Equities in Canada’s largest centre gathered steam as morning became afternoon on Friday, driven by shares of precious metal miners as demand for gold, a safe-haven asset, rose due to concerns on global economic growth and political uncertainties.
The S&P/TSX Composite Index gained 89.49 points to greet noon at 15,370.27 – better than 1,000 above where it closed on New Year’s Eve.
The Canadian dollar regained half a cent to 75.4 cents U.S.
The largest percentage gainers on the TSX were Canfor Corp, which rose 75 cents, or 4.3%, to $18.07, and Interfor Corp, which increased 47 cents, or 2.8%, to $17.09
Descartes Systems Group fell 25 cents to $40.82. Another decliner was TransAlta, down five cents to $7.05.
ON BAYSTREET
The TSX Venture Exchange climbed 6.49 points to 599.87
All but three of the 12 TSX subgroups were positive midday, as health-care proved 2.6% haler, gold shone 2.5% brighter, and materials vaulted 2.2%.
The three laggards were communications, down 0.6%, consumer staples, sliding 0.5%, and utilities, off 0.01%.
ON WALLSTREET
U.S. stocks rose on Friday as investors looked past a poor Intel earnings report, instead focusing on hope that a government shutdown solution would come soon, as well as a resolution to the U.S.-China trade war.
The Dow Jones Industrials roared higher 222.69 points by noon ET, to 24,775.91, for a gain of more than 1,400 on the year so far.
The 30-stock index is aiming for its fifth consecutive week of gains.
The S&P 500 hiked 24.54 points, or 1%, to 2,666.87,
The NASDAQ Composite leaped 88.09 points, or 1.3%, to 7,161.55, as member Starbucks gained, latching onto strong earnings.
The Wall Street Journal reported that the Federal Reserve is closer than expected to ending its balance sheet unwind. The Fed’s decision is a key consideration for investors as they gauge the extent to which the central bank will tighten its monetary policy.
Treasury Secretary Steven Mnuchin also projected confidence about the status trade negotiations between the U.S. and China in comments to Reuters. Mnuchin said both sides were “making a lot of progress” in the talks.
Intel reported fourth-quarter earnings which beat Wall Street expectations but missed on revenue. The company’s 2019 forecast showed revenue growth of just 1%, with Intel expecting to report first-quarter earnings of 87 cents a share – 14 cents below Wall Street expectations.
Intel continues to search for a new CEO, seven months after Brian Krzanich was forced out. The stock was down more than 7% in trading, but other chip stocks were holding steady.
Starbucks stock gained as the company reported strong sales and earnings growth for its first-quarter report. The coffee giant saw revenue climb 9% compared to the same period last year.
Prices for the benchmark for the 10-year U.S. Treasury lost ground, boosting yields to 2.74% from Thursday’s 2.71%. Treasury prices and yields move in opposite directions.
Oil prices improved 54 cents to $53.67 U.S. a barrel.
Gold prices rumbled up $18.70 to $1,298.50 U.S. an ounce.
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