Canada stocks higher at close of trade; S&P/TSX Composite up 0.79%

Investing.com – Colombia stocks were lower after the close on Wednesday, as losses in the Financials, Investment and Public Services sectors led shares lower.

At the close in Colombia, the COLCAP declined 0.18%.

The best performers of the session on the COLCAP were Grupo de Inversiones Suramericana SA (BVC:SIS), which rose 2.89% or 1,580.00 points to trade at 56,180.00 at the close. Meanwhile, Grupo Nutresa SA (BVC:NCH) added 2.48% or 6,300.00 points to end at 260,000.00 and Bancolombia Pf (BVC:BIC_p1) was up 2.30% or 1,380.00 points to 61,480.00 in late trade.

The worst performers of the session were Grupo Energia Bogota SA ESP (BVC:GEB), which fell 4.06% or 130.00 points to trade at 3,070.00 at the close. Grupo Argos SA (BVC:ARG) declined 2.19% or 380.00 points to end at 17,000.00 and Organizacion Terpel SA (BVC:TPL) was down 0.88% or 160.00 points to 17,940.00.

Rising stocks outnumbered declining ones on the Colombia Stock Exchange by 1 to 0.

Shares in Grupo de Inversiones Suramericana SA (BVC:SIS) rose to 3-years highs; up 2.89% or 1,580.00 to 56,180.00. Shares in Bancolombia Pf (BVC:BIC_p1) rose to all time highs; gaining 2.30% or 1,380.00 to 61,480.00.

US coffee C for March delivery was up 0.79% or 2.90 to $371.65 . Elsewhere in commodities trading, US cocoa for delivery in March rose 5.80% or 341.00 to hit $6,223.00 , while the February Gold Futures contract rose 0.48% or 20.40 to trade at $4,256.60 a troy ounce.

USD/COP was down 0.52% to 3,837.45, while BRL/COP fell 1.06% to 702.51.

The US Dollar Index Futures was down 0.56% at 98.64.

Investing.com -- The S&P 500 closed higher Wednesday after the Federal Reserve cut interest rates for the third time this year, but signaled that the bar for further easing would be higher stoking uncertainty about the path ahead.

At 4:00 p.m. ET, the Dow Jones Industrial Average rose 497 points, or 1.1%, the S&P 500 index 0.7%, and the NASDAQ Composite gained 0.3%.

Fed’s cuts rates for third time, but divisions grow

The Federal Reserve on Wednesday lowered interest rates by 25 basis points for the third time this year, to a range of 3.5% to 3.75%.

At the press conference that following the rate decision, Fed chairman Jerome Powell said that the three cuts delivered this year have now pushed rates in a "range of plausible estimates of the neutral rate and leave it well positioned to determine the extent of further changes to rates based on incoming economic data."

In a sign of growing divisions, there were three dissents against the decision, with two in favor of pausing, and one preferring to cut by 50 basis points.

Trump to begin final round of Fed interviews - WSJ

Meanwhile, President Donald Trump is aiming to begin the final round of interviews for the next Fed Chair in the coming days, according to the Wall Street Journal.

Citing senior administration officials, the WSJ said Trump and some of his aides are scheduled to interview former Fed Governor Kevin Warsh on Wednesday, and meet with other candidates soon.

One of those will be Kevin Hassett, the White House economic adviser many reports have described as the frontrunner to replace Powell when his term at the helm of the Fed ends next year.

Oracle, Adobe earnings awaited

Beyond the Fed meeting, focus this week is also on earnings from cloud and chipmaking majors Oracle (NYSE:ORCL) after Wednesday’s close, for more cues on the AI trade.

Fueled by a partnership with ChatGPT-maker OpenAI, Oracle has transformed its image this year from a smaller player in the cloud business to an essential provider of the rented computing power needed to underpin AI models.

Adobe Systems (NASDAQ:ADBE) is also due to report its latest quarterly earnings after the closing bell on Wall Street.

Shares of the firm behind creative products like Photoshop and Acrobat have slumped by more than 21% so far this year, easily underperforming the tech-heavy Nasdaq Composite.

Elsewhere, AeroVironment (NASDAQ:AVAV) stock fell after the drone maker missed second-quarter earnings expectations and cut its outlook, while Cracker Barrel Old Country Store (NASDAQ:CBRL) stock slumped after the restaurant chain cut its sales outlook for its fiscal year, citing “unique and ongoing headwinds" as it struggles to recover from a poorly-received rebrand.

On the flip side, Chewy Inc (NYSE:CHWY) was slightly lower after the online pet retailer reported third-quarter results that exceeded analyst expectations, demonstrating strong profitability growth alongside solid revenue gains.

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Peter Nurse, Ambar Warrick contributed to this article

Investing.com -- Canadian aerospace and diversified industrial stocks are gaining attention from investors as defense spending and consumer trends create tailwinds for the sector. According to a recent report by RBC Capital Markets analyst James McGarragle, several companies are well-positioned to benefit from these dynamics. The report highlights three top stock ideas for 2026 based on growth potential and valuation.

Defense spending represents a significant growth driver for the Canadian aerospace industry, with the Canadian government’s 2025 federal budget including an $82 billion boost to defense spending over five years. Additionally, strong consumer spending in high-end segments continues to fuel demand in business aviation.

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Here are RBC’s top picks:

1. Bombardier (TSX:BBD.B)

RBC rates Bombardier as Outperform with a price target of CAD 263.00, up from CAD 230.00 previously. Despite the stock’s impressive 130% gain year-to-date, analysts believe it remains a compelling opportunity. The company yields approximately 6% on consensus 2026 free cash flow, which RBC considers attractive. Strong demand is evidenced by a robust 1.3x book-to-bill ratio, positioning Bombardier to achieve the high end of its free cash flow guidance with solid backlog visibility into 2028. Increased defense spending could accelerate the company’s $1-1.5 billion defense revenue target initially set for 2030. RBC projects Bombardier can compound free cash flow at greater than a low-teen CAGR well into the 2030s, supported by services growth, defense contracts, and continued strong business jet demand.

In a recent development, Moody’s upgraded Bombardier’s corporate family rating to Ba3, citing the company’s progress in reducing financial leverage, increasing earnings, and generating strong free cash flow.

2. Air Canada (TSX:AC)

RBC maintains an Outperform rating on Air Canada with a price target of CAD 25.00. While 2026 is expected to be a transition year with margin pressures from aircraft delivery delays, updated labor agreements, and rising airport infrastructure costs, RBC sees a compelling long-term opportunity. The airline’s free cash flow is projected to significantly improve in 2028 and 2029, representing estimated FCF yields of approximately 30% and 50%, respectively. Air Canada’s ability to reallocate capacity effectively amid weaker transborder demand demonstrates management’s execution capabilities. Cost control initiatives, including projected savings of $150 million for 2025, should help offset unit cost pressures resulting from slower capacity growth.

Air Canada reported a 2% increase in revenue for its second quarter of 2025, reaching $5.6 billion, which was driven by growth in its premium and cargo segments.

3. Exchange Income Corporation (TSX:EIF)

RBC rates Exchange Income as Outperform with a price target of CAD 94.00. The diversified holding company has exposure to meaningful long-term secular tailwinds across its subsidiaries. While investors recognize the company’s defense and Arctic sovereignty investment exposure through PAL and Canadian North, RBC believes the market underappreciates Exchange’s significant exposure to infrastructure and housing investment—both key items in the recent Canadian budget. Northern Mat and the Windows segment are well-positioned to benefit from these investments. Management has provided 2026 EBITDA guidance of $825-875 million, representing mid-teen growth, which RBC views as impressive given the weak industrial backdrop.

Exchange Income Corporation announced third-quarter 2025 revenue of $960 million, which surpassed analyst forecasts, while its earnings per share of $1.46 was slightly below expectations.

These three companies represent RBC’s top ideas in the Canadian aerospace and diversified industrials sector heading into 2026, with each offering unique exposure to defense spending increases and consumer demand trends.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Investing.com -- American International Group (NYSE:AIG) stock soared 6% Wednesday following a report that Chubb (NYSE:CB) had made an informal takeover offer for the insurance giant.

According to Insurance Insider, Chubb approached AIG with a takeover proposal, though Chubb has denied submitting any offer when contacted for comment. The report sent AIG shares sharply higher during the trading session.

Meanwhile, Chubb stock fell 2% on the news, as investors reacted to the possibility of a major acquisition that would significantly reshape the insurance landscape if it were to materialize.

Neither company has made an official statement regarding the reported takeover approach. AIG, which was at the center of the 2008 financial crisis and received a government bailout, has since restructured its operations and divested several business units.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.