TSX Fades Thursday
Equities in Canada’s largest centre took some profits Thursday after several days of gains, as consumer and tech stocks took their bruises.
The TSX Composite Index spent the session descending from record highs, docking 159.6 points to conclude Thursday at 27,761.27.
The Canadian dollar was virtually unchanged at 72.77 cents U.S.
U.S. President Donald Trump's higher tariff rates kicked in, with Canada facing a 35% rate after failing to reach a trade agreement ahead of the deadline.
Consumer stocks fared the poorest of the sub-indices Thursday, with Canadian Tire docking $19.30, or 10.6%, to $165.41, while Restaurant Brands International fell $4.86, or 5.2%, to $89.46.
In tech stocks, Computer Modeling Group sank $1.44, or 18.3%, to $6.41, while Docebo ditched $1.45, or 3.5%, to $40.00.
Energy also had a rough time of it, with Canadian Natural Resources backtracking $1.31, or 3%, to $41.81, while Pason Systems handed back 17 cents, or 1.5%, to $11.59.
Gold tried to balance things out, with OceanaGold capturing $2.04, or 10.3%, to $21.84, while Sandstorm Gold pulled ahead 30 cents, or 2.2%, to $13.99.
In other resource stocks, Lundin Mining latched onto $1.49, or 10.5%, to $15.65, while Pan American Silver climbed $2.84, or 7%, to $43.22.
Telecoms also had a good day, with BCE traveling 66 cents, or 2.1%, to $32.66, while Rogers soared 90 cents, or 2%, to $46.29.
Western University’s IVEY School of Business reported its Purchasing Managers Index registered at 55.8 in July, up from 53.3 in June but significantly below the 57.6 level in July 2024.
ON BAYSTREET
The TSX Venture Exchange regained 2.44 points to 789.05.
Eight of the 12 TSX subgroups were in decline by the close Thursday, weighed most by consumer discretionary stocks, lower by 2.3%, while information technology stocks dropped 1.5%, and energy sank 0.9%.
The four gainers were led by gold, shining 1.2% brighter, while materials strengthened 0.8%, and telecoms gathered 0.5%.
ON WALLSTREET
The Dow Jones Industrial Average gave back gains and turned lower on Thursday as investors pocketed some of their profits in what’s been a solid week thus far.
The 30-stock index lost 224.48 points to greet the closing bell Thursday at 43,968.64. The index was bogged down by a 2% decline in Caterpillar shares on the heels of the construction and engineering equipment maker warning of the effects of tariffs on its business.
Salesforce also helped drag down the Dow, as the software sector was particularly weak in afternoon trading. The weakness may be tied to cybersecurity company Fortinet implying in its forecast that a software product refresh cycle would be smaller than anticipated.
Eli Lilly was another big laggard of the session, pulling back about 13% after late-stage trial results of its obesity pill disappointed investors. That’s despite the pharmaceutical giant posting second-quarter results that surpassed Wall Street’s expectations and raising its full-year outlook.
The S&P 500 index dipped 5.06 points to 6,340
The NASDAQ held onto gains of 73.27 points to 20,242.70.
Week to date, the S&P 500 has moved up 1.3%, and the NASDAQ has added 2.4%. The Dow has advanced almost 1%.
Apple also ticked up about 3% after the iPhone maker announced plans to spend an additional $100 billion on U.S. companies and suppliers over the next four years. That’s on top of a $500-billion announcement Apple made in February.
Trump announced late Wednesday that there would be a 100% tariff on imported chips, but not for companies that are “building in the United States.” Nvidia shares rose almost 2%, while Advanced Micro Devices climbed 5%.
Supporting sentiment, recent economic data, including weekly jobless claims, signaled the U.S. economy may still be in solid shape. This comes after July’s weaker-than-expected jobs reading rattled the market last week.
Prices for 10-year Treasury were lower Thursday, raising yields to 4.24% from Wednesday’s 4.23%. Treasury prices and yields move in opposite directions.
Oil prices sank 63 cents to $63.72 U.S. a barrel.
Gold prices surged $32.50 at $3,465.90 U.S. an ounce.
