CALGARY – Better-than-expected results from Canada’s big banks helped propel the country’s main stock index to a more than 300-point gain Thursday, while U.S. markets were mixed.
“It’s earnings-driven for the most part,” said Brent Joyce, chief investment strategist at BMO Private Wealth, of the market moves on both sides of the border.
The S&P/TSX composite index was up 317.03 points at 31,477.57.
In New York, the Dow Jones industrial average was down 31.96 points at 47,850.94. The S&P 500 index rose 7.4 points at 6,857.12, while the Nasdaq composite was up 51.04 points at 23,505.14.
Reporting season for Canada’s Big Six banks wrapped up on Thursday, with all posting profits that beat analyst expectations for the fourth quarter. TD, BMO, CIBC, Scotiabank, RBC and National Bank brought in a collective $16.45 billion in profits for the period, up from $14.73 last year.
“The bank stocks globally have been solid performers on the year and it really does need the earnings to justify and then also over-deliver,” said Joyce.
“The share price is being rewarded and we would expect that to continue into 2026 as well.”
Shares in CIBC saw a more than four per cent jump on the TSX Thursday after it reported its results, while TD rose two per cent. BMO’s shares were off slightly after its quarterly report.
Joyce said one refreshing sign in the markets lately has been the strength smaller companies have been seeing relative to their heavyweight peers.
“It’s just a bit of a breather from the market darlings, the mega caps of the world,” he said.
“Other areas of the market that haven’t been garnering the headlines, that the investors have been paying a little bit less attention to are starting to fill in the in the void … which just makes for a much healthier market overall and I think sets us up for a healthy foundation to move into 2026.”
For the remainder of the year, Joyce said all eyes are expected to be on the central banks. He said he’s not expecting much in the way of rate changes for Canada, but that a quarter-point cut in the U.S. next week looks likely.
“We do expect the Fed has room to cut upwards of maybe three times over the next several quarters,” said Joyce.
On U.S. markets, discount store chain Dollar General Corp. rallied 14 per cent after reporting a stronger profit for the latest quarter than analysts expected. Hormel Foods Corp., meanwhile saw a 3.8 per cent gain after reporting a profit beat, thanks in part to strength in its Planters nuts and Jennie-O turkey offerings.
U.S. grocer The Kroger Co. dropped 4.6 per cent after it lowered the top end of its forecasted range for an important measure of revenue this year, while raising the bottom end by less.
The Canadian dollar closed at 71.67 cents US compared with 71.69 cents US on Wednesday.
The January crude oil contract edged up 72 cents US at US$59.67 per barrel, while the February gold contract was up US$10.50 at US$4,243.00 an ounce.
This report by The Canadian Press was first published Dec. 4, 2025.
With files from The Associated Press
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
