Stocks Break Even Amid Debt Worries Stateside

Stocks in Toronto somehow found their way upward in choppy trading Thursday, as investors were reeling from the potential passage of a bill south of the border, which could possibly balloon the U.S. national debt.

The TSX Composite Index edged ahead 14.47 points to 25,853.64.

The Canadian dollar was unchanged at 72.12 cents U.S.

The Republican-controlled U.S. House of Representatives passed a sweeping tax and spending bill by a single vote. The bill would enact much of Trump's policy agenda.

If the bill becomes law, it is expected to add about $3.8 trillion over the next decade to the U.S. federal government's current $36.2 trillion debt, according to the nonpartisan Congressional Budget Office.

On Wednesday, federal Finance Minister François-Philippe Champagne said he had a good meeting with U.S. Treasury Secretary Scott Bessent and that both were pleased with the progress they were making. This follows Trump and Prime Minister Mark Carney's agreement earlier this month to initiate serious talks on a new relationship.

Techs led the parade of winners, as Celestica bounced $5.92, or 3.7%, to $164.09, while Dye & Durham captured 28 cents, or 3%, to $9.49.

In financials, TD Bank reported a fall in second-quarter profit, as the Canadian lender stockpiled money to cover for potential bad loans in an uncertain economic environment. TD also announced cuts to 2% of its workforce to cut costs.

Shares in the bank gained $2.81, or 3.2%, to close the session $92.81.

ONEX Corp. shares climbed $1.01, or 1%, to $101.77.

Telecoms also fared well, as Rogers gained 21 cents to $36.09, while Quebecor shares picked up 21 cents to $38.20.

Utilities brought the market down somewhat, as Brookfield Renewable sank $1.59, or 4.8%, to $31.70, while Northland Power ducked 43 cents, or 2.1%, to $20.12.

In resource stocks, G Mining stumbled $1.17, or 5.6%, to $19.60, while SSR Mining gave back 36 cents, or 2.3%, to $15.49.

Torex Gold retreated 80 cents, or 1.8%, to $43.46, while Wesdome Gold slid 22 cents, or 1.2%, to $18.19.

On the economic slate, Statistics Canada reports that, in April, the Industrial Product Price Index declined 0.8% month over month and increased 2.0% year over year.

Meanwhile, the Raw Materials Price Index fell 3.0% month over month and declined 3.6% year over year.

ON BAYSTREET

The TSX Venture Exchange gave back 0.13 points to 678.55.

Seven of the 12 subgroups were going north by the close, with information technology and financials each gaining 0.8%, while telecoms picked up 0.5%.

The five laggards were weighed most by utilities, sinking 0.7%, materials, off 0.6%, and gold, down 0.5%.

ON WALLSTREET

Stocks were little changed on Thursday, as investors tried to shake off fears of rising rates and worries about a ballooning U.S. deficit. The 30-year Treasury yield hit its highest since October 2023 as lawmakers passed a bill that investors fear could worsen the U.S. deficit.

The Dow Jones Industrials eked back 1.35 points to 41,859.09.

The S&P 500 dipped 2.6 points to 5,842.01

The NASDAQ Composite recovered 53.09 points to 18,925.74.

In a party line vote early Thursday, House members approved the bill that includes lower taxes and additional military spending. The bill — which now goes to the Senate — could increase the U.S. government’s debt by trillions and raise the deficit at a time when fears of a flare-up in inflation due to Trump tariffs are already weighing on bond prices and boosting yields. The Congressional Budget Office puts the price tag for bill at nearly $4 trillion.

Long-dated bonds sold off as traders worried a new budget bill would worsen the U.S. deficit. The measure is expected to pass as lawmakers reach a compromise on state and local tax deductions heading into Speaker Mike Johnson’s Memorial Day deadline. Yields spiked even higher after a poor afternoon auction for 20-year debt, raising fears investors may be losing their appetite for funding America’s deficits.

Target shares dropped 5.2% after the big box retailer cut its full-year sales outlook, with executives citing tariff uncertainty and a backlash to the company’s pullback in diversity, equity and inclusion efforts.

Prices for the 10-year Treasury were higher by the close Thursday, lowering yields to 4.54% from Wednesday’s 4.6%. Treasury prices and yields move in opposite directions.

Oil prices lost 69 cents to $60.88 U.S. a barrel.

Prices for gold faded $20.80 to $3,292.70.