Toronto Stocks Edge Higher Amid Gildan Activewear's $2.2B Hanesbrands Acquisition

Toronto stocks edged higher, with the S&P/TSX Composite Index rising 0.2% to 27,986.92 and the blue-chip S&P/TSX 60 advancing 0.3% to 1,661.53. Gildan Activewear shares jumped 11% after acquiring Hanesbrands for $2.2 billion. Other market movers included Metro shares falling 6.2% due to price increases from suppliers citing new import tariffs, and Air Canada shares dropping 1.1% after receiving notice of a potential flight attendant strike.

The Toronto stock market edged higher on Friday, July 2, 2025, with the S&P/TSX Composite Index rising 0.2% to 27,986.92 and the blue-chip S&P/TSX 60 advancing 0.3% to 1,661.53. The market's performance was driven by a mix of positive and negative earnings reports, as well as external factors.

Key movers included:

- Gildan Activewear (GIL): Shares of Gildan Activewear jumped 11% after the company announced the acquisition of Hanesbrands for $2.2 billion. This acquisition is expected to enhance Gildan's market position and product offerings.
- Metro (MRU): Metro shares fell 6.2% due to price increases from suppliers citing new import tariffs. The company's ability to pass these costs on to consumers remains to be seen.
- Air Canada (AC): Air Canada shares dropped 1.1% after receiving notice of a potential flight attendant strike. This news could negatively impact the company's operational efficiency and revenue.

Other notable movements included:

- Sun Life Financial (SLF): Sun Life Financial shares fell 6.9% after reporting weakness in the U.S. segment. The company's underlying net income for the second quarter increased by 2% compared to the same period last year, but the U.S. segment saw a decrease of 10% [1].
- Canopy Growth (CGC): Canopy Growth shares rose 21% following the company's strong performance in the Canadian cannabis market. The company's second-quarter results showed positive growth in the Canadian market, which contributed to the stock's significant increase [1].
- Algonquin Power & Utilities (AQN): Algonquin Power & Utilities shares fell 2.5% after reporting a decline in Q2 profit. The company's quarterly earnings missed expectations, leading to a decrease in share price [1].
- Open Text (OTEX): Open Text shares rose 9.4% on a better-than-expected revenue decline. The company reported a decline in revenue but outperformed market expectations, leading to an increase in share price [1].
- Boralex (BEP): Boralex shares fell 5.6% after reporting a loss in Q2. The company's financial results showed a decrease in profit, contributing to a decline in share price [1].

Market Outlook:
The Toronto stock market's performance on Friday was influenced by a mix of positive and negative earnings reports. The market's reaction to these reports highlights the importance of individual company performance in driving stock price movements. Investors should continue to monitor earnings reports and other economic indicators to make informed investment decisions.

References:
[1] https://www.ainvest.com/news/toronto-stocks-edge-higher-weak-retail-utilities-sun-life-falls-weakness-2508/
[2] https://finance.yahoo.com/news/why-core-main-cnm-outpaced-220002151.html
[3] https://www.reuters.com/world/americas/tsx-ends-higher-move-limited-ahead-us-inflation-report-2025-08-11/
[4] https://www.theglobeandmail.com/investing/markets/inside-the-market/market-news/article-premarket-global-stocks-subdued-as-inflation-fears-dampen-us-china/