TSX Climbs as TD Bank Exceeds Earnings Forecasts
By Fergal Smith
() -Canada’s main stock index edged higher on Thursday as technology shares clawed back some of the previous day’s declines and investors cheered Toronto-Dominion Bank’s quarterly results.
The S&P/TSX composite index of the Toronto Stock Exchange concluded trading up 14.84 points, or 0.1%, at 25,854.01. The market remained near the all-time peak reached early this week as concerns over global trade eased.
U.S. stock indices ended nearly flat as Treasury yields retreated from their recent peaks following the passage of U.S. President Donald Trump’s tax and spending legislation by the House of Representatives.
“Although we may not be completely clear of challenges… in Canada, we find ourselves in an extremely low-interest-rate setting, with inflation having dropped significantly and solid earnings reported,” stated Barry Schwartz, who serves as the chief investment officer at Baskin Wealth Management.
For the second quarter, TD Bank announced earnings that exceeded expectations, largely due to the performance of its wholesale banking division. The bank also stated that it plans to reduce its staff by 2% as part of efforts to trim expenses and boost investment in digital technologies and artificial intelligence.
Shares of Canada’s number two bank climbed by 3.2%, and the significantly influential financial sector concluded 0.6% higher.
Schwartz indicated that the recent gains in banking sector stocks suggest investors do not anticipate a severe economic downturn.
“The prudent investors suggest that even if a recession occurs, it might just be a technical one, causing minimal economic disruption with better times on the horizon,” noted Schwartz.
Tech stocks climbed 0.6%, whereas the materials sector, encompassing firms like fertilizers companies and metals miners, finished 0.8% down as gold prices retreated from their recent advances.
(Reported by Fergal Smith in Toronto and Sanchayaita Roy in Bengaluru; Edited by Sahal Muhammed, Leroy Leo, and Rod Nickel)