Stock markets in Canada’s largest centre rose at the open on Friday, with rising crude prices supporting energy shares, and upbeat Wall Street sentiment helping to beat back spillover worries from the U.S. regional bank turmoil.
The TSX leaped 158.29 points to begin the week’s last session at 20,396.48.
The Canadian dollar strengthened 0.40 cents to 74.33 cents U.S.
Canada's federal environment ministry opened a formal investigation into a months-long tailings leak at Imperial Oil Ltd's Kearl oil sands mine in northern Alberta, signaling a potential prosecution.
Shares in IMO popped $2.14, or 3.6%, to $62.41.
Magna International slightly raised its full-year sales forecast as the Canadian auto parts maker expects light vehicle production to improve in its two biggest markets of North America and Europe. Magna shares hiked $3.06, or 4.5%, to $71.05.
On the economic beat, Statistics Canada reported the economy created 41,000 jobs in April, almost all of them part-time work.
ON BAYSTREET
The TSX Venture Exchange increased 3.02 points to commence Friday trading at 610.32.
All but three of the 12 TSX subgroups were positive in the first hour, led by energy, storming higher 3.5%, information technology clicking 2.3%, and financials, better 1%.
The three laggards proved to be gold, dulling in price 3.2%, materials, back 1.4%, and communications, losing 0.1%.
ON WALLSTREET
Stocks popped on Friday as regional bank shares climbed off their lows and market-darling Apple reported better-than-expected quarterly earnings.
The Dow Jones Industrials skyrocketed 461.72 points, or 1.4%, to kick off Friday at 33,589.40.
The S&P 500 spiked 59.33 points, or 1.5%, to 4,120.55.
The NASDAQ Composite jumped 191.19 points to 12,157.18.
Stocks rose even as April’s jobs numbers came in hotter than expected. The U.S. economy added 253,000 jobs in April, while Wall Street had expected 180,000 new jobs, according to the Bureau of Labor Statistics.
Apple posted beats on the top and bottom lines for the fiscal second quarter, propelled by iPhone sales. Apple shares gained more than 4%.
The rebound for regional bank stocks was boosted by a note from JPMorgan, which upgraded Western Alliance, Zions Bancorp and Comerica to overweight. The firm said those three banks appear “substantially mispriced” in part due to short-selling activity. PacWest — which is down sharply this week on news it’s considering strategic options that include a sale — popped 54%. Western Alliance also jumped more than 34%.
Shares of regional banking companies have been under pressure this week, as traders fear other institutions could suffer the same fate as Silicon Valley Bank and Signature Bank. Both banks collapsed in March.
Prices for the 10-year Treasury sagged, raising yields to 3.44% from Thursday’s 3.36%. Treasury prices and yields move in opposite directions.
Oil prices took on $3.15 to $71.71 U.S. a barrel.
Gold prices took a header $44.10 to $2,011.60 U.S. an ounce.
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