TSX Futures Muted as Markets Assess GDP and Earnings

The S&P/TSX Composite Index edged lower to below 35,500 on Friday, weighed down by losses in mining stocks. Gold prices fell amid a sharp rebound for long-term Treasury yields. Agnico Eagle was down more than 3%, while Barrick and WPM lost over 2% each. Software stocks also weakened, with Shopify and Constellation Software down about 0.5%. Meanwhile, Fairfax Financial (-2%) and Cameco (-0.1%) reported revenue above expectations, but both missed EPS forecasts. Enbridge slipped more than 0.5% despite beating estimates for second-quarter adjusted profit, while Imperial Oil fell 2% despite reporting stronger-than-expected quarterly earnings. In contrast, financials advanced, with RBC, TD Bank, and BMO adding about 0.5% each. Meanwhile, a first estimate showed the Canadian economy grew 0.8% in the second quarter, the most in nearly two years, to show some resiliency to inflatonary pressure.

Futures tracking the S&P/TSX Composite Index were little changed on Friday as investors assessed another round of corporate earnings and Canada's May GDP report. Fairfax Financial and Cameco reported revenue above expectations, although both missed EPS forecasts. Enbridge beat estimates for second-quarter adjusted profit. Imperial Oil reported quarterly earnings above expectations as profit doubled on higher crude prices and stronger refining margins. On the data front, Canada's economy expanded 0.3% in May, the second consecutive monthly increase and slightly above forecasts of 0.2%, reinforcing the BoC's view that the economy is adjusting to recent shocks. Meanwhile, gold prices fell as a stronger US dollar weighed on mining stocks. Oil prices extended gains, supporting energy shares but fueling inflation concerns.

The S&P/TSX Composite Index rose 0.5% to close at 35,506 on Thursday, supported by gains in mining and heavyweight financial stocks. Major banks rebounded after Wednesday's selloff, with TD Bank up 2%, Scotiabank rising 1.6%, RBC and BMO gaining 1.4% each, and CIBC adding 1.2%. Gold prices climbed as a weaker US dollar lifted miners. Agnico Eagle jumped 4%, while Barrick gained 3.2%, WPM rose 3.1%, and Franco-Nevada advanced 2.8%. Technology stocks weakened as Lightspeed Commerce tumbled 12.8% after missing first-quarter profit estimates. Shopify fell 5.6% and Constellation Software lost 3.1%, while Celestica surged 6.9%, tracking a rally in US chipmakers. On earnings, Vermilion Energy (+5.6%), Kinross Gold (+1.2%), Cenovus (+4%), Alamos Gold (-1%), and Loblaw (-0.5%) beat expectations, while Ivanhoe Mines (-0.2%) and Tourmaline Oil (-3.3%) missed. Canadian Natural (+1.4%) and Fairfax Financial (-2.1%) report after the close.