Equity markets in Toronto scaled a new all-time peak on Thursday, as the signing of an initial U.S.-China trade deal offered some relief to investors, while shares of Bombardier tumbled to a near four-year low on a profit warning.
The TSX Composite Index had gained 59.01 points to greet noon Thursday at 17,474.18.
The Canadian dollar shied away 0.01 cents to 76.67 cents U.S.
Bombardier shares tumbled 55 cents, or 30.7% to $1.24, their lowest level since March 2016, after the company warned of lower 2019 profits and said it might have to write down significantly the value of its partnership with Airbus on A220 jets.
Bombardier was the top loser on the TSX.
On a brighter note, the largest percentage gainer on the TSX was cannabis producer Aurora Cannabis, which jumped 10 cents, or 3.7%, to $2.79, while rival Hexo gave back earlier gains and slid five cents, or 2.1%, to $2.36.
On the economic slate, the Canadian Real Estate Association said MLS sales edged down by 0.9% in December.
This ended a streak of monthly gains that began last March. Activity is currently about 18% above the six-year low reached in February 2019 but ends the year about 7% below the heights recorded in 2016 and 2017.
Also lifting the mood was a report from payroll services provider ADP which showed Canada added 46,200 jobs in December, the sixth straight month of gains.
ON BAYSTREET
The TSX Venture Exchange tacked on 1.68 points to 578.69
All but two of the 12 TSX subgroups were positive midday, with health-care popping 1.2%, consumer discretionary progressing 0.8%, and real-estate, stronger by 0.6%,
The two laggards were materials, dropping 0.8%, while gold dulled in price 0.5%.
ON WALLSTREET
Stocks rose on Thursday to hit fresh record highs after Morgan Stanley reported quarterly figures that easily topped analyst expectations while investors solid data on the U.S. economy.
The Dow Jones Industrials spiked 172.05 points to 29,202.77,
The S&P 500 gained 18.28 points to 3,307.57, forging above 3,300 for the first time.
The NASDAQ hiked 60.65 points to 9,319.35.
Morgan Stanley’s three main businesses — investment management, wealth management and trading — all produced more revenue than expected in the previous quarter. The company’s stock jumped 7%.
So far, the earnings season is off to a solid start. Around 7% of S&P 500 companies have reported earnings thus far. Of those companies, 76.5% have posted better-than-expected expectations.
Expectations about the earnings season were muted prior to this week. Analysts expected S&P 500 earnings to have fallen by 2% in the fourth quarter
Strong economic data also lifted sentiment on Wall Street. Weekly jobless claims unexpectedly dropped by 10,000 to 204,000. Economists expected a print of 216,000. Meanwhile, retail sales climbed by 0.3% in December, matching expectations.
Stocks closed well off their session highs on Wednesday after President Donald Trump and Chinese Vice Premier Liu He signed a “phase one” trade deal in Washington, D.C. Under the agreement, China is set to buy an additional $200 billion in U.S. goods over the next two years.
Prices for the 10-Year U.S. Treasury sagged, raising yields to 1.81% from Wednesday’s 1.78%. Treasury prices and yields move in opposite directions.
Oil prices recovered $1.02 to $58.83 U.S. a barrel.
Gold prices dropped $2.80 to $1,551.20 U.S. an ounce.
