Stocks Gain Nearly 100

Resource Stocks Power Surge

Equity markets in Canada’s largest centre recovered handsomely from several straight days of losses, shrugging off the effects of a Throne Speech from Parliament signaling several more months of heavy government spending.

The TSX leaped 95.15 points to end Thursday at 15,912.26.

The Canadian dollar regained 0.21 cents to 74.90 cents U.S., after falling near a seven-week low against the greenback earlier in the day.

Gold topped the leaderboard respecting gainers, with Kinross sprinting 70 cents, or 6.4%, to $11.70, while Iamgold added 28 cents, or 5.8%, to $5.09.

Among other resource stocks, First Majestic Silver gained 69 cents, or 5.3%, to $13.71, while MAG Silver rocketed $1.42, or 7.4%, to $20.66.

Among energy interests, Cenovus climbed 19 cents, or 3.7%, to $5.34, while Husky gathered eight cents, or 2.6%, to $3.21.

Health-care issues did not fare so well, though, as Aphria nodded 31 cents, or 5.2%, to $5.62, while Bausch Health Companies handed back 84 cents, or 4%, to $20.22.

Among tech concerns, Docebo Inc. faded 66 cents, or 1.6%, to $41.28, while CGI Inc, doffed $1.34, or 1.5%, to $89.68.

In utilities, ATCO shed 47 cents, or 1.2%, to $38.22, while Northland Power lost 40 cents, or 1%, to $38.55.

In the economic docket, Statistics Canada reported the Survey of Employment, Payrolls, and Hours as payroll employment, rose by 739,700, or 5.1%, in July.

The agency also said this figure followed an increase of 665,500 (or 4.9%) in June, and brought the total payroll employment change since February to a decrease of 1.9 million (or 11.3%).

ON BAYSTREET

The TSX Venture Exchange arrested its downward plunge, and resurfaced 9.27 points, or 1.4%, to 686.31.

All but three of the 12 TSX subgroups were gainers on the day, with gold soaring 2.3%, materials stronger by 1.9%, and energy surging 1.2%.

The three laggards were health-care, subsiding 2.4%, information technology, down 0.3%, and utilities, off 0.1%.

ON WALLSTREET

Stocks rose slightly on Thursday as tech shares recovered some of their recent losses while traders weighed the latest batch of economic data.

The Dow Jones Industrial Average gained 52.31 points to end Thursday to 26,815.44.

The S&P 500 gained 9.67 points to 3,246.59.

The NASDAQ ultimately gained 39.28 points to 10,672.27.

Apple picked up 1%, and Microsoft shares rose 1.3%, to lead tech higher. Alphabet shares gained nearly 1% and Amazon advanced 0.7%. Netflix was up 0.5% and Facebook advanced 0.2%.

So far in September the S&P 500 has declined 7.3%, while the Dow has shed 5.7%. The NASDAQ has been the relative underperformer, registering a loss of 9.4% as investors rotate out of Big Tech. Facebook, Amazon, Apple, Netflix, Alphabet and Microsoft are all down at least 9.9% in September.

Wall Street is also grappling with a lack of new fiscal stimulus, which several economists and the Federal Reserve argue is needed for the economic recovery to continue.

This lack of a stimulus bill led Goldman Sachs to slash its fourth-quarter GDP forecast to 3% from 6% on an annualized basis.

Some sources reported that Democrats are putting together a scaled-back aid package and plan to vote on it next week. The source said the bill would cost $2.4 trillion, which is well above what Republicans and the White House said they would agree to

Comments from President Donald Trump that he would not commit to a peaceful transfer of power should he lose the election appeared to hit sentiment, raising concern about a drawn-out election result.

The weekly report in claims highlights that job creation in the aftermath of the pandemic is stalling out, raising further fears about the shape of the U.S.’s return to normality.

Jobless claims rose 4,000 to 870,000, the U.S. Labor Department said Thursday, reflecting that slightly more Americans applied for state unemployment benefits in the week ended Sept. 19 than in the prior week.

However, the Census Bureau reported that new home sales in the U.S. totaled just over one million in August. Economists polled by Dow Jones expected a gain of 898,000.

Prices for the 10-Year Treasury gained, driving yields down to 0.67% from Wednesday’s 0.68%, Treasury prices and yields move in opposite directions.

Oil prices recovered 29 cents to $40.22 U.S. a barrel.

Gold prices regained $5.60 to $1,874.00 U.S. an ounce.