A display showing the S&P/TSX Composite Index is seen at the TMX Market Centre in downtown Toronto on November 11, 2022. The photo was taken by Tijana Martin for The Canadian Press.
Canada’s main stock index inched up on Thursday morning, pushed higher by a boost in financial sector stocks, particularly the big banks. Meanwhile, U.S. stock markets presented a mixed picture, with some gains in tech but declines elsewhere.
The S&P/TSX composite index was up by 14.84 points, resting at 25,854.01 by late morning.
One of the day’s key drivers was TD Bank, whose shares saw a solid jump. The Toronto-based bank impressed investors with its second-quarter earnings report. Despite cutting 2% of its workforce, TD reported a massive profit of $11.1 billion, or $6.27 per share—significantly higher than the $2.6 billion, or $1.35 per share, it earned during the same period last year.
The positive earnings sent TD’s stock climbing by 3.2%, closing at $92.81 on the Toronto Stock Exchange. Most other Canadian banks also enjoyed upward momentum.
Allan Small, senior investment adviser at iA Private Wealth, noted that TD performed well across the board—from increasing trading revenues to improved net interest margins. The bank also set aside less money for potential loan losses, adding to the optimistic tone.
“There’s been progress in their U.S. restructuring after that money-laundering issue,” said Small, highlighting that TD’s performance was strong across multiple areas.
South of the border, American investors were taking advantage of price dips, particularly in tech stocks. The Nasdaq gained 53.09 points to hit 18,925.73, showing strength in technology. However, the Dow Jones slipped slightly by 1.35 points to 41,859.09, and the S&P 500 lost 2.60 points, landing at 5,842.01.
Small explained the situation as a typical market movement. “Retail investors didn’t panic during the recent market dip. Instead, they saw it as a chance to buy, and they’re being rewarded for that patience,” he said.
Attention is now shifting to Washington, where lawmakers passed a large bill combining tax cuts, spending reductions, and other priorities backed by former President Donald Trump. The bill includes plans to make permanent some earlier tax reductions and to eliminate taxes on tips, overtime, and some auto loan interest.
The bill has passed in the House and now heads to the Senate. If approved, it could have big consequences for markets, according to Small. While it may benefit taxpayers in the short term, the proposed tax cuts could increase the national debt and trigger inflation—something markets may not welcome.
Indeed, those concerns have already had an effect. U.S. Treasury yields rose during the week, hinting at rising costs for homebuyers and borrowers. That contributed to what could become the stock market’s worst week in nearly two months.
In currency trading, the Canadian dollar slipped slightly, trading at 72.10 cents US, compared to 72.21 cents on Wednesday.
Commodity prices also saw mixed results. Crude oil dipped 37 cents to US$61.20 per barrel, while natural gas fell 10 cents to US$3.64 per mmBTU. Gold prices dropped by US$18.50 to US$3,295 per ounce, and copper nudged up slightly to US$4.68 per pound.
