TSX Extends Record Run

The S&P/TSX Composite Index edged higher to trade above 36,500, extending its recent record-breaking streak. US CPI inflation eased slightly to 3.4% in July from 3.5%, in line with forecasts. Combined with soft labor market data from July, the in-line inflation reading reinforced expectations that the Fed will refrain from hiking rates, benefiting credit-sensitive North American equities. Meanwhile, the BoC is widely expected to keep interest rates unchanged at its September meeting. Major banks traded higher, with RBC, TD Bank and BMO gaining more than 0.5%, while CIBC and Scotiabank rose nearly 1%. Most miners advanced amid higher gold prices, with Agnico Eagle and Barrick up more than 1.5%. Franco-Nevada fell 3% after missing earnings expectations. Constellation Software tumbled near 7% after revenue came in slightly below forecasts despite an EPS beat. Hydro One gained 2% after reporting higher profit, while Metro fell 2% after reporting weaker adjusted earnings in fiscal Q3.

The S&P/TSX Composite Index futures inched higher on Wednesday amid a fresh batch of corporate earnings reports and July's US inflation data. Constellation Software reported higher second-quarter net income and beat EPS estimates. Franco-Nevada posted second-quarter profit of $354 million and adjusted earnings of $1.81 per share, missing expectations. Markets also awaited quarterly results from Metro, Hydro One and other companies. Headline US inflation eased slightly to 3.4% in July from 3.5% in June, in line with forecasts. Combined with soft labor market data from July, the in-line inflation reading could support expectations for a more dovish Fed, benefiting credit-sensitive North American equities. Meanwhile, the Bank of Canada is widely expected to keep interest rates unchanged at its September meeting.

The S&P/TSX Composite Index edged higher to close at 36,476 on Tuesday, reaching a fresh record slightly above the previous session's high, supported by energy stocks. The energy sector advanced as crude oil prices pared earlier losses after Iran reiterated that it would keep the Strait of Hormuz closed until its demands are met. Canadian Natural gained 0.7%, Suncor rose 0.9%, Imperial Oil added 0.5%, and Cenovus advanced 0.9%. Financials were mixed, with Brookfield Asset Management jumping 4.6% on strong fee revenue growth and a major fundraising effort, while major banks mostly declined. Investors now await Wednesday's US CPI report for fresh clues on the Fed's policy outlook, while strong Canadian labor data from last week kept expectations for a hawkish BoC in focus. Among miners, Franco-Nevada fell 0.2% ahead of its earnings report, while investors continued to digest Barrick's (-2.1%) results. In tech, Shopify shed 1.8% and Constellation Software lost 2.5% ahead of its earnings.