TSX Holds Near Record High

The S&P/TSX Composite Index was flat at the 36,800 mark on Friday, a record high, amid gains for gold miners. Gold prices rebounded after earlier losses, lending support to mining stocks. Agnico Eagle rose over 2%, while Barrick and WPM added 1.5% each. Meanwhile, financials traded mostly below the flatline as energy-driven inflationary pressures weighed on credit-sensitive shares. The US threatened an indefinite naval blockade on Iran, reviving concerns about disruptions to crude supplies from the region and pushing oil prices higher. On the earnings front, Bird Construction (+3%) beat second-quarter profit estimates. Air Canada (+2%) is likely to post record revenue for September and October, according to a senior executive. Canadian Tire edged up after beating estimates for both EPS and revenue. Onex (-1%) said its second quarter showed progress toward several strategic goals but did not provide EPS figures.

Futures tracking Canadian stocks edged lower on Friday amid heightened uncertainty in the Middle East. The US threatened an indefinite naval blockade of Iran, reviving concerns about disruptions to crude supplies from the region. Oil prices moved higher, fueling inflationary pressures and weighing on financials and other credit-sensitive shares. Meanwhile, gold prices rebounded after earlier losses, lending support to mining stocks. On the earnings front, Bird Construction beat second-quarter profit estimates, prompting at least three brokerages to raise their price targets on the stock. Air Canada’s revenue for September and October is likely to reach records for the two months as more premium travelers avoid the heat and summer crowds in Europe and Japan, according to a senior executive. Canadian Tire beat estimates for both EPS and revenue in the second quarter. Onex said its second quarter showed progress toward several strategic goals.

The S&P/TSX Composite Index added 0.3% to close at 36,759, extending its record-breaking streak amid lower oil prices and soft US producer inflation. 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 added 0.6% and CIBC gained 1.1%. Tech stocks posted gains, tracking a strong session for US chipmakers and hyperscalers. Shopify advanced 5.3%, Constellation Software gained 2.8%, and Celestica added 2.6%. Brookfield (+0.7%) reported higher second-quarter distributable earnings per share. CCL jumped 6.9% after posting 9.1% sales growth and 10.7% adjusted EPS growth. Pan American Silver slumped 9.8% after posting EPS below expectations. Hydro One shed 0.5% despite beating quarterly estimates. Metro lost 0.5% after reporting weaker fiscal third-quarter adjusted earnings.