Canada's main stock index opened at levels aiming at record highs on Thursday, boosted by oil prices on bullish forecasts of demand recovery, while the U.S. Federal Reserve's dovish policy stance lifted appetite for risk assets globally.
The TSX acquired 21.77 points to open at 19,378.72.
The Canadian dollar crept up 0.04 cents to 81.32 cents U.S.
Transat AT is reportedly very close to reaching a financial aid deal with the federal government involving a loan.
CIBC raised the target price on AutoCanada to $48.00 from $41.00
CIBC raised the target price on CGI to $110 from $105.50
Ontario will introduce three paid sick days for all workers during the COVID-19 pandemic, as hospitals struggle through a third wave of infections largely driven by coronavirus variants passed through workplaces.
On the economic front, Statistics Canada reported the total number of payroll employees in February was down 1.2 million (-6.8%) from one year earlier, before the onset of the COVID-19 pandemic.
ON BAYSTREET
The TSX Venture Exchange inched up 0.42 to 951.67.
Seven of the 12 TSX subgroups were higher in the first hour, as energy gushed 2.2%, while communications and financials each moved up 0.5%.
The five laggards were weighed most by health-care, sliding 2%, while gold sagged 1.8%, and materials were weaker by 0.9%.
ON WALLSTREET
The S&P 500 clinched a new intraday record on Thursday after blowout earnings results from two of the biggest tech companies in the world: Apple and Facebook.
The Dow Jones Industrials recovered 114.56 points to start Thursday’s trading session at 33,934.94,
The S&P 500 regained 21.89 points to 4,205.07.
The NASDAQ Composite restocked 44.62 points to 14,095.65, as a host of big-tech names rose across the board. Amazon acquired 0.9% and Alphabet gained 1.1%.
Investors pointed to strong earnings results from both iPhone-maker Apple and social media platform Facebook in explaining Thursday’s gains.
Apple said that sales jumped 54% during the quarter, with each product category seeing double-digit growth. The company also said it would increase its dividend by 7%, and authorized $90 billion in share buybacks. Apple shares rose 0.6%.
Facebook’s revenue jumped 48%, driven by higher-priced ads, sending its stock up as much as 6.5% and to a record high. Qualcomm shares soared 4% after reporting a 52% jump in revenue.
Cruise stocks jumped after the CDC said sailings from U.S. ports could begin mid-July. Carnival picked up 1.6%, and Norwegian shares jumped 3.4%.
Thursday marks President Joe Biden’s 100th day in office. On Wednesday evening, he made his first address to a joint session of Congress where he pushed his so-far popular agenda, which includes a $2 trillion infrastructure plan as well as a freshly unveiled, $1.8 trillion plan for families, children and students.
Thursday is also the busiest day of the quarterly earnings season, with roughly 11% of the S&P 500 slated to provide quarterly updates.
McDonald’s published its results before the opening bell and told investors that its sales have finally topped pre-pandemic levels. The Dow component also raised its outlook for system-wide sales growth.
Caterpillar beat expectations but traded slightly lower, while Merck shed 3% following disappointing results. Amazon, Gilead Sciences, Twitter, U.S. Steel and Western Digital will post results after the market closes.
Economic data released Thursday gave investors an update on the progress of the economic recovery.
First-quarter Gross Domestic Product hit an annualized rate of 6.4%, according to a report published by the Bureau of Economic Analysis, a sign that the U.S. economy began 2021 with an acceleration of commercial activity. Outside of the reopening-fueled third-quarter surge last year, it was the best period for GDP since the third quarter of 2003.
The U.S. Labor Department, meanwhile, reported that initial jobless claims last week totaled 553,000, just above the 528,000 estimate issued by Dow Jones.
Prices for 10-Year Treasurys slumped, raising yields to 1.68% from Tuesday’s 1.63%. Treasury prices and yields move in opposite directions.
Oil prices jumped $1.58 to $65.44 U.S. a barrel.
Gold prices handed back $10.80 to $1,763.10 U.S. an ounce.
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