TSX falls 0.07% as materials sector drops 2.4% in Toronto
Key Facts
The S&P/TSX Composite fell 0.07% to 36,238.91 points at 10:20 a.m. ET on October 29, with the materials sector leading declines on the Toronto Stock Exchange. The sector, which includes mining companies, fell 2.4% in morning trading, according to Reuters via MarketScreener. Mining stocks weakened as gold prices retreated after U.S. inflation data, alongside disappointing quarterly results from some companies. The broader index's decline remained limited at the time of the reading, as losses in materials were offset by gains in other sectors. The inflation data affected the Canadian market through weaker gold prices, while company results added direct pressure on the sector.
Gold stocks were among the biggest decliners: Alamos Gold fell 8.3% after the company missed third-quarter earnings estimates. Kinross Gold also fell 5% after its quarterly revenue declined 2%. The moves showed how the metal's retreat and company results combined to weigh on mining stocks. Losses were not confined to the sector: Allied Properties fell 22.3% after reporting a 6% decline in third-quarter rental revenue. In contrast, Bausch Health Companies jumped 25.5% after beating third-quarter estimates and raising its annual outlook.
Pressure extended to the technology sector, which fell 1% after Alphabet reported disappointing search advertising revenue, alongside an increase in cash spending tied to accelerated AI investment, according to Reuters via MarketScreener. On the other hand, health care rose 5.5% and financials gained 1.1%, limiting the index's losses. Investment adviser Alan Small cited bank performance and elevated oil prices as factors supporting the market. He said: "Banks have performed well so far, and oil prices have remained elevated, but the market is likely to trade in a fairly steady range for the rest of the year." The contrast between losses in mining and technology and gains in financials and health care underscored the divergence in sector performance during the morning session.
In the United States, Bureau of Economic Analysis data showed that the headline personal consumption expenditures price index rose 0.5% in September from the previous month, compared with 0.3% in August, while the core index, which excludes food and energy, increased 0.3% month over month. Year over year, headline inflation reached 3.6% in September, up from 3.4% in August. The September data were released on October 29, a day after the Federal Reserve kept its target interest rate range at 3.75%-4.00%. The central bank said inflation "remains elevated." An Associated Press report attributed much of the increase in inflation to higher gasoline prices, alongside increases in services including shipping, hotels and utilities between August and September.
The price figures came as the U.S. economy grew at an annual rate of 3.4% in the third quarter, exceeding second-quarter growth of 2.2%, according to an Associated Press report. The inflation data strengthened economists' expectations of a U.S. rate increase in December, while the CME FedWatch tool showed markets pricing in a roughly 84.6% chance of a hike that month, according to Reuters via Investing.com. The Bureau of Economic Analysis is scheduled to release its October personal income and outlays report on November 25, 2026, at 8:30 a.m. ET. The upcoming release is among the indicators to watch for the path of prices and spending after the September reading. In the Canadian market, Small said trading was likely to remain fairly steady for the rest of the year, citing bank performance and elevated oil prices.