The major indices are higher at midday. Private jobs data from this morning was weaker than expected, and possibly removes some pressure for interest rates to be raised. Now Wall Street awaits the August nonfarm payrolls report on Friday, another check on the labor market. Oil prices are climbing again, with crude oil at $90 per barrel. The yield on the 10-year note is at 4.80%.

The Royal Bank of Canada is one of Canada's largest banks. It is also one of the largest banks in the world, with a market capitalization of $289 billion. The company has 105,000 employees and some 1,300 banking branches in 29 countries.

For the past decade-plus, the performance record has favored growth stocks over value. Yet the tide may be changing. In 2025, value stocks and growth stocks had similar returns, with growth advancing 13.8% and value returning 13.6%. More than halfway through 2026, value stocks have climbed 16.8% while growth stocks have returned 5.7%. The post COVID-19 economy gave a lift to some of the cyclical companies (energy and regional banks), and value stocks outpaced growth stocks that year. While growth stocks led for a few years after that, history has shown other instances where value stocks have outperformed. Value stocks tend to be more resilient in times of market uncertainty and higher volatility as they are less likely to overreact to economic news. Another factor, in our view, has been the level of interest rates. If interest rates are high, discount rates will be high, and future profits will be worth less, creating an unfavorable environment for growth stocks. In any event, the value sector is the place to achieve income.

Royal Bank of Canada is one of the two largest banks in Canada, with around CAD 2.4 trillion in assets at the end of April 2026. It is a diversified financial services company, offering personal and commercial banking, wealth management, insurance, corporate banking, and capital markets services. The bank is concentrated in Canada and has dominant market shares. RBC also has wealth and capital market businesses in the US, UK, and other countries. RBC is a top 15 investment bank globally.