TSX Muted as Earnings Take Focus

The S&P/TSX Composite Index was little changed around 36,000 on Monday after reaching a record high in the previous session, amid uncertainty surrounding US-Iran talks and a fresh batch of corporate earnings. Barrick slumped nearly 9% after reporting second-quarter earnings and revenue below expectations. Franco-Nevada (-1%) and Constellation Software (+2%) are scheduled to report earnings tomorrow. The market is also assessing last week's stronger-than-expected Canadian jobs report, which showed employment rising by 75,100 in July while the unemployment rate fell for the third consecutive month to 6.4%. The resilient labor market could support a more hawkish stance from the Bank of Canada. Meanwhile, oil prices rose as uncertainty persisted over efforts to reopen the Strait of Hormuz, while gold prices edged lower.

Futures tracking the S&P/TSX Composite Index were little changed on Monday after the index reached a record high in the previous session, amid uncertainty surrounding US-Iran talks and a fresh batch of corporate earnings. Barrick traded lower in US pre-market trading after reporting second-quarter earnings and revenue below expectations. Franco-Nevada and Constellation Software are scheduled to report earnings tomorrow. The market is also pricing in last week's stronger-than-expected Canadian jobs report, which showed employment rising by 75,100 in July while the unemployment rate fell for the third consecutive month to 6.4%. The resilient labor market could support a more hawkish stance from the Bank of Canada. Meanwhile, oil prices rose as uncertainty persisted over efforts to reopen the Strait of Hormuz, while gold prices edged lower.

The S&P/TSX Composite Index rose 0.7% to a record close of 36,381 on Friday, led by a rally in mining stocks. Gold prices surged after weaker-than-expected US labor data and lower energy prices reduced expectations of a Federal Reserve rate hike this year. The US economy unexpectedly lost jobs in July, easing concerns that labor market strength could fuel inflation. Agnico Eagle climbed 5.9%, Barrick gained 5%, and WPM jumped 6.6%, while other gold miners advanced between 2.6% and 14%. Tech stocks also benefited from the positive sentiment on Wall Street, with Shopify rising 2.4%. In contrast, financials underperformed after stronger-than-expected Canadian jobs data increased the likelihood that the Bank of Canada could resume tightening if inflation pressures persist. RBC fell 0.7% and TD Bank lost 0.4%.