The TMX Market Centre is pictured in downtown Toronto. (Photo credit: The Canadian Press/Paige Taylor White)
Canada’s main stock index slipped on Thursday, weighed down by falling shares in basic materials and consumer cyclical sectors. Meanwhile, markets in the U.S. offered a mixed picture, with slight gains in tech stocks offsetting losses in other areas.
According to Kevin Burkett, a portfolio manager at Victoria-based Burkett Asset Management, there wasn’t any major macroeconomic news to move the markets significantly. Instead, individual company performance and updates shaped the day’s action.
The S&P/TSX composite index dropped by 44.15 points, closing at 27,372.26.
Teck Resources Sees Sharp Decline
One of the hardest-hit stocks was Teck Resources Ltd., which plunged 8.6%. The mining company, based in Vancouver, announced disappointing second-quarter earnings and cut its copper production forecast for 2025. This weighed heavily on the overall index.
Burkett noted the market is starting to reflect signs that demand for materials like chemicals and minerals may be shifting, hinting at broader economic changes ahead.
Loblaw Stands Out as a Winner
On the positive side, Loblaw Cos. Ltd. brought some relief to the TSX, climbing over 2%. The grocery giant attributed its earnings boost to the success of its discount store expansion.
Despite periodic criticism, Loblaw has managed to pass rising costs onto consumers effectively—a strategy that seems to be paying off. Burkett pointed out that this reflects a stable demand for essential goods, even when prices go up.
Adding to the buzz, Loblaw announced a four-for-one stock split, aimed at making shares more accessible to investors. Its stock has surged more than 30% in the last year, now trading above $220.
U.S. Markets Show Mixed Signals
South of the border, U.S. stock markets painted a varied picture. The Dow Jones Industrial Average fell by 316.38 points, ending the day at 44,693.91. In contrast, the S&P 500 inched up by 4.44 points, closing at a record high of 6,363.35, and the Nasdaq Composite climbed 37.94 points to reach 21,057.96.
Tech Giants Drive U.S. Gains
Tech stocks helped lift U.S. markets. Alphabet, the parent of Google and YouTube, rose 1% after posting better-than-expected quarterly profits. The company is diving deeper into artificial intelligence and plans to raise its spending on AI chips and related technology by $10 billion, pushing its total investment for the year to $85 billion.
Meanwhile, Tesla dragged on market momentum with an 8.2% drop. The electric vehicle giant reported earnings that met or slightly exceeded expectations, but investor concerns remain. Elon Musk is now promoting Tesla’s AI and robotaxi ambitions, yet market reaction was muted.
Burkett noted Tesla’s strained ties with former U.S. President Donald Trump might be adding pressure. There’s ongoing speculation about how U.S. trade and tariff policies may shift, especially as the August 1 tariff deadline approaches.
Investors Eye Tariff Uncertainty
The pending expiration of paused tariffs on August 1 has investors uneasy. Burkett admitted he’s surprised that this issue remains unresolved so close to the deadline, leaving global trade conditions in limbo.
Commodity and Currency Moves
- Canadian Dollar: Traded at 73.37 cents US, slightly down from 73.48 the previous day.
- Oil: The September crude oil contract rose 78 cents to settle at US$66.03 per barrel.
- Gold: The August gold contract dropped US$24.10, finishing at US$3,373.50 per ounce.
