Canadian Stocks Tick Lower Amid Profit Taking, US Jobs Data

(RTTNews) - Canadian stocks closed incrementally lower on Thursday, as investors took to profit taking but refrained from making big moves. Upbeat US economic data partly offset recent optimism about further interest rate cuts.

After opening much lower than yesterday's close, the benchmark S&P/TSX Composite Index regained ground but still closed down 24.97 points (or 0.08%) at 29,731.98.

Six of the 11 sectors posted gains today, with the materials sector leading the pack.

As the third quarter of this year is close by, investors booked profits from the recent record rally when index hit new highs.

In the US, a report released by the Labor Department unexpectedly showed an extended pull-back by first-time claims for US unemployment benefits for the week ending September 20.

The Commerce Department also released separate reports showing an unexpected surge by durable goods orders in August as well as stronger-than-previously-estimated GDP growth in the second quarter.

These numbers have now dampened expectations for additional rate cuts by the US Federal Reserve this year which traders were pricing in.

On the Canadian economic front, data from Statistics Canada showed average weekly earnings rose 3.3% year-on-year to C$1,307.86 in July, easing slightly from 3.6% in June.

The yield on the 30-year-bond rose to 3.68%, marking a 0.01% increase from the previous session.

On September 17, the Bank of Canada cut its key interest rate to 2.5%, thereby dropping the benchmark for variable mortgage rates which typically follow the prime lending rate.

Fixed mortgages are not set by the central bank but are influenced by bond market yields and therefore have an effect.

Results of a survey by Royal LePage released today revealed that despite declining interest rates, higher inventory, and a softening housing market, most Canadians are choosing to delay their purchase plans for another year as they seek to see stability out of the prevailing economic uncertainty.

The US Supreme Court is set to begin its hearing on the Trump administration's appeal of a lower US court judgment deeming the "reciprocal tariffs" as illegal in November, and a verdict is likely to be delivered by mid-2026. A s it stands, the trade talks between Canadian and US officials to avert "high tariffs" are now in a pause.

In its attempt to move away from decade-long reliance on the US for its trade relations, Canada is diversifying its trading partners.

Days before, Canadian Prime Minister Mark Carney stated that he had "constructive talks" with Chinese Premier Li Qiang.

A high-level delegation from Canada is set to visit India to frame a new bilateral trading framework.

Canada reportedly plans to create duty-free access for up to 95% of its exports to Indonesia over the next eight to 12 months. This is Canada's first-ever bilateral trade agreement with an ASEAN country.

On the business front, software major BlackBerry reported earnings of $0.03 per share, beating estimates of $0.01. The former mobile manufacturing company which now specializes in cybersecurity software, posted revenue of $129.6 million and reported a second-quarter profit of US$13.3 million compared to a loss of US$19.7 million, a year earlier.

Major sectors that gained in today's trading were Materials (1.11%), Communication Services (0.55%), Utilities (0.47%), and Consumer Discretionary (0.28%).

Among the individual stocks, Ssr Mining Inc (4.35%), Novagold Res Inc (3.83%), Endeavor Silver Corp (3.40%), Northland Power Inc (1.72%), and Magna International Inc (1.50%) were the prominent gainers.

Major sectors that lost in today's trading were Consumer Staples (0.47%), Real Estate (0.56%), Healthcare (1.31%), and IT (2.51%).

Among the individual stocks, Dye & Durham Ltd (7.38%), Constellation Software Inc (5.95%), CGI Group Inc (3.36%), Shopify Inc (3.33%), and Bausch Health Companies Inc (2.49%) were the notable losers.

Brookfield Business Partners LP (12.46%) and Blackberry Ltd (9.11%) were among the prime market-moving stocks today.