TSX Composite Index Edges Up, US Markets Mixed

Canada's main stock index, the S&P/TSX composite, closed just a few points higher after losing steam throughout the day. US markets were mixed, with the Dow Jones industrial average down 19 points and the S&P 500 index up 9 points. The Canadian dollar traded at 73.03 cents US, while crude oil was down 10 cents US at $65.95 per barrel. Gold prices rose to $3,406.40 an ounce.

Canada's main stock index, the S&P/TSX composite, closed just a few points higher after losing steam throughout the day. The index was up 2.99 points at 27,317.00 [2]. Meanwhile, the US markets were mixed, with the Dow Jones industrial average down 19.12 points at 44,323.07 and the S&P 500 index up 8.81 points at 6,305.60 [3]. The Canadian dollar traded at 73.03 cents US, while crude oil was down 10 cents US at $65.95 per barrel. Gold prices rose to $3,406.40 an ounce [2].

Portfolio manager Kevin Burkett of Victoria-based Burkett Asset Management noted that while the TSX was up, the way sectors and stocks were moving reflected a "risk-off trade." Defensive sectors like Alimentation Couche-Tard Inc. and NovaGold Resources Inc. performed well, while more service-oriented firms like Thomson Reuters Corp. traded lower [2].

US markets reached new highs amid a "quiet period" during the summer, with ongoing trade uncertainty. The S&P 500 and Nasdaq Composite indices both hit fresh records, while the Dow Jones Industrial Average dipped less than 0.1 percent [3]. Despite the mixed performance, many big US companies topped analysts' expectations during the earnings season, which is crucial for maintaining investor confidence.

The Bank of Canada reported that tariff-related uncertainty continued to put a damper on business and consumer sentiment in the second quarter, but previously anticipated worst-case trade scenarios seem less likely [2]. However, the next big deadline, at least for now, is Aug. 1, when President Donald Trump has threatened to impose significant tariff hikes if there are no deals with major trading partners [3].

In the broader context, the US stock market's broad-based index S&P 500 mustered a 0.1 percent gain to 6,305.60, a fresh record, while the tech-rich Nasdaq Composite Index also ended at a record, winning 0.4 percent to 20,974.17 [3]. Alaska Air Group fell 1.0 percent after an IT outage prompted a three-hour ground stop, while Verizon jumped 4.1 percent after reporting better than expected earnings [3].

The Canadian dollar's performance was influenced by crude oil prices, which fell 10 cents US at $65.95 per barrel [2]. Gold prices, on the other hand, rose to $3,406.40 an ounce, driven by geopolitical tensions and concerns about inflation [2].

The mixed market performance in Canada and the US reflects the ongoing uncertainty surrounding trade policies and the potential impact of tariffs on the global economy. Investors are keeping a close eye on the upcoming earnings reports and the potential outcomes of the trade negotiations.

References:
[1] https://www.morningstar.com/news/dow-jones/20250717493/dow-jones-top-markets-headlines-at-1-am-et-stocks-end-higher-after-trump-plays-down-intentions-to-fire-powell-trump
[2] https://ca.finance.yahoo.com/news/p-tsx-composite-morning-trading-153239479.html
[3] https://economictimes.indiatimes.com/news/international/us/us-stock-market-sp-500-nasdaq-composite-hit-fresh-highs-dow-jones-drops/articleshow/122822306.cms?from=mdr