Positive Start Likely On Bay Street; Earnings, Economic Data In Focus

(RTTNews) - Higher Canadian and U.S. futures and fairly steady bullion prices point to a positive start on Bay Street Friday morning. However, persisting worries about the ongoing Middle East conflict may hurt sentiment and limit market's upside. Weak oil prices could weigh on energy stocks.

In Canadian earnings news, Canadian National Railway Company reported second-quarter net income of C$1.25 billion, compared with C$1.17 billion in the previous year. Earnings per share were C$2.06 versus C$1.87 last year.

On the economic front, the industrial product price index in Canada fell by 1.4% in June from a month earlier, marking the sharpest drop since December 2023. On annual basis, producer prices increased 12.4% in June, after rising 13.6% a month earlier.

Raw materials prices fell 6.9% in June after a 0.5% revised increase in May. Annually, raw materials prices surged 20.7% in June following a 33.4% jump in May.

Wholesale sales in Canada increased 2.7% in June, according to preliminary data, while manufacturing sales edged lower by 0.1%.

Canadian stocks closed lower on Thursday, partially offsetting the gains from two consecutive sessions as rate hike concerns due to skyrocketing crude oil prices, and doubts over the return on investments in Artificial Intelligence weighed on sentiment.

The benchmark S&P/TSX Composite Index ended with a loss of 292.45 points or 0.83% at 35,192.66.

Asian stocks declined on Friday as surging oil prices amid escalating Middle East tensions fueled concerns over energy-driven inflation.

Adding fresh uncertainty to an already shaky global economy, the Trump administration said that it would impose higher tariffs on goods from 60 trading partners, citing forced labor concerns.

The tariffs, ranging from 10 percent to 12.5 percent, would impact major economies like the European Union, U.K., China, India, Japan and Canada. The measures replace a temporary 10 percent global tariff that expires today.

The major European markets are up in positive territory today, supported by a drop in oil prices and fairly encouraging regional PMI data, and UK retail sales data, as well some impressive earnings updates.

In commodities trading, West Texas Intermediate Crude oil futures are down $2.28 or 2.47% at $89.91 a barrel.

Gold futures are up $7.80 or 0.19% at $4,058.00 an ounce, while Silver futures are up $0.721 or 1.24% at $58.775 an ounce.