TSX Gains On Easing Inflation Indictors; Rogers-Quebecor Deal Finalized

© Reuters.

By Ketki Saxena 

Investing.com --  Toronto stocks continued to gain following yesterday’s rally, as investor sentiment remained upbeat after U.S. economist data this week that pared back expectations for a 75 bps hike from the Federal Reserve. 

North American equity markets gained from a slower-than-expected rise in U.S. consumer prices and a drop in producer prices in July, as well as today’s Michigan Consumer Sentiment index, which eased from this summer’s record low and as American consumer’s near-term outlook for inflation eased. 

Further gains on the commodity-heavy Canadian index were capped by weakness in crude, as the market weighed conflicting outlooks from OPEC+ and the EIA on demand forecasts. 

The TSX was also supported by an upbeat mood on Bay Street, following solid stellar earnings from Vermilion energy that continued the Canadian energy earnings bonanza, and the finalization of the much-delayed Rogers-Shaw-Quebecor deal. 

Biggest Stories on Bay Street Today 

Rogers Communications (TSX:RCIa) and Shaw Communications Inc (TSXV:SJRa) announced the finalized sale of Freedom Mobile to Videotron, a unit of Quebecor (TSX:QBRa), paving the way for a merger of Canada's biggest telecom companies, under terms that are “substantially consistent” with the original $2.85-billion deal announcement in June. Rogers and shaw still need clear the two remaining regulatory hurdles that are in the way of their C$20-billion takeover arrangement

Vermilion Energy (TSX:VET) surpassed analyst estimates at earnings yesterday, reporting EPS C$2.20, beating expectations for EPS C$1.67. Fund flow from operations also increased 16% quarter-over-quarter, driven by higher commodity prices, while free cash flow grew 12%. The company also announced that its dividend will rise 33% to C$0.08 per share.yesterday and signalled its intent to ramp up share buybacks. 

Canada Goose (TSX:GOOS) Holdings had its price target price raised by Credit Suisse (SIX:CSGN) raises to C$39 from C$37, citing strong demand and encouraging June trends in China.  Canada Goose yesterday reported that revenue surged 24.2% year over year, supported by the company’s affluent consumer segment spending on its luxury parkas and jackets. 

Canadian Tire Corp Ltd (TSX:CTCa) had its price target cut at Desjardins Securities to C$215 from C$225, to reflect the impact from a slowdown.  At its earnings call yesterday, Canadian Tire Corp. announced a 31.5 %year-over-year decline to net income, the company said, largely attributed to its lesser known financial division. 

Hydro One (TSX:H) confirmed shortly after 8 p.m. EDT yesterday that power had been restored after a widespread outage that affected downtown Toronto, including the city’s financial district. The outage, which started at approximately 11:00 a.m yesterday, did not disrupt trading on the Toronto Stock Exchnge. The utility company said the power failure was due to a crane that collided with transmission lines while being shipped by barge.  

Canadian Stocks Moving Markets This Morning 

Top Gainers: 

• Aurora Cannabis (TSX:ACB) (+8.33%) 
• ECN Capital Corp (TSX:ECN)(+8.10%)
• Lithium Americas (TSX:LAC) (+5.20%) 

Top Losers: 

• Filo Mining (TSX:FIL) (-5.50%)
• Ero Copper (TSX:ERO) (-4.94%) 
• Park Lawn (TSX:PLC)(-3.92%)