In the markets: Markets Climb on Interest Rate Optimism
Plus: Ferrero buys Kellogg; Delta posts profit; U.S. jobs fall to lowest in three months.
Canada Stock Digest - July 10, 2025
Market Overview
S&P/TSX Composite Index: Closed at 26,972.30 CAD, down 78.60 points or 0.29% for the day.
S&P/TSX Venture Composite Index: Closed at 757.53 CAD, up 2.28 points or 0.30% for the day.
NASDAQ Composite: Closed at 20,611.34 USD, up 10.24 points or 0.05% for the day.
Dow Jones Industrial Average (DJIA): Closed at 44,458.30 USD, down 370.23 points or 0.83% for the day.
S&P 500: Closed at 6,263.26 USD, down 16.09 points or 0.26% for the day.
Stock & Market News
Stocks Climb on AI and Rate-Cut Optimism, Unfazed by Trump’s Tariff Threats: Global equities ticked higher as investors bet on central bank easing and AI gains, shrugging off President Trump’s looming tariff announcements. The Globe and Mail
Wall Street Sluggish Start as Delta Shares Soar: U.S. futures were subdued even as Delta stock jumped 8% on better-than-expected earnings. BNN Bloomberg
Analyst Upgrades and Downgrades: Thursday’s action was dominated by renewed optimism in Canadian telecoms as Desjardins and Canaccord both lifted their Rogers and Quebecor targets (to C$49/C$48 for Rogers and C$44/C$43.25 for Quebecor), with Desjardins also nudging Cogeco to C$74 while maintaining Telus at C$25 and BCE at C$39. In Industrials & Transportation, Scotia downgraded Mullen Group and TFI International to Sector Perform (cutting their targets to C$16 and C$140) but reiterated CP KC as an Outperform with its target raised to C$120. TD Cowen trimmed its ATS target to C$49 on CEO turnover, CIBC downgraded Mullen to Neutral at C$15 and hiked Bombardier to C$167, Cargojet to C$142 and TFI (U.S.) to US$110, while NBF raised Kraken Robotics to C$4 post $115M equity raise. BMO lifted Aritzia to C$84 and Groupe Dynamite to C$33 on strong web traffic, NBF’s Shine set Thomson Reuters at C$300 ahead of Q2, JPMorgan downgraded Lundin Mining to Neutral at C$15.60, Barclays upped TMX to C$58, Piper Sandler and BMO raised Microsoft to US$600/US$550, Piper also made Oracle Overweight at US$270, and Jefferies and Barclays both lifted BlackRock to US$1,210/US$1,220. The Globe and Mail
Ferrero Agrees to Buy Kellogg for US$22 Billion: Ferrero will acquire WK Kellogg Co. in an all-cash deal valuing the cereal maker at about US$22 billion, expanding its snack portfolio. The Globe and Mail CNBC
Delta Air Lines Posts 15% Profit Increase, Cites Capacity Cuts: Delta’s Q2 profit rose 15% year-over-year after trimming capacity and boosting yield, and management raised its full-year guidance. The Globe and Mail CNBC
7-Eleven Overseas Profits Surge Thanks to Couche-Tard Acquisition: Profits at 7-Eleven’s international operations jumped 25% after the company integrated Circle K following Couche-Tard’s takeover. The Globe and Mail
Hamilton Hit by $1.2M Cyber Scam Targeting Municipal Employees: City staff fell victim to a phishing attack that resulted in fraudulent payroll withdrawals. CBC
Pentagon to Become Largest Shareholder in MP Materials: The U.S. Department of Defense will acquire a 15% stake in rare-earth magnet producer to secure strategic mineral supply. CNBC
Space Startup Varda Medicine Reenters Orbit to Manufacture Drugs: Varda Medicine launched its second orbital manufacturing mission, aiming to produce high-purity pharmaceuticals in microgravity. CNBC
Cineplex June Box Office Revenue Hits C$51.8M, Slightly Above Last Year: Canadian cinemas saw a small boost from domestic releases and early summer blockbusters. BNN Bloomberg
Chevron Implements Texas Layoffs as Part of Global Workforce Reduction: The energy giant cut 1,200 jobs at its Houston offices amid a company-wide cost-saving program. The Deep Dive
Economic News
Canada Seeks Southeast Asia Trade Deal to Blunt Trump Tariffs: Ottawa is negotiating a comprehensive pact with ASEAN countries to diversify export markets. Bloomberg
Canada Launches Sweeping Review to Cut Federal Red Tape: The federal government initiated a major process to streamline regulations and reduce compliance costs by $2 billion. The Deep Dive
U.S. Jobless Claims Fall to 210,000, Lowest in Three Months: Weekly initial unemployment claims decreased by 8,000 to 210,000, indicating continued strength in the labor market. The Globe and Mail
U.S. Reports 33% Drop in Car Trips by Canadians as Summer Travel Starts: Cross-border vehicle traffic fell sharply amid stronger Canadian dollar and lingering tariffs. Bloomberg
Weak Condo Market Forces Move-Up Buyers Into Tough Choices: With high rates and tight inventory, many potential buyers are delaying upgrades or reconsidering suburban alternatives. BNN Bloomberg
Copper Traders Pivot to Chinese Buyers Ahead of U.S. Tariffs: Market participants are lining up Asian counterparties as U.S. import duties loom on copper shipments. BNN Bloomberg
Montreal Home Sales Up 5% in June as Prices Rise 7%: The city’s housing market saw a modest rebound in sales, with the median price reaching $515,000. BNN Bloomberg
World News & Politics
Rhode Island Court Hears Challenge to Birthright Citizenship: A lawsuit seeking to end automatic U.S. citizenship for babies born to non-citizen parents opened in Providence, with national implications, and was turned down by the Judge on the case. CNN
Garden Hill First Nation Evacuated as Wildfires Advance in Manitoba: Thick smoke and shifting winds forced the evacuation of over 1,200 residents due to fast-moving wildfires. CBC
Flooding at Camp Mystic Enters Fifth Day of Rescues in Texas: Rescue teams continued evacuations at the flooded summer camp as water levels rose, stranding dozens of campers and staff, with death toll climbing and 160 still missing. CNN
Wimbledon Women’s Semifinals: Live Updates: Top seeds clash in back-to-back matches, with Cornet upsetting a favourite and the other semifinal still in progress. CNN
Los Angeles Tunnel Collapse Traps Commuters Underground: A newly built subway tunnel partially collapsed during testing, injuring multiple workers and halting service. CNN
PSG Defeats Real Madrid to Win Club World Cup Final: Paris Saint-Germain claimed its first Club World Cup title with a 2–1 victory over Real Madrid in Saudi Arabia. CNN
Teen Charged With Attempted Murder After Quadeville Attack: A 17-year-old has been charged after allegedly carjacking and stabbing a teenage girl in rural Ontario. CBC
Economic Events
Friday Un/Employment Rate
Recent Earnings
TSX
Richelieu Hardware (RCH)
Revenue reported at 512.04 MCAD, estimated at 515.55 MCAD
EPS reported at 0.41 CAD, estimated at 0.42 CAD
US Markets
Delta Air Lines, Inc. (DAL)
Revenue reported at 15.51 BUSD, estimated at 15.46 BUSD
EPS reported at 2.10 USD, estimated at 2.06 USD
Fun Fact
🍌 Did you know that bananas glow bright blue under a black light? This happens because of their high potassium content, which fluoresces when exposed to ultraviolet light. It’s a fun science party trick that turns your fruit bowl into a neon display.
Investment Tip
🧵 Cointegration spread trading is a precision strategy where you identify two stocks whose price histories move together over the long term—even if they drift apart in the short term. When their price spread widens beyond historical norms, you short the richer one and go long the cheaper, betting on mean reversion. It requires statistical analysis and diligent risk management, but when executed well, it delivers low-volatility returns uncorrelated to the broader market. Think of it as stitching two mismatched socks back into perfect pairs—subtle work, but highly rewarding.
Have a great trading day! 😊
Disclaimer: The information provided in this newsletter is for educational purposes only and does not constitute financial advice. Always consult with a financial advisor before making investment decisions.