Bay Street Likely To Open Higher

(RTTNews) - Canadian stocks are likely to open on a positive note Thursday morning, riding on strong bank earnings. Optimism about a rate cut by the Federal Reserve next week is also likely to aid sentiment.

After Royal Bank of Canada, Bank of Nova Scotia and National Bank of Canada, three more major Canadian banks Toronto-Dominion Bank, Bank of Montreal and Canadian Imperial Bank of Commerce have reported strong quarterly earnings.

(TD.TO) reported adjusted net income of $3,905 million in the fourth quarter of its latest financial year, compared with $3,205 million a year ago. Adjusted diluted earnings per share came in at $2.18, compared to $1.72 in the year-ago quarter.

Bank of Montreal (BMO.TO) reported net income of $2,295 million for the fourth quarter, compared with $2,304 million a year ago. Adjusted net income was $2,514 million in the fourth quarter, an increase of 63% from $1,542 million in the year-ago quarter.

Canadian Imperial Bank of Commerce (CIBC.TO) reported a net income of $2.18 billion for the quarter ended October 31, 2025, up 16% from $1.88 billion in the corresponding quarter a year ago.

On the economic front, the IVEY PMI reading for the month of November is due at 10 AM ET.

Canada's Ivey PMI fell to 52.4 in October from 59.8 in September, staying above the 50-point threshold for the sixth consecutive month.

Canadian stocks edged higher on Wednesday as upbeat earnings from Royal Bank of Canada and National Bank of Canada, and optimism about an interest rate cut by the Federal Reserve next week helped underpin sentiment.

Despite some wild swings, stocks managed to move up, lifting the benchmark S&P/TSX Composite Index up by 111.26 points or 0.36% to 31,160.54.

Asian stocks ended mixed on Thursday after Microsoft reportedly lowered its AI product sales targets, reviving worries over softer AI demand and margins. Investors also adopted a cautious stance before rate decisions by the Federal Reserve and the Bank of Japan in the coming days.

The major European markets are up in positive territory today with investors picking up stocks amid continued optimism about a rate cut by the Fed next week.

In commodities trading, West Texas Intermediate Crude oil futures are up $0.23 or 0.39% at $59.18 a barrel.

Gold futures are down marginally at $4,231.00 an ounce, while Silver futures are lower by $0.745 or 1.27% at $57.875 an ounce.