Canadian Stocks Dip Amid Profit-Taking, Mixed US Economic Data

(RTTNews) - Canadian stocks moved lower on Thursday, retreating from yesterday's record highs as today's inflation data from the US eased expectations of a substantial Fed rate cut this September though job market data kept rate cut anticipation alive. Profit-taking by investors from previous record gains also weighed on the market.

After opening slightly lower than the previous close, the benchmark S&P/TSX Composite Index stayed in negative territory and finally closed at 27,915.99, down by 77.44 points (or 0.28%).

Canada is currently reeling under 35% US tariffs for all its exports to the US, except for goods covered under the CUSMA. Domestic industries - especially, steel, automobile, and manufacturing sectors - are struggling to manage businesses since the new US tariffs directly affect them.

Days before, as a retaliatory action for Canada's imposition of 100% tariff on Chinese vehicles, China slapped Canada with nearly 76% tariff on Canadian canola imports into China. The levy is set to come into force today.

The duty has caused Canada's precious crop price to fall, eroding millions of dollars in value.

Hitting the travel industry hard, Air Canada plans to cancel around 500 flights by Friday ahead of a planned strike (set for Saturday) by its unionized flight attendants. The move is said to impact approximately one million passengers.

On the monetary front, the yield on Canada's two-year bonds rose to 2.71% today, marking a 0.03% increase from previous session.

In the US, headline and core PPI (which excludes food and energy) each rose 0.9% in July, the largest monthly gains in three years, signaling rising business costs.

Year-on-year, headline producer inflation increased to 3.3% (a five-month high) and annual core producer inflation increased to 3.7% from 2.6%.

The inflation data has subdued expectations for big rate cuts though jobs data keeps the anticipation alive.

The globally anticipated meeting between US President Donald Trump and Russian President Vladimir Putin is scheduled to happen tomorrow in Alaska.

The US is keen on ending Russia's three-plus-year war with Ukraine. Trump has threatened that Russia will face severe consequences if it fails to stop the war after tomorrow's summit.

With European leaders expressing support for Trump's efforts, investors feel that the outcome of the talks may drive the path for global trade as well as in establishing the supremacy of the US as a global leader.

Major sectors that gained in today's trading were Healthcare (2.17%), Communication Services (0.84%), Consumer Discretionary (0.45%), and Financials (0.42%).

Among the individual stocks, Bausch Health Companies Inc (5.17%), BCE Inc (1.45%), Gildan Activewear Inc (2.82%), and Great West Lifeco Inc (1.53%) were the prominent gainers.

Major sectors that lost in today's trading were Consumer Staples (0.14%), Materials (0.21%), Industrials (1.13%), and IT (3.14%).

Among the individual stocks, Bird Construction Inc (15.43%), Constellation Software Inc (5.57%), Celestica Inc (3.41%), and Shopify (3.54%) were the notable losers.

Equinox Gold Corp (15.14%) and Energy Fuels Inc (3.21%) were among the prime market-moving stocks today.