“Up” seemed the only direction for equity markets throughout North America Thursday, with indices at closing levels they’d never known before.
The TSX Composite Index leaped 228.5 points to close Thursday to 29,407.80, investors expressing relief over the immediate future of interest rates.
The Canadian dollar progressed 0.15 cents to 72.30 cents U.S.
In the industrial sector, Aecon Group grabbed $2.05, or 9.4%, to $23,82, while Atkins-Realis leaped $7.59, or 7.9%, to $103.85.
Consumer discretionary stocks were also in the green after Magna International rose $1.30, or 2.1%, to $64.81.
The Canadian auto parts supplier said on Thursday it had appointed Philip D. Fracassa as its new Chief Financial Officer.
Elsewhere in the sector, Restaurant Brands charged ahead $1.30, or 2.1%, to $64.81.
Real-estate stocks took their cue from Dream Industrial REIT units, which climbed 22 cents, or 1.8%, to $12.48, while shares in FirstService surged $4.46, or 1.6%, to $288.17.
Weighing things down was Paramount Resources, off 50 cents, or 2.4%, to $20.07, while Parex Resources lost 31 cents, or 1.8%, to $16.85.
In consumer staples, Empire Company dawdled 56 cents, or 1.1%, to $50.98, while Maple Leaf Foods gave over 22 cents to $35.91.
Utilities lost out, too, as Boralex fell 43 cents, or 1.5%, to $27.43, while Transalta Corp. shares dipped 15 cents to $17.43.
ON BAYSTREET
The TSX Venture Exchange acquired 8.24 points, or 1%, to 875.77.
All but three of the 12 subgroups were positive, led by industrial stocks, up 1.5%, consumer discretionary issues, ahead 1.3%, and real-estate stocks, gaining 1.1%.
The three laggards were energy, sinking 0.5%, while consumer staples slid 0.2%, and utilities inched back 0.1%.
ON WALLSTREET
Stocks rose on Thursday as traders anticipated that the latest reading of a key consumer inflation gauge won’t stand in the way of the Federal Reserve lowering its benchmark interest rate next week.
The Dow Jones Industrials soared 616.87 points, or 1.4%, to end the day at a lofty 46,107.79.
The S&P 500 gained 55.41 points to 6,587.45.
The NASDAQ index rocketed 157.01 points to 22,043.08.
All three major averages scored new intraday all-time highs in the trading day and closed at record levels.
It was a confusing batch of numbers, with the consumer price index reading for August coming in hotter than expected on a monthly basis but in line with expectations on an annual basis.
The CPI reading showed an increase of 0.4% for the month, according to the Bureau of Labor Statistics, higher than the 0.3% that economists polled by Dow Jones were expecting. However, the index recorded 2.9% on a 12-month basis, as expected.
Additionally, so-called core CPI, which excludes volatile food and energy, increased 0.3% in August and 3.1% from a year ago. Both were in line with the Dow Jones forecasts.
The report comes a day after the producer price index showed an unexpected decline of 0.1% on the month. The PPI rose 2.6% on a 12-month basis.
Also on Thursday, weekly jobless claims saw a surprise jump. The figure for the week ended Sept. 6 increased 27,000 from the previous period to a seasonally adjusted 263,000. That’s more than the 235,000 that was penciled in.
Traders still generally expect that the Fed will cut rates by a quarter percentage point on Sept. 17.
Thursday’s gain was broader than recent sessions, with banks like JPMorgan and consumer names like Walmart in the green on expectations for lower rates.
Prices for 10-year Treasury eked up, lowering yields to 4.02% from Wednesday’s 4.04%. Treasury prices and yields move in opposite directions.
Oil prices dropped $1.44 to $62.23 U.S. a barrel.
Gold prices sagged $6.10 to $3,675.90 U.S. an ounce.
