(CORRECTS DAY OF STOCK READINGS)
Canada's main stock index rose at the open on Thursday after Shopify's shares surged as the e-commerce company plans to lay off 20% of its workforce and sold its logistics arm, while an uptick in gold prices supported miners.
The TSX regained 79.67 points to begin trading Thursday at 20,434.35.
The Canadian dollar was up 0.28 cents at 73.43 cents U.S.
Shopify, for its part, galloped $16.13 per share, or 25.6%, to $79.18.
Canadian Natural Resources narrowly missed analysts' estimates for first-quarter profit, as lower energy prices more than offset a rise in production for the country's largest oil and gas producer. Natural Resources shares lost $1.51, or 2%, to $74.93.
First Horizon Corp and Toronto-Dominion Bank Group have agreed to call off their $13.4-billion deal on lack of clarity on if and when they would get regulatory approvals to close the deal. TD shares gained 84 cents, or 1%, to $82.31.
On the economic beat, Statistics Canada noted in March, Canada's merchandise imports decreased 2.9%, while exports were down 0.7%. As a result, Canada's merchandise trade balance with the world moved from a revised $487 million deficit in February to a $972-million surplus in March.
What’s more, the IVEY PMI dwindled to 56.8 in April from March's 58.2, and much lower than the 69.9 figure in April 2022.
ON BAYSTREET
The TSX Venture Exchange restocked 2.42 points to 608.33.
Eight of the 12 TSX subgroups were negative in the first hour, though, with health-care withering 2.1%, while communications fell c0.6%, and financials lost 0.5%.
The four gainers were led by information technology, zooming 5.8%, gold, brighter by 2.6%, and materials, stronger 0.8%.
ON WALLSTREET
Stocks declined Thursday, as contagion fears in the regional bank space were reignited. Investors also digested the Federal Reserve’s 25 basis point rate hike and commentary following its Wednesday meeting.
The Dow Jones Industrials dumped 342.23 points, or 1%, to 33,072.01, Declines in Boeing, Disney, Goldman Sachs and American Express shares pulled back the Dow.
The S&P 500 lost 31.18 points to 4,059.57.
The NASDAQ Composite faltered 62.58 points to 11,962.74.
Regional bank shares sold off hard, Western Alliance tumbled 39% and saw trading halted multiple times due to volatility. Meanwhile, Zions Bancorporation lost 13%.
There likely won’t be a respite for the embattled regional banking sector until the Fed cuts interest rates, said Jeffrey Gundlach, CEO of DoubleLine. Since the closure of Silicon Valley Bank in March, First Republic has joined the ranks of failed institutions and was recently taken over by JPMorgan Chase.
As the Fed pushed through its 10th rate hike in this cycle and the central bank seemed to soften its language on future increases, Chair Jerome Powell said that it may be too soon to cut.
Prices for the 10-year Treasury moved up, lowering yields to 3.36% from Tuesday’s 3.42%. Treasury prices and yields move in opposite directions.
Oil prices skidded $3.48 to $68.18 U.S. a barrel.
Gold prices recovered $21.00 to $2,044.30 U.S. an ounce.
Related Stories
