Tech, Basic Materials Weigh on TSX Composite; US Markets Rise Amid Earnings Reports

Canadian and U.S. markets diverged on Friday as investors digested earnings reports and economic data. The S&P/TSX composite index fell 279.70 points to 35,226.14, dragged down by technology and basic materials sectors.

Anish Chopra, managing director with Portfolio Management Corp., said the market is being pulled between stronger growth and a potential higher rate environment. He noted that GDP growth and corporate earnings are supportive, but inflation concerns remain due to higher oil prices and bond yields.

Canadian earnings have been broadly positive in the second quarter, but specific stocks have faced challenges. Telus Corp. lost 11.27% after cutting its dividend by more than half and reporting a loss in its latest quarter. Chopra said this signals pressure on free cash flow and debt concerns for the company.

In contrast, U.S. markets rose, with the Dow Jones industrial average up 276.97 points at 52,485.03. Amazon led the way, surging 15.3% after reporting stronger profits than expected, while Apple dropped 7.4% despite beating earnings forecasts due to a supply crunch in components.