Canada's main stock index rose toward record highs on Thursday, outperforming U.S. stocks, after the latest round of bank earnings underscored resilience in the economy despite tariff uncertainties.
The TSX screamed higher 301.15 points, or 1%, to reach noon EST at 31,461.69.
The Canadian dollar was up 0.04 at 71.71 cents U.S.
On Thursday, CIBC reported a rise in fourth-quarter profit helped by strength in its capital markets division. Shares in “The Commerce” grabbed $3.80, or 3.1%, to $125.07.
Bank of Montreal and TD Bank also reported a rise in quarterly profits. Shares in “The First Canadian Bank” sagged $2.45, or 1.4%, to $174.57, while TD shares jumped $1.58, or 1.3%, to $119.28.
Shares of the big six Canadian banks have outperformed the TSX so far this year as the lenders bet on fee-based, high-margin businesses to drive expansion at a time loan growth in personal and commercial banking segments has stalled due to economic uncertainty.
Logistics software firm Descartes beat analyst estimates of third-quarter revenue. Descartes shares roared ahead $13.91, or 12%, to $129.27.
In other news, U.S. President Donald Trump could decide next year to withdraw from the United States-Mexico-Canada trade agreement. Politico reported, citing U.S. Trade Representative Jamieson Greer.
On the economic slate, the IVEY School of Business published its PMI for November, index faltered to 48.4 from 52.4 in October. maintaining the 52.3 reading for November 2024.
ON BAYSTREET
The TSX Venture Exchanged nicked up 0.62 points to 943.62.
All 12 TSX subgroups positive midday. Health-care grabbed 2.4%, while information technology triumphed 1.8% and energy jumped 1.3%.
ON WALLSTREET
Stocks were relatively unchanged on Thursday as investors grow more confident in a December interest rate cut from the Federal Reserve.
The Dow Jones Industrials backed off 44.71 points to pause midday Thursday at 47,838.19.
The S&P 500 Index recovered 6.88 points to 6,856.60.
The NASDAQ regained 54.24 points to 23,508.33.
Investors focused on a report from job placement firm Challenger, Gray & Christmas showing announced job cuts in November from U.S. employers moved further ahead of one million for the year as corporate restructuring, artificial intelligence and tariffs helped pare job rolls.
On Wednesday, numbers from ADP revealed a surprising slump in private payrolls.
Mounting signs that the labor market is softening has led Wall Street to be convinced the Fed will cut rates a quarter percentage point at its Dec. 10 meeting, the last of the year.
Markets are pricing in an 89% chance of a cut next Wednesday, far higher than just a couple weeks ago,
On Thursday, investors largely overlooked the latest weekly jobless claims numbers that showed new applications for unemployment insurance at their lowest level since Sept. 2022.
Jobless claims for the week ending Nov. 29 totaled a seasonally adjusted 191,000, down 27,000 from the prior period and below the Dow Jones consensus estimate for 220,000.
Salesforce, a member of the Dow, edged higher after the software company offered a stronger-than-expected revenue forecast.
The 10-year Treasury weakened, raising yields to 4.10% from Wednesday’s 4.06%. Treasury prices and yields move in opposite directions.
Oil prices gained 95 cents to $59.90.
Gold prices grew $12.40 to $4,244.70.
