Future Looks Bright for TSX, Experts

Canada's main stock index is set to extend its record-setting run this year and next as lower borrowing costs along with potentially greater clarity on U.S. tariffs offset expected pressure on corporate profits, a Reuters poll found. The TSX Composite Index gained 37.43 points to kick off Tuesday at 27,960.28. The Canadian dollar slid 0.21 cents to 72.24 cents U.S. In macroeconomic news, July’s consumer price index rose 1.7% year over year, down from a 1.9% increase in June. On a seasonally adjusted monthly basis, the CPI rose 0.1% in July. Economists polled by Reuters expected CPI to show a moderation in the annual inflation rate to 1.8% last month from 1.9% in June. ON BAYSTREET The TSX Venture Exchange dropped 4.14 points to begin Tuesday at 784.94. Seven of the 12 TSX subgroups were higher in the first hour, led by consumer staples, up 1.2%, consumer discretionary stocks, ahead 0.9%, and industrials, stronger by 0.7%. The five laggards were weighed most by information technology, down 0.6%, gold, off 0.5%, and health-care, skidding 0.4%. ON WALLSTREET Stock were mixed Tuesday as new earnings from major retailers began to roll in, while traders looked ahead to a key speech from Federal Reserve Chair Jerome Powell later in the week. The Dow Jones Industrial Average hiked 222.68 points to 45,134.50. The S&P 500 index inched ahead 4.97 points to 6,454.12. The NASDAQ weakened 85.09 points to 21,543.78. Home Depot shares rose 2% after the home improvement giant maintained its full-year outlook. To be sure, its second-quarter earnings came in below expectations. Lowe’s, Walmart and Target are on deck for later this week. Investors have awaited these reports as they search for clues on how the consumer is faring amid a mixed inflation outlook and evolving U.S. trade policy. Wall Street is also looking for clues from Powell as to what will happen at the central bank’s remaining policy meetings this year. Central bank officials from around the globe will convene this week in Jackson Hole, Wyoming for the Fed’s annual economic symposium. The fed funds futures market is indicating an 83% chance for a quarter-point rate cut at the Fed’s next policy meeting in September. Prices for 10-year Treasury gained ground Tuesday, lowering yields to 4.31% from Monday’s 4.34%. Treasury prices and yields move in opposite directions. Oil prices gave up 80 cents to $62.62 U.S. a barrel. Gold prices advanced 80 cents at $3,378.80 U.S. an ounce.