Markets Rise on Earnings Strength Despite Oil Price Jitters

Canadian and US stock markets rose on Thursday as investors digested fresh corporate earnings reports. The S&P/TSX composite index gained 172.06 points to close at 35,505.84.

The Canadian main stock index was boosted by firmer precious metals prices and strong earnings from companies like Bombardier's competitors in the basic materials sector. However, Bombardier itself weighed on the TSX after reporting a second-quarter profit of US$191 million, with its shares falling 7.9%.

In the US, Microsoft led the market with a 15.5% gain, its best day in nearly 18 years, after beating earnings expectations and reporting strong growth in its Azure cloud business. This was seen as a positive sign for investors who are concerned about AI spending eating into companies' cash flows.

Oil prices eased slightly on Thursday, with the September West Texas Intermediate contract falling to US$83.59 per barrel, down from US$87.46 the previous day.