Canadian stocks trended higher on Wednesday after the U.S. wholesale inflation data for June showed producer prices were flat month over month, offering a reassuring sign that inflationary pressures might be stabilizing at the factory gate despite tariff threats. The S&P/TSX Composite Index climbed 99 points, or 0.4%, to close at 27,153, as investors reacted positively to the tame inflation print, which renewed hopes for potential rate cuts later this year.
Even as weaker commodity prices drove shares of energy and mining companies lower, solid gains in other main sectors such as technology, financials, and consumer staples helped offset the drag, keeping the TSX index firmly in positive territory.
Notably, U.S. producer prices were unchanged last month, defying expectations of a 0.2% rise, as higher goods costs were offset by a slight decline in services. This flat monthly reading helped ease concerns about input cost inflation and added to investor optimism around a cooling pricing environment.
Top TSX Composite movers and active stocks
Denison Mines, Energy Fuels, NovaGold Resources, and Brookfield Asset Management were the top-performing TSX stocks for the day, with each climbing by at least 4.3%.
Despite the broader market optimism, shares of Cogeco Communications (TSX:CCA) plunged by 8.5% to $64.88 per share, making it the day’s worst-performing TSX stock. This selloff in CCA stock followed the Montréal-based telecommunications firm’s May quarter financial results, which showed a 2.4% year-over-year drop in revenue and a 20.5% decline in adjusted profit.
While Cogeco’s Canadian internet subscriber growth remained strong and free cash flow surged last quarter, investor sentiment was mainly dented by the company’s lowered full-year revenue forecast. Weakness in its U.S. telecom segment and a competitive pricing environment in Canada also weighed on expectations, triggering a selloff in CCA stock.
SSR Mining, Capstone Copper, and First Majestic Silver were also among the session’s biggest losers on the Toronto Stock Exchange as they slipped by at least 3.4% each.
According to the exchange’s daily trade volume data, Canadian Natural Resources, Cenovus Energy, TD Bank, Enbridge, and Baytex Energy were the five most active stocks.
TSX today
Commodity prices across the board were mixed in early trading on Thursday, which could keep the resource-heavy main TSX index flat at the open today.
While no major domestic economic releases are due, Canadian investors will closely monitor the monthly U.S. retail sales, manufacturing, and weekly jobless claims reports this morning for fresh insights into the strength of the U.S. economy. These indicators could influence expectations around future interest rate decisions and impact cross-border market sentiment.
After Wednesday’s market closing bell, Alimentation Couche-Tard (TSX:ATD) said it has withdrawn its takeover proposal for Japan’s Seven & i Holdings, citing a lack of constructive engagement from the company. Following the announcement, Seven & i’s stock plunged more than 9% in Tokyo trading. The news could also keep Couche-Tard shares active on the TSX today as investors weigh the implications of the failed bid.
On the corporate events side, the TSX-listed Choice Properties REIT will release its latest quarterly report today after the market closing bell. Bay Street analysts expect the REIT to post $0.26 per share in funds from operations for the June quarter, with $377 million in revenue.
Market movers on the TSX today
