Bay Street in Canada's financial district is shown in Toronto on Wednesday, March 18, 2020. THE CANADIAN PRESS/Nathan Denette
TORONTO – Canada’s main stock index edged higher on Wednesday, helped by energy and industrial stocks.
The S&P/TSX composite index closed up 2.70 points at 20,116.66, while U.S. stock markets were closed for their Thanksgiving holiday.
Markets in the U.S. and Canada have made a “significant recovery” so far in November from October, said Brianne Gardner, senior wealth manager of Velocity Investment Partners at Raymond James Ltd.
“We are hoping to continue this momentum into the year end,” she said.
“This last week has been really tech kind of confirming its dominance still,” Gardner added.
Meanwhile, energy stocks have been mirroring oil, she noted, which continued its descent on Thursday.
Retailers are gearing up for Black Friday and Cyber Monday, a highly anticipated weekend of sales many companies rely on for a boost. But if third-quarter earnings are anything to go by, it might be a letdown for firms seeking a lift for their bottom line.
Many retailers reporting earnings for the latest quarter beat expectations, but then lowered them for the coming months, said Gardner, as they saw consumers starting to cut back on spending amid the rising cost of living.
“Even though they might be beating earnings expectations, they are warning of bumpy roads ahead, as they are expecting sales to decline,” she said.
For example, Walmart last week reported better-than-expected results for the third quarter but said shoppers pulled back on spending in late October.
In a slowing economy weighed down by higher interest rates, and still reeling from a nasty bout of inflation, consumers will still spend but discretionary purchases will be the first to get cut, said Gardner.
“I think this holiday, people are tightening the belt,” she said.
“People are shifting how they’re spending, but I think they would also rather spend on experiences and travel over potentially retail spending as a whole. So I think we are expecting a slowdown in retail, even approaching the holiday season.”
The Canadian dollar traded for 73.00 cents US compared with 72.87 cents US on Wednesday.
The January crude contract was down 75 cents at US$76.35 per barreland the January natural gas contract was up three cents at US$3.07 per mmBTU.
The December gold contract was up 50 cents at US$1,993.30 an ounce and the December copper contract was up one cent at US$3.77 a pound.
This report by The Canadian Press was first published Nov. 23, 2023.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
