TSX and S&P 500 close at record highs; Lululemon, Broadcom and Costco post-market movers on earnings

12/11/25 16:52

TSX hits another record high as gold, copper prices climb

- Reuters

Canada’s main stock index rose on Thursday to another record high as metal prices increased and investors cheered upbeat domestic economic data.

The S&P/TSX Composite Index ended up 169.88 points, or 0.5%, at 31,660.73, surpassing its record closing high on Wednesday.

“Incremental data that’s been coming in for the Canadian economy recently has been quite positive, and that’s helping this leg of the rally,” said Elvis Picardo, a senior portfolio manager at Luft Financial, iA Private Wealth. “It shows that despite all the doom and gloom about the impact of tariffs the economy is weathering the storm quite nicely.”

Canada posted a monthly international trade surplus in September, reversing a trend of seven consecutive months of deficits. On Wednesday, Bank of Canada Governor Tiff Macklem said the economy was proving resilient overall to the effect of U.S. trade measures, as the central bank left its benchmark interest rate on hold at 2.25%.

The TSX is also “benefiting from the perception that it’s a diversified play, and if I look at year-to-date performance, it’s spread across the four big groups that make up much of the index, unlike in the U.S., where the advance seems to be much more concentrated in tech,” Picardo said.

Financials, energy, technology and materials, which account for 77% of the TSX’s market capitalization, have all notched gains since the start of 2025. The materials group rose 3.1% on Thursday, and has nearly doubled on a year-to-date basis, as gold and copper prices climbed.

On Thursday, industrials added 0.5% and financials ended 0.4% higher. Shares of TerraVest Industries Inc jumped 22.3% after the home heating products company reported fourth-quarter results.

Still, the energy sector ended 0.7% lower as the price of oil settled down 1.5% at US$57.60 a barrel.

12/11/25 16:37

Costco beats quarterly sales estimates on strong demand

- Reuters

Costco Wholesale (COST-Q) beat Wall Street estimates for first-quarter revenue on Thursday, on the back of resilient demand from consumers across income groups amid rising economic uncertainty.

Surging inflation and a weak job market have been pushing shoppers to trade down and hunt for bargains on everything from essentials such as groceries to nice-to-have items like jewelry. This in turn has helped boost sales at retailers including Costco and Walmart as well as dollar stores.

The company posted quarterly revenue of $67.31 billion, compared with analysts’ estimate of $67.14 billion as per data compiled by LSEG.

Shares of the company were down about 1% after the bell. The stock has fallen about 3% so far this year.

12/11/25 16:22

Broadcom forecasts upbeat quarterly revenue on strong AI chip demand

- Reuters

Broadcom (AVGO-Q) on Thursday projected first-quarter revenue above Wall Street estimates, betting that sustained, robust demand for its specialized artificial intelligence chips would power another year of growth and help quell investor worries of a spending slowdown.

Shares of the Palo Alto, California-based company rose 2.8% in extended trading.

Broadcom has emerged as a major beneficiary of the technology industry’s rush to build out AI capabilities. The company supplies high-speed networking chips, such as its Tomahawk and Jericho series, that are critical for moving vast amounts of data within AI data centers.

The company forecast revenue of about $19.1 billion for the quarter, compared with analysts’ average estimate of $18.27 billion, according to data compiled by LSEG.

12/11/25 16:10

Lululemon Athletica CEO to step down in January, shares jump

- Reuters

Lululemon Athletica (LULU-Q) said late Thursday that its Chief Executive Officer Calvin McDonald will step down from the top job effective January 31, after about seven years at the helm. The company is searching for its new CEO, it added.

The company also raised its annual revenue and profit forecasts betting on a recovery in demand for its new sportswear launches in the United States.

Lululemon’s shares were up nearly 5% in extended trading after it also approved a $1.0 billion increase to its share repurchase program.

The yogawear retailer now expects annual revenue between $10.962 billion and $11.047 billion, compared with its prior forecast of $10.85 billion to $11 billion.

Lululemon now expects annual profit between $12.92 and $13.02 per share, compared with previous expectations of $12.77 to $12.97 apiece.

Read more here from the Globe’s Susan Krashinsky Robertson

12/11/25 16:02

Dow and S&P 500 close at record highs as Oracle drags on Nasdaq

- Reuters

The S&P 500 and the Dow boasted record closing highs on Thursday as investors favoured financial stocks after a Federal Reserve policy update that was less hawkish than expected while the tech-heavy Nasdaq Composite underperformed as Oracle’s financial update made investors wary of artificial intelligence bets.

Oracle shares tumbled after the company’s quarterly forecasts fell short of analysts’ estimates and it warned that annual spending would run US$15 billion higher than previously planned, stoking fears that its big push into AI cloud computing was burning cash. The cost of insuring Oracle debt against default surged as investors fear that Oracle’s heavy reliance on debt financing could fuel an AI bubble similar to the dotcom bust of the early 2000s.

While this helped drag other technology names lower, the Dow rallied along with the Russell 2000 small-cap index and the S&P 500 value index outperformed the growth index during Thursday’s trading session.

“The name of the game is market rotation. We’re seeing small caps, the Dow and cyclicals all start to do better in anticipation of a reacceleration of global growth,” said Matthew Miskin, co-chief investment strategist at Manulife John Hancock Investments.

Investors also continued to digest the U.S. central bank’s update from Wednesday, when the Fed lowered borrowing costs by 25 basis points and Chair Jerome Powell signaled a pause on further easing. However, investors were relieved that the Fed still had two rate cuts on its dot plot as it balanced still-elevated inflation with signs of labor market weakness.

According to preliminary data, the S&P 500 gained 14.34 points, or 0.21%, to end at 6,902.19 points, while the Nasdaq Composite lost 60.30 points, or 0.25%, to 23,597.26. The Dow Jones Industrial Average rose 651.37 points, or 1.36%, to 48,709.12.

12/11/25 12:40

Canadian dollar climbs and even Rosenberg is now a bull

- Darcy Keith

The Canadian dollar is on a two-day winning streak, up again today and up more than half a cent US since early Wednesday. Greenback weakness is key here, as it usually is – with the Fed cutting rates and leaving the door open to further easing a key development. But today’s surprise Canadian trade surplus for September – a signal the domestic economy is weathering the trade storm reasonably well – is helping too.

All this is music to the ears of economist David Rosenberg, who at the start of this week made a significant change in his call for the Canadian dollar. A longtime bear on the loonie and the Canadian economy, Mr. Rosenberg told his clients Monday that recent trends have combined to make him bullish on the Canadian currency - and not in a subtle way. He now has a revised target of C$1.30 (77 cents US) for the loonie for 2026, and thinks this might even prove conservative.

He raised three key points for the revised call: With Canadian inflation still sticky, the BoC easing cycle could be over at a time the Fed is likely to make additional cuts. Upward revisions to Canadian GDP suggest a smaller output gap, and productivity growth is now supporting a stronger loonie. And with fiscal and regulatory policy turning more supportive, the long-term growth outlook is brighter.

Mr. Rosenberg also thinks Canadians – specifically those participating in the ‘elbows up’ movement - can take some of the credit here for supporting their own currency.

“There is this perception among the Canadian public that we have been tarred and feathered, and so while Mark Carney dropped his elbows on his reciprocal moves, domestic residents have taken matters into their own hands. Canadians have become economic vigilantes — to the benefit of the local economy. The “buy Canada” campaign is ongoing, and more tangibly, the “staycation” theme has resulted in a -22% year-over-year plunge in Canadian trips to the U.S., and a coincident double-digit growth boom in the domestic travel and tourism industry. When you look at this “staycation” theme holistically, as in all the multiplier effects that include retailers, restaurants, and hotels, this domestic travel thrust touches 4.5 million workers (20% of employment) and C$100 billion of GDP (a near-5% chunk — as big as the resource patch). And this is bullish for the loonie because what it means is that more dollars are being spent at home instead of being converted into greenbacks for the trips Canadians used to make to Palm Beach, Vegas, Scottsdale, and Manhattan — to such an extent that the travel account as part of the overall balance of payments, historically in a large deficit position, has now swung to a record of over C$10 billion at an annual rate,” Mr. Rosenberg told clients.

12/11/25 11:58

A sell-off for Oracle weighs on Wall Street even as the Dow jumps 465 points

- The Associated Press

Most U.S. stocks are rising on Thursday, but a sell-off for Oracle is weighing on Wall Street as investors question whether its big spending on artificial-intelligence technology will pay off.

The S&P 500 fell 0.4 per cent and pulled further from its all-time high, which was set in October. Drops for AI-related stocks dragged the Nasdaq composite down 1.2 per cent, while the Dow Jones Industrial Average was doing much better with a gain of 465 points, or 1 per cent, as of 11:30 a.m. Eastern time.

Oracle tumbled 14.4 per cent and had briefly been on track for its worst day since 2001, when the dot-com bubble was still deflating. It reported 14% growth in revenue for the latest quarter, which came up just short of analysts’ expectations, even though its profit topped forecasts.

Doubts remain about whether all the spending that Oracle is doing on AI technology will produce the payoff of increased profits and productivity that proponents are promising. Analysts said they were surprised by how much Oracle may spend on AI investments this fiscal year, and questions continue about how the company will pay for it.

Such doubts are weighing on the AI industry broadly, even as many billions of dollars continue to flow in. Those questions had helped drag the broad U.S. stock market through some sharp and scary swings last month.

Nvidia, the chip company that’s become the poster child of the AI boom and is raking in close to US$20-billion each month, fell 3.6 per cent Thursday. It was the single heaviest weight on the S&P 500.

12/11/25 11:18

‘Compelling opportunity to own one of the best businesses in the world’

- Scott Barlow

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BofA Securities upgraded Visa Inc. (V-N) to a “buy” recommendation from “neutral” on Thursday, sending its shares higher.

“Following recent underperformance, we believe Visa shares offer very attractive return potential, and we are upgrading to Buy from Neutral,” analyst Mihir Bhatia said.

“We view stablecoins as an opportunity, regulatory/litigation risks as manageable, and Visa as a premier business. Current valuation is close to a 10yr trough driven by overblown disruption concerns and a rotation into AI/risk-on stocks, in our view. We think this presents a compelling opportunity to own one of the best businesses in the world at a reasonable multiple”

12/11/25 11:08

Mining stocks lead TSX to another record high

- Reuters

Canada’s main stock index rose on Thursday, as gains in mining shares outweighed a tech selloff sparked by renewed fears about lofty valuations.

Toronto’s benchmark index hit a new intraday record high, and was up 0.37 per cent, or 119.03 points, at 31,608.88 points at 11:03 a.m. ET.

Gold and mining sub-indexes rose almost 2 per cent each, with both silver and copper prices hitting record highs.

“We’re seeing continued strength in gold and metals. Those commodities tend to be quite buoyed and close to all-time highs. Meanwhile, energy is really selling off,” said Robert Gill, portfolio manager at Fairbank Investment Management.

“It’s this time of year that portfolio managers begin to ... reposition their portfolios so that could lead to some sector rotation or the closing of underperforming positions.”

Consumer discretionary stocks rose 0.6 per cent; shares of Dollarama gained 2.3 per cent after the discount store raised its annual sales forecast, betting on resilient demand for cheaper household supplies and groceries amid still high inflation.

Technology stocks led the selloff, dropping 2 per cent after Oracle’s quarterly results and forecast disappointed investors and revived concerns about an AI bubble.

12/11/25 11:01

Investors give thumbs down to Empire earnings

- Darcy Keith

Clean up in aisle 9! Empire shares (EMP-A-T) are getting clobbered this morning after quarterly results that disappointed.

TD Cowen analyst Michael Van Aelst notes that Empire’s EPS came in a penny below consensus, but suggests that actually masks weaker performance. If a one-time $8 million benefit from a litigation settlement is excluded, earnings were 4 cents below consensus.

Thus, investors aren’t impressed.

“Retail EBITDA, excluding other income, was +1% y/y vs +4% expected — this falls short of Loblaw (+7%) and Metro (+7% excl DC freezer issues),” he detailed in a first look note this morning.

“One solid number was Food same-store sales growth, which came in at +2.5% (roughly in line with our forecast and consensus), above L’s +2.0% and MRU’s +1.6% (or +1.9% excluding the impact from the DC freezer issue). Keep in mind that EMP added UberEats and Instacart partnerships (Ontario in Sep/2024, Western Canada in Dec/2024, and QC and Atlantic in Mar/2025), which drove eComm growth of 81% (vs. L/MRU at 18%/20%) in the quarter and contributed an estimated 185bps to SSSG. This benefit should moderate over the coming quarters and be fully lapped by Q1/F27,” the analyst added.

12/11/25 10:32

8 ways AI is not a bubble

- Scott Barlow

BofA Securities Research Investment Committee (RIC) provided an eight-part FAQ on the extent to which AI is an investment bubble.

1. What are the most important market signals of an investment bubble? BofA has developed a Bubble Risk Indicator after analysis of over 100 years of market data. It includes returns, volatility, momentum and distribution math-related factors like kurtosis. It indicates very little risk of a bubble bursting in the near term.
2. What about the similarities to the 2000 dotcom era? Stock prices now reflect earnings growth which was definitely not the case in the late 1990s. The AI hyperscalers are spending 60 per cent of operating cash flows on capex, far lower than the telecoms 140 per cent during the dot com bubble.
3. What are some risks to AI supply? Power shortages and political pushback are the major near-term risks to the AI investing theme
4. Where is AI translating to real gains for companies? Researchers are reporting more progress using AI relative to non-users. IT providers like ServiceNow are saving 400,000 labour hours annually using AI for customer service. RBC is using AI to prepare client presentations efficiently and Amazon.com’s shopping assistant has been used by 250 million clients
5. Should investors be skeptical about new AI capex? BofA strategists estimate that hyperscalers are now more capital-intensive than major oil companies. Returns are higher in tech but valuations may eventually be affected negatively.
6. How richly valued are the main AI stocks today? Surprisingly Nvidia’s forward PE ratio of 25 times is roughly equal to its long term average. Valuations on average are much lower than early 2000
7. Is there a risk of a credit bubble in AI financing? This is the question that has been interesting me most. The report highlights the exceedingly strong balance sheets of the major tech players but revenues, particularly for companies like Oracle that have really ramped up borrowing, will have to grow quickly.
8. Will new developments support the market? The RIC team mention Google’s Tensor Processing units as an example of development that will increase AI-related investment returns

12/11/25 10:15

Telus shares fall after downgrade

- Darcy Keith

Telus (T-T) investors just can’t catch a break. The stock is sinking today to its lowest levels since 2013 after a downgrade from BMO.

The stock also goes ex-dividend today - which means the stock price is reduced by the amount of the dividend being paid out - all else being equal. Even when that’s factored in, the stock price is still lower.

The Vancouver-based telecom said earlier this month that it is pausing dividend hikes until its share price “reflects growth prospects.” Its dividend yield had spiked above 9 per cent as the share price tanked, and it’s still hovering there today.

BMO analyst Tim Casey today lowered his rating to “market perform” and did a hefty slash to his price target – to $19 from $23. He notes Telus continues to trade at a premium valuation to its incumbent peers, adding “We believe the core telecom business is growing in line with peers and the outlook for TELUS Digital (now wholly-owned) is unclear.”

Meanwhile, he notes that payout ratios remain elevated compared to peers and dividend growth has been paused.

It isn’t all gloom for telecom investors today though. Mr. Casey upgraded BCE (BCE-T), and its shares are rallying. For more details, call up today’s Upgrades and Downgrades report.

12/11/25 09:51

Morgan Stanley analyst expects oil weakness early in 2026

- Scott Barlow

Morgan Stanley energy analyst Devin McDermott published his outlook for 2026 on Thursday, emphasizing weakness for crude in the first half of the year. He sees a better risk-reward scenario in U.S. natural gas.

U.S. crude prices are lower by roughly 20 per cent year-to-date while Henry Hub gas prices are up 25 per cent. Mr. McDermott likes the crude demand outlook for 2027 but expects weakness for the commodity price for at least the first half of 2026. Global oil demand is expected to grow by 0.5 million barrels per day and supply should increase by 0.7 million barrels.

For natural gas the analyst believes supply growth, while strong enough to limit commodity price upside, is not enough to meet future demand. He expects U.S. natural gas futures to increase by 20 per cent.

The excitement surrounding domestic natural gas is dependent on new LNG facilities opening in Kitimat B.C. next year allowing for more exports. Mr. McDermott, however, predicts a global LNG surplus next year that will depress gains.

Of the Canadian companies Mr. McDermott covers, he rates only one as overweight/attractive – Cenovus Energy Inc. (CVE-T).

12/11/25 09:32

North American stock markets open lower on Oracle AI spending jitters

- Reuters

North American stock indexes opened lower on Thursday as fresh worries over Oracle’s hefty AI spending plans overshadow optimism over a less hawkish tone from the U.S. Federal Reserve.

Toronto’s S&P/TSX composite index was down 0.26 per cent at 31,410.44 points, a day after it notched a fresh record high on Wednesday, led by financial and technology shares, as policy decisions from the Bank of Canada and the Federal Reserve met expectations.

In New York, the Dow Jones Industrial Average was up 97.04 points, or 0.21 per cent, to 48,157.04, the S&P 500 lost 29.36 points, or 0.42 per cent, to 6,857.45 and the Nasdaq Composite lost 171.04 points, or 0.71 per cent, to 23,485.26.

Oracle slumped almost 16 per cent in early trading after its quarterly forecast fell short of analysts’ estimates and the company said annual spending would climb US$15-billion compared with its earlier expectation.

Its shares are on track for their biggest quarterly loss since mid-2002 on worries that heavy reliance on debt financing could fuel an AI bubble similar to the dotcom bust of the early 2000s.

“Oracle has been the poster child for volatility and that will continue. The spending itself is stand-alone issue and part of the CapEx is a bit opaque,” said Art Hogan, chief market strategist at B. Riley Wealth.

12/11/25 09:37

Bond bulls beware

- Darcy Keith

Bond portfolios are doing well this morning amid a second straight day of yield declines (bond prices and yields move inversely) – the U.S. 10-year is down about 6 basis points to 4.11 per cent. The Fed’s rate cut on Wednesday and the general market interpretation that it will follow up with more easing in the new year is pressuring yields. So is the Fed announcing it would start buying short-term Treasuries as soon as Friday to support liquidity.

But for those contemplating shifting more money into bonds, expecting more gains to come, this is a must read this morning. Mike Dolan points out that no matter what you think is in store in 2026, it probably won’t be a year of the bond. He notes we’ve seen a general rising of borrowing rates across the globe in recent days as investors increasingly believe that the easing cycle is nigh. They are now trying to price just when the first rate hike of the next cycle will appear on the horizon.

We’re talking global here, but this trend is on full display in Canada, too. Bond traders at the moment are fully pricing in a quarter-point rate hike by the Bank of Canada by the fall of 2026.

Sure, surprises could certainly be in store for 2026 that will change this narrative, like a much weaker-than-expected downturn in the U.S. or global economies, or the bursting of the AI bubble. But as it appears right now, allocating more to bonds next year comes with its own risks. Odds seem pretty good the bond market will yet again disappoint in the new year.

12/11/25 09:25

Scotia strategists reveal four quantitatively-derived trades for 2026

- Scott Barlow

The strategy team at Scotiabank, led by Hugo Ste-Marie, have provided four quantitatively-derived trades for 2026. They expect small-cap stocks to outperform large caps on both sides of the border. In Canada, smaller metal miners are already driving small-cap returns higher relative to large caps.

In the U.S., the team believe that stronger earnings growth will push Russell 2000 performance above the S&P 500.

Mr. Ste-Marie believes U.S. growth at a reasonable price (GARP) stocks will outperform more expensive, AI-exposed companies. Non-tech will be supported by an improving U.S. economy that helps cyclical stocks generate double digit profit growth.

The team’s belief in high-quality domestic stocks was dashed by junior miners of copper, gold and uranium. In 2026, however, they expect quality stocks to outperform. Their list of highest quality stocks begins with Dollarama (DOL-T), Metro (MRU-T), Hydro One (H-T), Loblaw Companies (L-T) and George Weston (WN-T).

12/11/25 08:38

Oil retreats as investor focus returns to Ukraine peace talks

- Reuters

Oil prices eased on Thursday as investors shifted focus back to Russia-Ukraine peace talks and monitored potential fallout from a U.S. seizure of a sanctioned oil tanker off the coast of Venezuela.

Brent crude futures were down 69 US cents, or 1.1 per cent, at $61.52 a barrel at 8:02 a.m. ET, while U.S. West Texas Intermediate crude fell 67 US cents, or 1.2 per cent, to US$57.79 a barrel.

Russian Foreign Minister Sergei Lavrov said on Thursday that a visit to Moscow this month by U.S. envoy Steve Witkoff had resolved misunderstandings between the two countries.

He added that Moscow had handed over Russia’s proposals on collective security guarantees to Washington.

The benchmarks settled higher a day earlier after the U.S. said it seized an oil tanker off the coast of Venezuela, as escalating tensions between the two countries raised concerns about supply disruptions.

12/11/25 08:15

Top Links: RBC analysts’ top picks in dividend-heavy power, utilities and infrastructure sectors

- Scott Barlow

The research team at RBC Capital Markets provided best ideas in the global power, utilities and infrastructure sector,

“We anticipate a supportive environment to continue into 2026 via a combination of positive secular trends that impact existing footprints as well as driving an acceleration in new regulated or long[1]term contracted growth projects. This report provides our views and best stock ideas across multiple geographies (i.e., North America, Europe and Australia) and infrastructure sub-sectors (i.e., regulated utilities, power generation, midstream, clean energy and transport infrastructure). Key themes “All of the above” energy strategies should create broad-based infrastructure opportunities. Growing demand for all forms of energy should provide a tailwind for global energy infrastructure companies. In particular, we believe that companies with established infrastructure footprints and/or regulated monopolies stand to benefit the most by leveraging their asset bases to drive improved profitability as well as capture high-return growth opportunities. Customer affordability remains a key topic.”

The Canadian top picks are Altagas, Brookfield Infrastructure, Capital Power, Brookfield Renewable Partners LP, Northland Power, Keyera Corp. and Pembina Pipeline.

**

Scotiabank strategists Hugo Ste-Marie and Jean-Michel Gauthier listed 10 economic and market themes that they think will dominate 2026,

• U.S. GDP: We See Upside to Consensus. At the time of writing, 2026 U.S. GDP growth consensus stands at 2.0% … Several factors should provide tailwinds to growth, including Fed rate cuts, fiscal support/the One Big Beautiful Bill Act, the AI capex boom, and easy financial conditions, among others.
• Don’t Bet Against U.S. Consumers Yet.
• Make Canada Great Again … the recent budget is a first step toward growing the economy, leveraging natural resources, boosting defence spending, and stimulating productivity.
• AI Broadening – 493 Stocks Poised to Benefit Materially … We think Mag-7 stocks could be more “market performers” next year, and with broader AI adoption, both productivity gains and rising profit margins could be on the menu for many S&P 500 companies next year.
• Big Year Ahead for Small Caps? After five consecutive years of underperformance, we believe macro conditions could be in place for small caps to lead next year.
• LatAm Equities: Underappreciated 2025 Rally Could Keep on Giving in 2026.
• Government Bonds: Unappealing in Absence of a Macro Downturn. Unless economic activity materially disappoints, the outlook for U.S. and Canadian government bonds is unappealing, in our opinion.
• Roaring Commodities … We do not expect these tailwinds [from 2025] to disappear next year.
• Currency Market: Adopting the Non-Consensus View for the CAD … The historical large interest rate differential between the BoC and Fed could almost close, according to Scotiabank Economics, as the Fed eases further, while the BoC could eventually start normalizing its loose monetary policy. That would provide tremendous support for the loonie, in our opinion.
• Quant Trades for 2026: Small, GARP (U.S)., and Value (Canada)”

**

CIBC deputy chief economist Benjamin Tal assessed the implications of “doubling up” on the domestic housing market,

“ Doubling up, in the context of the housing market, is a situation in which extended relations, multiple ‘families”, and unrelated persons, reside within the same dwelling. Doubling up is the most common response to deteriorating housing affordability but also can be seen as shadow demand ready to be utilized in an environment of improved affordability. None of the traditional demand and affordability measures that are used frequently by policymakers incorporate doubling up into the calculation. Census data can be used to estimate the trend and relative size of the doubling up phenomenon. We suggest that an already high rate of doubling up is even higher than currently reflected in the census because of the undercounting of non-permanent residents (NPRs) and the misallocation of students — both groups with a high propensity to double-up. The practical implication here is that with the current improvement in affordability due to falling prices/rent, some of this potential demand might be released due to undoubling and might establish a price floor faster than currently anticipated”

**

Doubling Up – CIBC Economics

Bluesky post of the day

**

Diversion

“The Verge picks the standout tech of 2025” – The Verge

12/11/25 07:32

Dollarama raises annual sales forecast as consumers opt for cheaper alternatives

- Reuters

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Montreal-based Dollarama (DOL-T) raised its annual sales forecast on Thursday, betting on resilient demand for affordable household supplies and groceries amid still high inflation.

Canadian consumers are increasingly seeking discounted alternatives for goods ranging from pantry staples to cleaning supplies as they look to save money, driving strong demand and traffic for dollar-store chains.

Inflation in Canada is expected to be temporarily higher in the near term, even as the economy seems to be broadly resilient to the impact of U.S. trade measures.

The company expects annual comparable sales to grow in the range of 4.2 per cent to 4.7 per cent, compared to previous expectations of a 3-per-cent to 4-per-cent rise.

Dollarama posted net sales of $1.91-billion for the third quarter ended November 2, compared with analysts’ average estimate of $1.87-billion, according to data compiled by LSEG.

The company posted net earnings per share of $1.17 per share. Analysts, on average, expected a profit of $1.10 per share.

• Read more: Dollarama raises annual sales forecast

12/11/25 07:29

Suncor Energy forecasts higher oil, gas production in 2026

- Reuters

Suncor Energy (SU-T) on Thursday forecast higher oil and gas production in 2026 as the Canadian energy producer boosts output from its oil sands assets.

The Calgary-based company expects upstream production between 840,000 and 870,000 barrels per day next year, compared with its 2025 production estimates of 810,000 to 840,000 barrels per day.

Suncor also expects capital expenditure to range between $5.6-billion and $5.8-billion in 2026, down from its forecast of $6.1-billion to $6.3-billion for 2025.

CEO Rich Kruger said the company in December increased share buybacks by 10 per cent to $275-million per month, pointing toward a projected $3.3-billion of repurchases in 2026.

12/11/25 06:33

Oracle shares tumble as gloomy forecasts, higher capex reignite AI bubble concerns

- Reuters

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Oracle (ORCL-N) shares slumped nearly 11 per cent in premarket trading on Thursday after downbeat forecasts and higher capex fanned worries that its massive AI investments are taking longer than expected to pay off.

Executives warned that capital expenditures for fiscal 2026 are now expected to be US$15-billion higher than the US$35-billion the company estimated in September during its first-quarter earnings call.

Oracle’s shares have risen nearly 34 per cent this year, as mega cloud-computing deals with OpenAI and others and its plans to build large-scale AI cloud data centers helped boost sentiment.

However, investors have turned cautious, closely examining major cloud companies’ earnings reports for signs of an AI bubble fueled by heavy spending, high valuations, limited real-world productivity gains, and complex circular investments.

• Read more: Oracle shares tumble on gloomy outlook

12/11/25 06:27

Thursday’s analyst upgrades and downgrades

- David Leeder

National Bank Financial analysts Shane Nagle and Rabi Nizami see supply shortfalls supporting the near-term price outlook for copper heading into 2026, while they warn “some cracks” in the demand outlook persist.

“Supply disruptions at several major copper mines combined with stronger than expected economic activity led to a small copper deficit and support for higher copper prices throughout 2025,” they said. “We forecast a larger deficit for 2026 as supply continues to fall short of demand growth. The biggest swing factor remains Cobre-Panamá - which continues to progress towards a resolution (we model contributions by H2/27).

Stocks mentioned include: Advantage Energy Ltd.; Aurora Cannabis Inc.; BCE Inc.; Canopy Growth Corp.; Capital Power Corp.; Capstone Copper Corp.; Evertz Technologies Ltd.; Foran Mining Corp.; Ivanhoe Electric Inc.; Osisko Metals Inc.; Peyto Exploration & Development Corp.; Solaris Resoures Inc.; Taseko Mines Ltd; Telus Corp.; Vermilion Energy Inc.

• Read more: Thursday’s analyst upgrades and downgrades

12/11/25 05:56

Wall Street futures slide as Oracle’s forecast revives AI bubble fears

- Reuters

U.S. stock index futures tumbled on Thursday after Oracle’s (ORCL-N) forecasts raised fresh concerns about hefty AI spending and outweighed optimism following a less hawkish tone from the Federal Reserve.

Oracle slumped 12 per cent in premarket trading after its quarterly forecasts missed analysts’ estimates and the company said annual spending would rise by US$15-billion compared with its earlier expectations.

The cloud company had gained prominence earlier this year after announcing deals to build AI cloud data centres for OpenAI.

However, its shares were on track for their biggest quarterly loss since mid-2002 on worries that heavy reliance on debt financing could be a recipe for a bubble similar to the early 2000s.

“Oracle has been at the epicentre of the AI financing debate, lacking the mammoth cash flows of the more traditional cloud giants,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown.

Shares of other artificial intelligence companies were also hit.

Chipmakers Nvidia and Broadcom fell 1.6 per cent and 1.5 per cent, respectively, while hyperscalers such as Microsoft and Amazon.com dropped 1 per cent each and CoreWeave declined 3.3 per cent.

At 4:30 a.m. ET, Dow E-minis were down 144 points, or 0.30 per cent, S&P 500 E-minis were down 42.5 points, or 0.62 per cent and Nasdaq 100 E-minis were down 207.5 points, or 0.80 per cent.

Wall Street’s fear gauge, the CBOE volatility index, climbed 0.71 points and was last at 16.47.

12/11/25 05:27

Before the Bell: What every Canadian investor needs to know today

- S.R. Slobodian

Global markets were mixed as renewed worries over tech valuations after Oracle’s weak forecast offset investor relief from the U.S. Federal Reserve’s less-hawkish-than-anticipated comments after cutting interest rates.

Wall Street futures were in negative territory. Dow futures were down 0.4 per cent, S&P 500 futures fell 0.85 per cent and Nasdaq futures were 1.17 per cent lower as of 4 a.m.

TSX futures followed sentiment lower after a fresh record close yesterday.

In Canada, investors are getting results from Dollarama Inc., Empire Co. Ltd. and Lululemon Athletica Inc.

On Wall Street, markets are watching earnings from Costco Wholesale Corp. and Broadcom Inc.

“The initial positive tone from a Fed cut ... is being overshadowed by Oracle,” said ANZ’s Head of Asia Research Khoon Goh. “The focus is mainly on the capex spend,” he said, which revived last month’s nerves about returns on AI investment.

Read more: Before the Bell

12/11/25 04:51

World markets struggle for direction as Oracle stocks AI bubble fears

- The Associated Press

World shares are mixed on Thursday after the U.S. stock market again approached its record high following the Federal Reserve’s cut in its main interest rate.

The Fed’s rate cut was widely expected, but comments by Fed Chair Jerome Powell encouraged hopes for more cuts in 2026.

However, some Asian technology companies saw sharp declines after Oracle (ORCL-N), a bellwether in the artificial intelligence sector, reported weaker than expected earnings. Its shares sank 11.5 per cent in aftermarket trading. The company’s spending spree in AI has some worried about its cash flow.

“Frankly, the report was not dramatically bad, but it came to confirm concerns around heavy AI spending, financed by debt, with an unknown timeline for revenue generation,” Ipek Ozkardeskaya of Swissquote said in a commentary.

The future for the S&P 500 fell 0.7 per cent while that for the Dow Jones Industrial Average was 0.3 per cent lower.

12/11/25 04:30

Wednesday markets recap: TSX at record high after Fed cuts interest rates

- Reuters, Globe staff

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Stocks ended higher on Wednesday after the Federal Reserve cut interest rates by a quarter percentage point as expected and investors bet on further easing down the road, even as the central bank signalled that it will put further cuts on pause for now. Canada’s main index closed at a fresh record high, tracking the advance on Wall Street.

The U.S. central bank said that before its next policy change it would look ahead for clearer signals about the direction of the job market and inflation that “remains somewhat elevated.” But projections after the Fed’s two-day meeting showed median expectations for another quarter-point cut in 2026, in line with expectations at the September meeting.

And policy makers raised estimates for 2026 GDP growth to 2.3 per cent from 1.8 per cent and maintained expectations for a 4.4-per-cent unemployment rate at the end of next year. In his press conference, Fed Chair Jerome Powell declined to provide guidance on whether there will be another rate cut in the near future. However, investors garnered some hope for easing from his comments that the labour market has significant downside risks and that the central bank doesn’t want its policy to push down on job creation.

The S&P 500 closed up 0.67 per cent and the S&P/TSX Composite 0.79 per cent. Bond yields fell in both the U.S. and Canada.