TSX Holds Record on Earnings and Lower Oil

The S&P/TSX Composite Index traded near flat above 36,500, holding onto yesterday's record amid a fresh batch of corporate earnings and lower oil prices. Brookfield (+0.5%) reported higher second-quarter distributable earnings per share. Hydro One (+1%) reported higher profit and EPS of C$0.62, beating forecasts. Metro (+1%) 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. CCL Industries (-1.2%) posted 9.1% sales growth and 10.7% adjusted EPS growth. Pan American Silver (-7%) reported 38% revenue growth and strong free cash flow, although EPS of $0.73 came in below expectations. . Meanwhile, oil prices fell on weakening demand prospects. Easing inflationary pressures in the US, following tame PPI data, supported financials and other credit-sensitive shares. RBC and TD Bank added 0.5%, while CICB gained 1%. Miners fell on lower gold prices, with Agnico Eagle down 1.5%.

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.