TSX hits record high after Shopify's strong earnings
By Nikhil Sharma
(Reuters) -Canada's main stock index hit a record high on Tuesday, boosted by the technology sector that offset broader market losses as Shopify (NYSE:SHOP )'s shares rose on upbeat quarterly results.
The S&P/TSX composite index was up 175.35 points, or 0.71%, at 24,964.63.
The information technology sector rose 6.9% to a record high as Shopify jumped 24.8% to its highest since January 2022.
Shopify forecast fourth-quarter revenue growth above estimates, as its focus on employing AI-powered tools attracted more merchants to its e-commerce services ahead of the holiday season.
In contrast, the materials sector fell 1.4% as gold prices dipped 1% to their lowest levels in nearly two months after the U.S. dollar soared, while lower copper prices also weighed. [GOL/] [MET/L]
At least 10 sectors on the index nursed losses, with technology being the only outlier.
"We are seeing growth in stocks like Shopify," said Shiraz Ahmed, senior portfolio manager and founder of Sartorial Wealth at Raymond (NS:RYMD ) James.
"I would call this a little bit of a contrarian rally here," said Ahmed, adding the TSX has lagged its U.S. peers on a yearly basis and that Canada doesn't have the robustness relative to many other markets around the world.
Wall Street's main indexes were subdued as investors stepped to the sidelines after a post-election rally. [.N]
U.S. President-elect Donald Trump's proposed policies, including tariffs on all imports from key trading partners, have concerned investors globally.
Canada, which sends the majority of its crude exports to the United States, will face a major economic impact if there is a slowdown in energy trade.
However, Trump's suggested tax cuts and looser regulations broadly boosted equities since the election results last week.
Attention has shifted to the U.S. inflation data due Wednesday, which will help gauge the Federal Reserve's interest-rate path, and to Fed Chair Jerome Powell's speech on Thursday.
Source: Investing.com