Oil Production Hikes Spell Rise in Stocks

Cenovus, TORC in Focus

Canada's main stock index rose on Friday, boosted by the energy sector that climbed after the Organization of the Petroleum Exporting Countries agreed on a modest increase in oil production.

The S&P/TSX Composite Index popped 142.67 points greet noon at 16,477.82, after setting an all-time record close on Thursday.

The Canadian dollar let go of 0.1 cents to 74.99 cents U.S.

Top boosts to energy were shares of Suncor Energy, climbing $1.68, or 3.2%, to $53.87, and Canadian Natural Resources, gaining $2.31, or 5.5%, to $44.25

Top advancers on the TSX were shares of oil and gas producers Cenovus Energy, up 82 cents, or 6.7%, to $13.06, and TORC Oil & Gas Ltd, adding 43 cents, or 6.3%, to $7.23.

Top decliners on the TSX were shares of BRP Inc fell $2.59, or 4%, to $62.69, after National Bank of Canada downgraded the stock.

Another big percentage loser was The Stars Group, down $2.14, or 4.1%, to $49.60, after launching a senior notes offering.

On the economic slate, Statistics Canada reported Friday that the consumer price index for May rose 2.2% on a year-over-year basis, matching the increase in April. On a seasonally-adjusted monthly basis, CPI was up 0.1% in May.

Elsewhere, following three consecutive monthly increases, retail sales in April declined 1.2% to $49.5 billion. The decrease was primarily due to lower sales at motor vehicle and parts dealers.

The decline in retail sales in April, combined with flat inflation figures for May, drove the Canadian dollar to a year-long low and cut expectations of an interest rate increase next month.


The TSX Venture Exchange regained 2.04 points to 757.37

Eight of the 12 TSX subgroups were positive, with energy towering 4.1%, while gold hiked 1.4%, and materials climbed 1.3%

The four laggards were weighed most by health-care, down 1.7%, information technology, off 0.7%, and real-estate, lower by 0.04%.


Stocks traded higher on Friday as investors tried to shake off jitters concerning trade tensions between the U.S. and China, with bank and energy shares rising.

The Dow Jones Industrials gained 167.37 points to 24,629.07, with Chevron and Exxon Mobil as the best-performing stocks in the index.

The Dow closed lower on Thursday for the eighth day in a row. If the 30-stock index falls again, it would post its longest losing streak dating back to 1978.

The S&P 500 recovered 12.61 points to 2,762.37, with energy, materials and telecommunications outperforming.

The NASDAQ fell 6.32 points to 7,706.37, as tech shares fell.

General Motors and Boeing — both companies that do a lot of business outside of the U.S. — erased earlier gains to trade slightly lower. Caterpillar also traded below its highs of the day.

Bank stocks rose slightly on Friday after the Federal Reserve determined they have enough capital to return to shareholders even after a worst-case stress test. Morgan Stanley, Wells Fargo and Goldman Sachs all ticked higher.

Markets around the globe have been on a roller-coaster ride this week as tensions surrounding a tit-for-tat trade dispute between the U.S. and China continue to escalate. Entering Friday's session, the Dow, S&P 500 and NASDAQ were all down for the week.

OPEC ministers struck a deal regarding oil production levels in their countries, according to a source, sending crude prices higher. Some media reported the cartel agreed to boost output by one million barrels per day. However, analysts say the increase will likely fall between 600,000 and 800,000 barrels per day as some OPEC members will not be able to sufficiently ramp up crude production.

Energy stocks Chevron and Exxon Mobil both rose more than 2%.

On Monday, President Donald Trump requested the United States Trade Representative identify $200 billion worth of Chinese goods for additional tariffs at a rate of 10%. Those tariffs followed levies announced by both nations last week. Consequently, Beijing stated that it would deliver its own set of counter measures, if required.

But media reports circulated Friday that some White House officials are trying to restart talks with China in order to avoid a full-blown trade war.

Prices for the benchmark for the 10-year U.S. Treasury lost a bit of ground, raising yields to 2.91% from Thursday’s 2.9%. Treasury prices and yields move in opposite directions.

Oil prices picked up $2.49 to $68.03 U.S. a barrel.

Gold prices took on 60 cents to $1,271.10 U.S. an ounce.