News From Us
We are pleased to announce the arrival of Diego P. Lapointe, MSc, within the team of Pratte Portfolio Management, as an analyst in investment strategies.
A young professional, Diego holds a master’s degree in finance from ESADE Business School (Barcelona), as well as a BBA in finance from HEC Montréal. Currently a Level II candidate in the CFA program, he has distinguished himself by remarkable analytical rigour and intellectual curiosity.
Before joining our team, Diego acquired solid experience at the Caisse de dépôt et placement du Québec (CDPQ) and at National Bank Investments, where he worked in asset allocation and systematic investment strategies. There he developed a data-driven approach, combining quantitative analysis and a fine understanding of global financial markets.
His lateral vision of asset classes and his ability to integrate advanced modelling tools will strengthen our capacity to offer high-performing and innovative investment solutions to our clientele.
The arrival of Diego is part of the continuity of our commitment to building a high-calibre team, combining expertise, innovation, and rigour.
Welcome to the team, Diego!
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Markets in Brief
Tuesday
• S&P/TSX: 28,615.62 (+0.18%, +51.17)
• Dow Jones: 45,295.81 (−0.55%, −249.07)
• S&P 500:6,415.54 (−0.69%, −44.72)
• Nasdaq: 21,279.63 (−0.82%, −175.92)
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Canadian Dollar
• CAD/USD: USD 0.7252 (−0.34% vs. USD 0.7277 Friday)
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Macroeconomic and Monetary Analysis
Difficult start of the month for Wall Street: American stocks fell in a context of rising bond yields and trade uncertainty. The yield on 10-year Treasury bonds rose toward 4.27% (4.23% Friday), while the 30 years briefly exceeded 4.97%. Higher yields compress multiples, which weighs more heavily on large technology stocks.
The seasonal factor also plays a role: September is historically a weaker month for stocks, a bias that many participants integrate as soon as the market resumes. On the cyclical side, the ISM manufacturing index signalled a contraction more marked than expected, several companies mentioning conditions disrupted by tariffs and more hesitant demand. This cyclical weakness leaves the door open to a first-rate cut by the Federal Reserve in mid-September, subject to key data of the week, notably the employment report on Friday.
In Canada, the TSX outperformed thanks to the Materials sector, supported by the strength of precious metals. Gold (Dec.) reached a new high at USD 3,592.20 (+2.16%), reflecting a demand for safe-haven assets. WTI oil (Oct.) rose to USD 65.59 (+2.47%), but Canadian Energy did not fully benefit, most sectors of the TSX having ended lower in the wake of the United States (exceptions: Health Care and Materials).
Internationally, Europe fell (DAX −2.3%), while Asia closed mixed (Seoul +0.9%, Hong Kong −0.5%).
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Stocks in Brief
• Nvidia (NVDA): −2.00% — profit taking on AI leaders as the rise in yields weighs on growth valuations.
• Amazon (AMZN): −1.60% — consolidation of mega caps at the start of September, in a context of cautious rotation.
• Apple (AAPL): −1.00% — decline in line with the broad technology segment.
• Constellation Brands (STZ): −6.60% — slowdown in premium beer sales and downward revision of the annual outlook.
• Kraft Heinz (KHC): −7.00% — announcement of a split into two entities (ambient meals on one side; cold cuts/cheeses/snacks on the other).
• PepsiCo (PEP): +1.10% — shareholder pressure from Elliott with proposals to accelerate growth and improve performance.
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Sector Performance
• Canada (S&P/TSX): Materials leading (gold exposure); Health Care in positive territory; the rest of the sectors down, Energy retreating despite firmer crude.
• United States (S&P 500): Information Technology and other growth segments down under the effect of high yields; Consumer Staples mixed (KHC sharply down, PEP up); Energy firmer supported by oil; Industrials under pressure after the ISM manufacturing.
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Wednesday
• S&P/TSX: 28,751.36 (+0.47%, +135.74)
• Dow Jones: 45,271.23 (−0.05%, −24.58)
• S&P 500:6,448.26 (+0.51%, +32.72)
• Nasdaq: 21,497.73 (+1.03%, +218.10)
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Canadian Dollar
• CAD/USD: USD 0.7250 (vs. USD 0.7252 the day before)
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Macroeconomic and Monetary Analysis
American stocks rebounded, driven by technology and a retreat in yields after weaker JOLTS data (job openings at the lowest since September 2024). The 10-year bond fell toward 4.22% (against 4.26% Tuesday), loosening pressure on growth stocks and consolidating the idea of a Fed rate cut later this month, subject to the August employment report expected Friday.
On the regulatory side, the decision of a Washington court in the antitrust case against Google was interpreted as clearly less severe than anticipated: no divestiture of Chrome, but prohibition of exclusivity agreements for search and obligation to share certain search data. This framework, which echoes the August 2024 judgment recognizing an abuse of dominant position via distribution agreements, dispelled a breakup scenario and supported appetite for mega caps. Apple also benefits from the maintenance of the possibility to preload Google Search on iPhone, an important revenue stream for its services.
In Canada, the rise of the TSX was supported by the technology and materials sectors, in the wake of the rise of gold (Dec.) at USD 3,635.50 (+1.21%). Conversely, the decline of WTI (Oct.) to USD 63.97 (−2.47%) weighed on the energy sector as well as on some bank stocks sensitive to the economic cycle. The general climate nevertheless remains marked by uncertainties surrounding tariff and budgetary policies, which could maintain a high-risk premium on the long end of the yield curve.
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Stocks in Brief
• Alphabet (GOOGL): +9.14% — antitrust decision “less punitive” (no divestiture of Chrome), limits to exclusivity and increased data sharing; relief on regulatory risk.
• Apple (AAPL): +3.81% — benefits from the maintenance of preloading Google Search on iPhones, supporting services revenues.
• Macy’s (M): +20.68% — profit and revenue above expectations, best key sales momentum in three years; raised outlook.
• Campbell Soup (CPB): +7.22% — earnings per share above expectations in Q4 of the shifted fiscal year; caution on the potential impact of tariffs.
• Dollar Tree (DLTR): −8.37% — Q3 guidance judged disappointing, with tariff calendar effect likely to weigh.
• American Bitcoin (ABTC): +16.5% — first very volatile session after the merger with Gryphon Digital Mining, with multiple trading halts.
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Sector Performance
• Canada (S&P/TSX): Technology and Materials leading (firm gold); Energy down with the decline of crude; Financials weaker in a hesitant macro context.
• United States (S&P 500): Information Technology dominating (regulatory relief + easing rates); Energy and banks weaker; Consumer Staples mixed depending on sensitivity to tariffs and pricing power.
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Thursday
• TSX: +0.57% at 28,915.89
• S&P 500:+0.83% at 6,502.08 (new closing record)
• Nasdaq: +0.98% at 21,707.69
• Dow: +0.77% at 45,621.29
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Evolution of the Canadian Dollar
The CAD lost ground, trading at 72.31¢ US.
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Macroeconomic and Monetary Analysis
The August ADP job creation in the United States came out at 54,000 and initial jobless claims rose to 237,000, confirming a gradual slowdown of the labour market. Markets favour a Fed rate cut on September 17, while the easing of yields supported the indices. The ISM services nevertheless surprised on the upside (52.0), signalling an expansion of the sector.
In Canada, the merchandise trade deficit shrank to C$4.9B in July. On the commodities side, WTI (Oct.) ended near US$63.48 a barrel and gold (Dec.) around US$3,606.70 an ounce.
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Stocks in Brief
• American Eagle Outfitters (AEO): +38% — profit clearly above expectations.
• Salesforce (CRM): −5% — pullback post-results on guidance judged cautious.
• Amazon (AMZN): +4% — renewed appetite, driven by the AI ecosystem (Anthropic) and the cloud.
• Shopify (SHOP): +3.8% — good session in Toronto, in the wake of strength in the tech sector.
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Sector Performance
• United States: Technology leading; Consumer discretionary solid, helped by easing rates.
• Canada (TSX): Information Technology up more than 2%; Base Metals on pause (≈ −1%).
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Quarterly Results
Broadcom (AVGO) — Broadcom is still at the centre of the AI boom. Demand from major cloud players for custom chips and high-speed networking keeps accelerating. The company delivered a strong quarter with about $16B in revenue, including $5.2B tied to AI, up more than 60% year-over-year. Management is guiding to $6.2B next quarter and announced a $10B firm order from a large customer for custom accelerators. New Tomahawk Ultra and Jericho chips are becoming key pieces of AI data centres. CEO Hock Tan confirmed he will remain at the helm for years to come, a signal of continuity investors welcomed. The stock opened the session up roughly 15%.
Lululemon (LULU) — The quarter shows a brand that’s still profitable but under pressure. North American sales were soft (−4% in the Americas, barely positive overall). The end of the de minimis tariff exemption added about $240M in extra costs, squeezing margins. Management playbook: shorten product cycles, bring in more new styles (35% planned for spring vs. 23% this year), and re-energize the assortment. The message to investors is clear: more agility, faster execution, and tighter margin control, even with limited short-term visibility. Shares opened the day down about 15%.
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Friday
• S&P 500:+0.4% (new intraday record)
• Nasdaq: +0.6% (new record)
• Dow Jones: +0.3% (new high)
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Evolution of the Canadian Dollar
The CAD is moving slightly lower against the greenback after weaker-than-expected Canadian employment data.
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Macroeconomic and Monetary Analysis
United States — The August report shows +22,000 job creations (vs. 75,000 expected) and an unemployment rate at 4.3%. This moderation of the labour market reinforces the scenario of a Fed rate cut on September 17 (−25 bps favoured, −50 bps now considered), supporting the new highs of the indices.
Canada — Statistics Canada indicates an increase in unemployment to 7.1% in August with a net loss of 66,000 jobs (consensus: +10,000, unemployment at 7.0%). Detail: −60,000 part-time jobs, −6,000 full-time. By industry: professionals/sciences/tech −26,000, transport/warehousing −23,000, construction +17,000. This weaker picture accentuates the dovish bias ahead of the Bank of Canada decision on September 17.
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Stocks in Brief
• Broadcom (AVGO): +15% at the open — results above expectations raised Q4 guidance (US$17.4B) and firm US$10B order for customized AI chips, boosting the revenue trajectory related to AI.
• Lululemon (LULU): −15% at the open — sharp lowering of annual guidance and tariff impact estimated at ~US$240M on gross margins, despite Q2 EPS above consensus.
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Sector Performance
Technology leads the session (semiconductors in front, driven by AI); Consumer discretionary weaker, penalized by apparel. Rate-sensitive sectors benefit from monetary easing expectations.
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Conclusion
Week dominated by records on Wall Street, driven by tech (Broadcom surge) and a weaker US jobs report, which strengthens bets of Fed easing. In Canada, the labour market is deteriorating (−66,000 jobs, unemployment 7.1%), lending credence to a more accommodative bias from the BoC. Surveys point to a manufacturing sector in contraction (ISM 48.7) but services recovering (ISM 52.0). The antitrust case targeting Google is heading toward limited remedies (no divestiture of Chrome), reducing regulatory risk on megacaps.
Positioning: core of quality growth (AI infrastructure, essential software) balanced by shock absorbers (gold, cash) and disciplined risk management.
Upcoming decisions: Fed (FOMC) — September 16–17, 2025 (announcement on the 17th). Bank of Canada — September 17, 202
