Canada’s main stock index edged lower on Thursday but was holding close to a record high, as metal mining shares lost ground and the strength of corporate earnings offset ongoing uncertainty about the economic outlook.
The S&P/TSX composite index ended down 44.15 points, or 0.2 per cent, at 27,372.26, after posting a record closing high on Wednesday.
“The TSX wants to go higher, it’s just consolidating today on low volume,” said Brandon Michael, senior investment analyst at ABC Funds.
“While concerns surrounding tariffs, interest rates, and recession linger, the stock market and economy continue to show resilience, drawing strength from corporate earnings which continue to beat.”
South of the border, the S&P 500 and the Nasdaq notched record high closes on Thursday as robust results from Google parent Alphabet fuelled optimism about other heavyweight artificial intelligence stocks, while Tesla slumped after the electric vehicle maker’s results disappointed investors.
Canadian retail sales shrank by 1.1 per cent in May from April as consumers curtailed car purchases and spent less at supermarkets, convenience stores and on alcohol but a preliminary estimate for June pointed to a rebound of 1.6 per cent. The materials group, which includes metal mining shares, fell 1.3 per cent as the price of gold fell for a second straight session, with signs of easing global trade tensions dampening demand for safe-haven assets. Orla Mining shares tumbled 14.4 per cent, while shares of Teck Resources were down 8.7 per cent as the company cut its full-year copper production guidance.
In U.S. trading, Alphabet rose 1 per cent as the search giant’s results boosted confidence that heavy investment in a race to dominate AI technology is paying off.
Shares of Microsoft, Nvidia and Amazon each climbed 1 per cent or more.
The U.S.-Japan trade deal and recent signs of progress in talks with the European Union also fueled Wall Street’s gains.
“Investors are feeling optimistic about trade negotiations, about the economy, the trend in inflation, as well as the better-than-expected Q2 earnings reports,” said Sam Stovall, chief investment strategist at CFRA Research.
Tesla tumbled 8.2 per cent after CEO Elon Musk warned of a “few rough quarters” as the U.S. government cuts support for electric vehicle makers. The stock has fallen around 25 per cent so far in 2025.
UnitedHealth fell 4.8 per cent after the insurer revealed it was cooperating with a Department of Justice probe into its Medicare practices, following reports of both criminal and civil investigations.
IBM dropped almost 8 per cent after its second-quarter results fell flat with investors, hampered by disappointing sales in its core software division.
Honeywell fell 6.2 per cent despite topping Wall Street’s expectations and raising its annual outlook.
The S&P 500 crept up 0.07 per cent to end the session at 6,363.35 points. The Nasdaq gained 0.18 per cent to 21,057.96 points, while the Dow Jones Industrial Average declined 0.70 per cent to 44,693.91 points.
Volume on U.S. exchanges was relatively heavy, with 19.9 billion shares traded, compared to an average of 17.8 billion shares over the previous 20 sessions.
Eight of the 11 S&P 500 sector indexes declined, led lower by consumer discretionary, down 1.23 per cent, followed by a 0.75 per cent loss in materials.
American Airlines tumbled nearly 10 per cent after the carrier forecast a big third-quarter loss, hurt by sluggish domestic travel demand.
U.S. President Donald Trump’s global trade war has created the biggest uncertainty for the airline industry since the COVID-19 pandemic.
Markets were also monitoring Trump’s planned visit to the Federal Reserve’s headquarters on Thursday, following months of the president criticizing Fed Chair Jerome Powell for interest rates that Trump views as too high.
With the Fed widely expected to hold rates steady at next week’s meeting, traders see a 60 per cent chance of a September rate cut, according to CME’s FedWatch tool.
A U.S. Labor Department report showed jobless claims last week fell to 217,000 - well below estimates - signalling continued resilience in the job market.
U.S. business activity gained momentum in July, but companies hiked prices on goods and services, fueling economists’ predictions of faster inflation in the months ahead, largely driven by rising import tariffs.
Declining stocks outnumbered rising ones within the S&P 500 by a 1.3-to-one ratio.
The S&P 500 posted 46 new highs and 6 new lows; the Nasdaq recorded 81 new highs and 44 new lows.
- Reuters