TORONTO — Strength in consumer cyclical stocks helped Canada's main stock index finish slightly higher on Monday, while U.S. markets lost ground as investors await U.S. inflation data.
The S&P/TSX composite index was up 16.55 points at 27,775.23.
“I think the markets are just trying to digest, especially in Canada; we had disappointing jobs data from last week, but we had some pretty good numbers out of Constellation and Shopify that are helping hold the markets up,” said Diana Orlic, a senior wealth adviser with Richardson Wealth.
Shopify Inc. finished 1.19 per cent lower after seeing gains earlier in the day, holding on to its strength from last week. The company reported a profit of US$906 million in its latest quarter as its revenue grew by 31 per cent. It shares were trading up more than 20 per cent after its earnings report last Thursday.
Constellation Software finished 4.39 per cent higher. It also reported second-quarter results last week.
In New York, the Dow Jones industrial average was down 200.52 points at 43,975.09. The S&P 500 index was down 16 points at 6,373.45, while the Nasdaq composite was down 64.62 points at 21,385.40.
The highlight of this week for Wall Street is likely to arrive on Tuesday, when the U.S. government will report how hot inflation was in July. Economists expect it to show U.S. consumers faced prices that were 2.8 per cent higher in July from a year earlier, a slight acceleration from June’s 2.7 per cent inflation.
“Tomorrow's definitely a big day. We're waiting for that July CPI, just to see what the impacts of the Trump tariffs on inflation are. That might give us a better idea of what's going to happen in September, if the Federal Reserve will do a rate cut or still hold the path because they've yet to do a rate cut,” Orlic said.
Given inflationary risks, she said she is bullish on the materials sector.
“When we see geopolitical risks, obviously gold is a hedge if we're seeing inflation creep back and they can't cut rates,” she said.
However, she noted that while the price of bullion has risen “significantly,” stocks haven’t moved as high.
“We're waiting for a little bit of catch-up,” Orlic said.
Within the materials sector, Barrick Mining Corp. shares lost 2.36 per cent on the day. On Monday, the company reported a rise in profit thanks to higher gold prices and an asset sale, but it also took a US$1.04-billion charge in its second quarter related to its loss of control of a gold mine in Mali
“That's going to weigh on the stock, and you can see it today,” Orlic said.
Cannabis stocks were also trading higher on Monday after U.S. President Trump said he’s "looking at" reclassifying marijuana as a less dangerous drug. A potential move to remove marijuana from the list of Schedule I controlled substances to a Schedule III drug would make it significantly easier to buy and sell cannabis.
Tilray Brands Inc. traded 41 per cent higher, while shares of Canopy Growth Corp gained 26.74 per cent. Meanwhile, Aurora Cannabis Inc. shares were traded 16.37 per cent higher.
The Canadian dollar traded for 72.54 cents US compared with 72.72 cents US on Friday.
The September crude oil contract was up eight cents US at US$63.96 per barrel. The December gold contract was down US$86.60 at US$3,404.70 an ounce.
— With files from The Associated Press.
This report by The Canadian Press was first published Aug. 11, 2025.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD, TSX:ABX, TSX:SHOP, TSX:CSU, TSX:WEED, TSX:ACB)
Daniel Johnson, The Canadian Press
