Toronto Posts 11th-Straight Upward Session

Techs, Discretionaries Star

With apologies to Sonny and Cher, the beat goes on, especially with regards to rampaging North American stock index. Strength from tech and consumer stocks provided big enough shoulders on which the rest of the market could climb Friday, as markets in Toronto gained ground for the 11th straight time.

The S&P/TSX Composite Index grew 92.61 points to conclude Friday and the week at 15,303.83. The index has gained 980 points since the start of 2019.

The Canadian dollar jumped 0.03 cents to 75.32 cents U.S.

Among tech concerns, BlackBerry prospered 20 cents, or nearly 2%, to $10.40, while Constellation Software climbed $16.92, or 1.8%, to $938.78.

In the consumer discretionary sector, Canada Goose Holdings gained 82 cents, or 1.2%, to $66.76, while Magna International acquired $1.13, or 1.7%, to $67.68.

Financial stocks had a good time of it, too, as CIBC gained $1.25, or 1.2%, to $109.82, while Manulife Financial vaulted 32 cents, or 1.5%, to $21.38.

The biggest percentage gainers on the TSX were shares of Cronos Group which rose $1.47, or 8.1%, to $19.62, followed by a gain of 58 cents, or 1%, in Canopy Growth, to $57.55, after brokerage CIBC initiated its coverage on both cannabis producers with "outperform" ratings.

Iamgold fell 20 cents, or 5% to $3.78, after BMO cut its rating on the gold producer to "market perform" from "outperform". Barrick Gold dipped 12 cents to $15.66.

Among material stocks, First Quantum Minerals lost nine cents to $12.77, while Agnico Eagle Mines tumbled 63 cents, or 1.2%, to close Friday at $51.75.

On the economic front, Statistics Canada reported that foreign investment in this country acquired $9.5 billion of Canadian securities in November, mainly bonds.

Meanwhile, Canadian investors reduced their holdings of foreign securities by $4.1 billion as they sold U.S. shares. The agency says the divestment in foreign securities was the largest in a year and followed two strong months of acquisitions.

Elsewhere, the agency’s Consumer Price Index rose 2.0% on a year-over-year basis in December, following a 1.7% increase in November. On a seasonally-adjusted monthly basis, inflation rose 0.2% in December.

ON BAYSTREET

The TSX Venture Exchange remained positive 0.88 points to 595.51

All but three of the 12 TSX subgroups were gainers on the day, as information technology clicked higher 1.1%, consumer discretionary picked up 1%, and financials prospered 0.9%

The three laggards were gold, down 1.8%, while materials floundered 0.5%, and real-estate slid 0.01%

ON WALLSTREET

Stocks rose on Friday as investors cheered potential progress in trade negotiations between China and the U.S.

The Dow Jones Industrial Average powered higher 336.25 points, or 1.4%, to end Friday and the week at 24,706.35, led by gains in UnitedHealth and Home Depot.

The 30-stock index is enjoying a gain of more than 1,350 points on the year so far.

The S&P 500 gained 34.75 points, or 1.3%, to 2,670.71, trading out of correction territory, as the materials and industrials sectors outperformed.

The Dow and S&P 500 posted their fourth straight week of gains, their longest streak since August. They both gained more than 2%.

The NASDAQ Composite rumbled higher 72.76 points, or 1%, to 7,157.23

Markets in the States will be closed Monday for Martin Luther King Day.

The major averages jumped to their highs of the day after sources told the media that China had offered a six-year increase in U.S. imports during recent trade talks. Bloomberg News reported on Friday that the deal would aim to reduce the annual U.S. deficit to zero by 2024.

Shares of Boeing and Caterpillar both closed more than 1.5% higher. Deere climbed more than 2.5%.

The gains come as the corporate earnings season kicks off. Major banks like J.P. Morgan Chase, Bank of America, Morgan Stanley and Goldman Sachs all released their quarterly results this week.

Most recently, Netflix reported better-than-expected earnings, boosted by stronger-than-forecast subscriber growth. However, the stock fell 1.8% on the back of disappointing guidance for the first quarter of 2019.

Dow member American Express also fell after reporting disappointing earnings.

Manufacturing data released by the Federal Reserve also showed the sector’s biggest gain in 10 months in December. Those numbers were boosted by strong production in motor vehicles and other goods.

Prices for the benchmark for the 10-year U.S. Treasury dipped sharply, lifting yields to 2.79% from Thursday’s 2.75%. Treasury prices and yields move in opposite directions.

Oil prices vaulted $1.61 to $53.68 U.S. a barrel.

Gold prices sank $11.80 to $1,280.50 U.S. an ounce.