TSX Dips as End of Week Nears
Canada's main stock index was subdued on Friday, with gains in utilities offsetting declines in industrials, as investors assessed domestic trade updates and data showing economic resilience.
The TSX Composite Index slipped 46.15 points by noon Friday at 27,340.78.
The Canadian dollar eked higher 0.12 cents at 72.91 cents U.S.
Declines on the day were led by industrial shares falling, with Air Canada dropping 71 cents, or 3.3%, to $20.80.
Canadian Pacific Kansas City retreated $4.18, or 3.8%, to $106.11, and Canadian National Railway dropped $4.49, or 3.2% to $135.51.
On the flip side, utility stocks rose, boosted by Capital Power, up $1.20, or 2%, to $60.33, and Transalta Corp shares adding 44 cents, or 2.6%, to $17.07.
Energy stocks climbed, with Headwater Exploration better by 21 cents, or 3.1%, to $7.10, and Baytex Energy rising eight cents, or 3%, to $2.71.
Among individual stocks, Transalta Corp rose 43 cents, to 2.6%, to $17.01. after brokerage Scotiabank upgraded its rating.
International Trade Minister Maninder Sidhu pointed to interest in advancing trade talks with the South American bloc Mercosur, comprising Brazil, Argentina, Paraguay, and Uruguay, as Ottawa seeks to diversify its trade relations beyond the U.S.
Prime Minister Mark Carney and his team are in talks with U.S. President Donald Trump to reach a trade agreement before the August 1 deadline, when 35% tariffs are set to take effect.
In other trade-related news, Canada and New Zealand reached a "mutually satisfactory" resolution to a long-term dispute over dairy product access, which will allow for better access to the Canadian market, Ottawa said on Thursday.
Trump has previously criticized high Canadian tariffs on dairy products.
Earlier this week, Carney introduced a steel tariff rate quota in a bid to protect the domestic steel industry. China's Commerce Ministry urged
Ottawa on Friday to drop the restrictions while threatening countermeasures.
ON BAYSTREET
The TSX Venture Exchange gained 7.1 points to 798.76.
Nine of the 12 TSX subgroups were lower, with telecoms off 1.3%, industrials descending 1.1%, and consumer discretionary stocks down 0.8%.
The three gainers were consumer staples, better 0.8%, while utilities acquired 0.4%, and energy, up 0.2%.
ON WALLSTREET
The S&P 500 scaled to an all-time high Friday before easing from those levels, as traders pored through the latest earnings reports and new U.S. economic data.
The Dow Jones Industrials stumbled 238.57 points to pause for lunch at 44,245.92. A 3% post-earnings slide in American Express dragged the 30-stock average lower.
The much-broader index slid 7.51 points to 6,289.88.
The NASDAQ Composite capsized 18.72 points to 20,865.93.
Data released Friday reflected a drop in consumers’ fears about tariff-induced inflation down to their lowest levels since February. The University of Michigan’s Survey of Consumers for July reflected overall consumer sentiment rose 1.8% from June to 61.8, coming out exactly in line with the estimate and at the highest level since February.
Major U.S. stock indexes are heading towards a winning week, lifted by data releases pointing to a strong U.S. economy and a slew of better-than-expected corporate earnings results. The S&P 500 is up 0.8% this week, while the NASDAQ has moved up 1.8%, and Dow has advanced 0.2%.
About 60 S&P 500 companies have posted second-quarter results thus far. Of those, 86% have beaten analyst expectations. On Thursday, PepsiCo and United Airlines shares both popped after the respective companies beat analyst estimates on earnings.
Those follow solid results from big banks like JPMorgan and Goldman Sachs earlier in the week.
Shares of Netflix slid 4%, despite posting an earnings beat on Thursday. Shares of 3M were also down slightly even after the company exceeded analysts’ estimates on top and bottom lines.
Prices for the 10-year treasury climbed, pushing yields down to 4.42% from Thursday’s 4.46%. Treasury prices and yields move in opposite directions.
Oil prices lost five cents to $67.49 U.S. a barrel.
Gold prices advanced $13.70 to $3,359 U.S. an ounce.
