Daily roundup of research and analysis from The Globe and Mail’s market strategist Scott Barlow
RBC Capital Markets analyst Bish Koziol’s QuaDS [a mash-together word made from “quantitative” and the first letters of “Dominion Securities”] Score Top 40 list of top domestic stock picks saw four changes this month. Eldorado Gold Corp. (ELD-T) and Finning International Inc. (FTT-T) were removed on growth and valuation grounds in favour of Ag Growth International Inc. (AFN-T) and Northland Power Inc. (NPI-T).
The list now includes Pason Systems Inc., Suncor Energy Inc., Trican Well Service Ltd, Ovintiv Inc, Canadian Natural Resources Ltd, Imperial Oil Ltd, Paramount Resources Ltd, Keyera Corp, Stella-Jones Inc, Silvercorp Metals Inc, Cascades Inc, Hudbay Minerals Inc, CCL Industries Inc., lamgold Corp, Dundee Precious Metals Inc, Exchange Income Corporation, Ag Growth International Inc, Aecon Group Inc, Toromont Industries Ltd, Linamar Corporation, Magna Intemational Inc., Saputo Inc., Loblaw Companies Ltd, Metro Inc., AGF Management Limited, Bank of Nova Scotia, Great-West Lifeco Inc, Canaccord Genuity Group Inc, Equitable Group Inc., CIBC, iA Financial Corporation Inc, Fairfax Financial Holdings Ltd, Bank of Montreal, Open Text Corp, Enghouse Systems Limited, Rogers Communications Inc., Cogeco Communications Inc, Quebecor, Inc. and Northland Power Inc.
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BMO summer analyst Olivia Yong thinks the domestic economy may have turned a corner,
“The Ivey Purchasing Manager’s Index reflects renewed optimism in the Canadian economy as the index rose 2.5 pts to 55.8 in July. The index tumbled earlier this year amid the volatile trade environment but has climbed back since. Nevertheless, tariff uncertainty is making its presence known as firms have trimmed inventories. However, hiring has stabilized, as recent U.S. trade deals offer some encouragement. Further, price gains are decelerating, which the Bank of Canada will be pleased to see, as it monitors inflation to determine when to resume cutting rates. Bottom Line: Economic activity might be stabilizing despite ongoing trade disputes and weaker demand”
“BMO: Canadian economy may be turning a corner” – (research excerpt, chart) Bluesky
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Goldman Sachs economist believe AI will cause a major dislocation in U.S. labour markets,
“Our economists say they’ve yet to see a large impact from artificial intelligence (AI) on U.S. labour market data—which is unsurprising, considering that only 9 per cent of U.S. companies are using the technology for regular production.
“But once AI reaches full adoption, it could lead to the displacement of 6-7 per cent of U.S. workers, according to Joseph Briggs, who co-leads the Global Economics team in Goldman Sachs Research. This displacement could be temporary, as new job opportunities created by AI put people to work in other capacities. In the latest episode of Goldman Sachs Exchanges, Briggs digs into the timeline for adoption, what roles have higher and lower risk of displacement, and how an economic slowdown could intensify labor market disruption”
“AI Exchanges: AI’s Impact on Employment” – (podcast) Goldman Sachs
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Bluesky post of the day:
“International equity markets are on pace to outperform the broad US stock benchmark this year, the first time they’ve done that since 2022.” @bloomberg.com
— Carl Quintanilla (@carlquintanilla.bsky.social) August 8, 2025 at 7:04 AM
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Diversion:
“Photos: 13 Years on Mars” – The Atlantic