A trader is seen at his post inside the New York Stock Exchange on Friday, April 25, 2025. (AP Photo/Richard Drew)
Canada’s leading stock index ended the week with a small dip, just as U.S. markets moved upward, powered by early corporate earnings reports from major players.
The S&P/TSX composite index edged down by 17.02 points, closing at 24,710.51. In contrast, Wall Street saw notable gains. The Nasdaq surged by 216.90 points to hit 17,382.94. The S&P 500 climbed 40.44 points to 5,525.21, and the Dow Jones Industrial Average inched up by 20.10 points, finishing at 40,113.50.
Stephen Duench, vice-president and portfolio manager at AGF Investments Inc., pointed out that expectations for this earnings season were unusually low. He compared it to the early months of the COVID-19 pandemic, saying analysts haven’t slashed their forecasts this aggressively in years. Because of that, even slightly positive earnings results have had a strong impact on stock prices.
He summed up the mood by saying, “Even results that are just better than bad are being taken as good news.”
The real action is expected to begin next week, as several major U.S. tech giants — often referred to as the “magnificent seven” — are set to reveal their financial updates. This includes Meta, Apple, and Microsoft, all of which could influence market momentum.
Duench believes one big trend to watch for this season will be share buybacks. Google’s parent company, Alphabet, recently announced it would spend $70 billion to repurchase its own stock. The news gave its shares a 1.5% boost on Friday.
In today’s uncertain geopolitical environment, and with unpredictability surrounding U.S. politics, Duench says many companies are choosing to hold on to their cash instead of investing in new projects. Instead, they’re buying back their shares, a move that often signals confidence in their current valuation.
He emphasized that while caution is natural during times of market stress, investors should also stay open to opportunities. “It’s not easy to be hopeful right now,” he said, “but sometimes, the positive signals are subtle. It pays to keep a balanced approach and not lean too far into fear.”
Meanwhile, in the commodities market, the Canadian dollar saw a slight rise, trading at 72.13 cents U.S., up from 72.09 cents on Thursday.
Oil prices also made minor moves. June crude contracts gained 23 cents to settle at $63.02 per barrel. Natural gas for June added two cents to land at $3.11 per mmBTU.
However, precious metals faced a dip. June gold fell by $50.02 to end at $3,298.40 an ounce. July copper also slipped by two cents, closing at $4.89 per pound.
As corporate earnings season heats up, U.S. markets continue to show resilience, offering investors cautious hope despite global uncertainties.
