The Daily Beat - September 3, 2025 📈

There were no S&P 500 earnings reactions on Tuesday, but Canadian stocks continue to capture our attention.

In a Daily Beat column last week, we discussed the Canadian financials' strong performance following their earnings reports. 

The Big 5 banks all surged higher together, and their breakouts underscored a powerful message about the health of Canada’s market leadership.

Now the spotlight is shifting from financials to energy.

Canadian energy stocks are catching fire. 

The setups that have been building for years are finally resolving higher, and the timing could not be better. 

Investors are rotating into oil and gas, sparking major breakouts in some of the biggest names.

One that has our attention is Enbridge $ENB.

Enbridge is a $105B Canadian pipeline operator that has quietly been transforming its business model. 

In its most recent earnings report, the company highlighted a backlog of accretive projects tied to powering data centers. The most notable project is one with Meta Platforms $META in San Antonio, Texas, where they are helping to supply the infrastructure behind Meta’s growing AI-driven data center operations.

This is no longer just a pipeline story. It's positioning itself as an AI energy stock.

The charts don't lie:

Enbridge is decisively resolving a textbook decade-long bearish-to-bullish reversal pattern. It's one of the cleanest base breakouts in the market.

There aren't many energy stocks that look this good.

So long as ENB holds above 47, the path of least resistance is higher for the foreseeable future.

Their last earnings report is fueling this breakout:

After spending June and July consolidating, Enbridge surged higher in early August on a gap-and-go move sparked by its last earnings report. 

Buyers have followed through ever since, confirming the initial post-earnings move. 

The market is telling us loud and clear that it loved what this company said in its last quarterly readout.

We're listening, Mr. Market.

Canada is not just about banks... 

Energy stocks are joining the leadership ranks, and Enbridge is leading the charge. 

A decade-long base is resolving higher, supported by one of the most powerful secular growth themes in the world. 

Happy Hump Day

-The Beat Team