US: May Employment Trends Index
14:00/US: 1Q Quarterly Financial Report - Industry
14:00/US: 1Q Quarterly Financial Report - Retail Trade
23:01/UK: May BRC-KPMG Retail Sales Monitor
23:50/JPN: May Money Stock, Broadly-defined Liquidity
All times in GMT. Powered by Onclusive and Dow Jones.
Expected Earnings for Monday
Aberdeen International Inc (AAB.T,AABVF) is expected to report for 1Q.
AstroNova Inc (ALOT) is expected to report for 1Q.
Campbell's Co $(CPB)$ is expected to report $0.48 for 3Q.
Comtech Telecommunications Corp $(CMTL)$ is expected to report $-0.54 for 3Q.
Duluth Holdings Inc (DLTH) is expected to report $-0.45 for 1Q.
FuelCell Energy Inc $(FCEL)$ is expected to report for 2Q.
Graham Corp (GHM) is expected to report $0.29 for 4Q.
Lyra Therapeutics Inc $(LYRA)$ is expected to report for 1Q.
Mama's Creations Inc $(MAMA)$ is expected to report $0.03 for 1Q.
Mission Produce Inc (AVO) is expected to report $0.02 for 2Q.
Motorcar Parts of America Inc (MPAA) is expected to report $0.16 for 4Q.
Oil-Dri Corp of America $(ODC)$ is expected to report for 3Q.
Optical Cable Corp $(OCC)$ is expected to report for 2Q.
Vail Resorts Inc (MTN) is expected to report $8.96 for 3Q.
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June 05, 2026 16:29 ET (20:29 GMT)
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