TSX Futures Edge Higher on Earnings and Lower Oil

Futures tracking Canadian equities edged higher amid a fresh batch of corporate earnings and lower oil prices. Brookfield reported higher second-quarter distributable earnings per share. CCL Industries posted 9.1% sales growth and 10.7% adjusted EPS growth. Pan American Silver reported 38% revenue growth and strong free cash flow, although EPS of $0.73 came in below expectations. Hydro One reported higher profit and EPS of C$0.62, beating forecasts. Metro posted 4.1% sales growth and 8.8% adjusted EPS growth, although same-store food sales remained modest and fiscal third-quarter adjusted earnings were weaker. Meanwhile, oil prices fell on weakening demand prospects. Easing inflationary pressures, following tame US PPI data, supported financials and other credit-sensitive shares, while lower oil and gold prices pressured commodity-related stocks.

The S&P/TSX Composite Index added 0.5% to close at an all-time high of 36,662 on Wednesday, 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 up 1.5% and TD Bank adding 1.7%. Most miners advanced amid higher gold prices, with Agnico Eagle rising 1.8% and Barrick advancing 3%. In contrast, Franco-Nevada fell 1.6% after missing earnings expectations. In tech, Celestica surged 9.2% amid a chipmaker rally in the US. Constellation Software tumbled 4.5% after revenue came in slightly below forecasts despite an EPS beat. Shopify fell 1.2%, tracking weakness in US hyperscalers.

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.