12:17 PM EST, 01/08/2025 (MT Newswires) -- The Toronto Stock Exchange is up 22 points at midday, with most sectors broadly lower.

Healthcare, down 2%, is the biggest decliner, followed by telecoms, down 1%.

Info tech and financials, the sole gainers, are up 0.63% and 0.4%, respectively.

BMO in its morning note, said incoming U.S. President Trump gave an interview yesterday that touched on a variety of topics, including his plan to levy "substantial" tariffs on Canada and Mexico. BMO said later reports suggest he is considering calling a national economic emergency to implement new tariffs. He also reiterated his desire to make Canada the 51st state using "economic force".

Interestingly, BMO said, the November trade figures from both Canada and the U.S. were released just hours before. The gist is that the U.S. trade gap with Canada pales in comparison to the shortfall with a number of other trading partners, including the biggies (China, Euro Area, Mexico) but also countries like Vietnam and Japan.

Rosenberg Research in a note entitled "Early Morning with Dave' noted Justin Trudeau resigned as Prime Minister and closed down parliament and all government business until March 24 (Not the most ideal situation as the Trump team mulls over the idea of imposing a 25% broad-based tariff. "But such is politics.," it said.

"Try as he may to delay the inevitable, Justin Trudeau's lengthy tenure of failed policies across a broad front has cost his party dearly, but the good news for those of us who believe in capitalism is that Canada is soon to be led by a new leader bent on reviving business formation, developing a more reasonable fiscal and regulatory climate, and fostering productivity-led economic growth. We have been bearish on the Canadian economy and the loonie for some time, but we sense a positive inflection point ahead," the research added.

In a separate note, 'Breakfast With Dave' Rosenberg Research said "strong fundamentals are set to outperform price momentum heading into an economic environment rife with uncertainty."

It added: "The investment backdrop is more challenging now than at any other time in the past two years, with valuations trading in the top decile, stalled-out earnings revision momentum, weak earnings breadth, and heightened policy uncertainty. While momentum and sentiment can run for longer than commonly appreciated (the main story in 2024) the current environment necessitates a focus back on fundamentals in order to generate alpha (outperform) in a market that is frothy to say the least."

Wednesday's economic calendar is highlighted by the Minutes from the FOMC's December meeting at 2 pm ET.

There are no major data out for Canada today.