Canadian Market Remains In Negative Territory After Weak Start

(RTTNews) - The Canadian market, which opened on a weak note Thursday morning, continues to languish in negative territory well past noon, weighed down by losses in technology and industrials sectors.

Healthcare and communications stocks are faring well, while stocks from the rest of the sectors are turning in a mixed performance. Investors are largely reacting to earnings updates, and data showing a bigger than expected increase in producer prices in the U.S. in the month of July.

The benchmark S&P/TSX Composite Index was down 86.68 points or 0.31% at 27,906.75 a little while ago.

Technology stock Sylogist is tanking more than 12%. Celestica Inc is down 4.7% and Shopify is down by about 3.7%. BlackBerry and Constellation Software are also down sharply.

Bird Construction, down nearly 16%, is the biggest loser in the industrials sector. Tfi International, Bombardier, Canadian Pacific Kansas City, Finning International, Exchange Income Corp. and ATS Corp are down 2 to 3%.

Stantec is down more than 2% despite reporting a 20% jump in adjusted earnings per share in the second quarter of 2025.

CCL Industries reported EPS of $1.22 for the second quarter, up compared to $1.13 in the year-ago quarter. The stock is up marginally.

Linamar Corp is down 1.6%. The company reported earnings per share of $2.81 in the second quarter of 2025, compared to $3.06 per share in the year-ago quarter.

The U.S. Labor Department said its producer price index for final demand shot up by 0.9% in July after coming in unchanged in June. Economists had expected producer prices to rise by 0.2%.

The report also showed a substantial acceleration by the annual rate of producer price growth, which surged to 3.3% in July from an upwardly revised 2.4% in June.

The hotter-than-expected producer price inflation data may partly offset optimism about a September interest rate cut generated by the consumer price inflation data released earlier this week.