Stocks Hike on Hope of Trade Resolution

Aphria, ARC in Focus

Canada's main stock index rose on Friday after two days of sharp declines as sentiment was lifted by comments from U.S. President Donald Trump predicting a swift end to the trade dispute with China.

The S&P/TSX Composite Index gained 45.71 points to begin the week’s final session at 16,210.32.

The index is still on track to end the week lower.

The Canadian dollar recovered 0.16 cents to 74.37 cents U.S.

Markets were closed Monday in Canada for Victoria Day

The largest percentage gainers on the TSX were Aphria Inc, which jumped 79 cents, or 9.2% to $9.41, after Jefferies started coverage of the cannabis producer with a "buy" rating, and First Quantum Minerals, which rose 10 cents, or 1%, to $9.95.

ARC Resources fell 12 cents, or 1.5%, the most on the TSX, to $7.84. The second biggest decliner was Eldorado Gold, down a dime, or 2.3%, to $4.22.

Elsewhere, TD Securities raised the price target on Heroux Devtek to $22.00 from $19.50. Heroux shares lost a penny to $15.98.

RBC cut the price target on PrairieSky Royalty to $24.00 from $26.00. PrairieSky docked 42 cents, or 2.4%, to $17.24.

Credit Suisse raised the price target Toronto-Dominion Bank to $83.00 from $81.00. TD gained 25 cents to $75.72.

ON BAYSTREET

The TSX Venture Exchange regained 4.23 points to 606.25.

All but three of the 12 Toronto subgroups were in the green in the first hour, as health-care picked up 1.2%, information technology surged 0.9%, and financials gained 0.5%.

The three laggards were gold, down 0.4%, consumer staples, off 0.3%, and energy, sliding 0.2%.

ON WALLSTREET

Stocks traded higher on Friday after President Donald Trump said the ongoing trade war could be over quickly, but equities were still on pace to close lower for the week.

The Dow Jones Industrials advanced 81.75 points to 25,572.22,

The S&P 500 progressed 8.92 points to 2,831.16.

The NASDAQ Composite hiked 36.28 points to 7,664.56

The Dow and S&P 500 came into Friday’s session down more than 1% each for the week while the NASDAQ had lost 2.4%.

Qualcomm dropped 16.3% and and Broadcom lost 10.3%.

Apple shares also contributed to the tech losses as several analysts raised concern over the company’s exposure to China. The stock is down nearly 5% this week.

Amazon shares contributed to Friday’s gains, rising 1.2% after an analyst at Piper Jaffray said the company’s stock could reach $3,000 in two years. Dow Inc added to the gains, climbing 0.5% after J.P. Morgan upgraded the stock to neutral from underweight. Trade bellwethers Boeing gained 2.4%, and Caterpillar rose 0.4%.

Trump told reporters on Thursday afternoon he expected the U.S.-China trade war to end swiftly. He also noted a trade deal with China could lift tough restrictions on the Chinese telecom giant Huawei.

Prices for the benchmark 10-year U.S. Treasury backed off, raising yields to 2.33% from Friday’s 2.31%. Treasury prices and yields move in opposite directions.

Oil prices regained 39 cents to $58.30 U.S. a barrel.

Gold prices dipped $3.10 to $1,282.30 U.S. an ounce.