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Canadian wholesale trade grew by a healthy 0.8 percent in July from June, helped by strong business investment in machinery and equipment, Statistics Canada said on Tuesday.
After removing the effects of the currency's appreciation against the U.S. dollar, which lowered prices for imported goods sold by wholesalers, sales rose 1.5 percent.
The July sales matched market expectations. The agency revised downward its June numbers to show flat sales versus the 0.2-percent gain initially reported.
The machinery, equipment and supplies sector registered the biggest increase in dollar terms in July, climbing 2.1 percent. Business investment has lagged other indicators during Canada's economic recovery but policy makers have been heartened by recent signs investment is intensifying.
Personal and household goods and motor vehicles and parts also showed big gains.
Inventories rose by 0.3 percent and the inventory-to-sales ratio slipped to 1.17 from 1.18 in June.
All the figures are seasonally adjusted.