Equities in Toronto were fighting to move higher at Thursday’s opening bell, driven by energy and technology stocks and on optimism that the U.S. Federal Reserve's recent rate hike might be the last in its tightening cycle.
The TSX eked up 6.79 points to kick off Thursday at 20,568.43.
The Canadian dollar inched up 0.06 cents to 75.78 cents U.S.
Cenovus Energy reported a 64% fall in second-quarter profit and lowered its total production outlook for 2023. The oil company’s stock picked up 45 cents, or 1.9%, to $24.26.
Economically speaking, Statistics Canada reported the number of employees receiving pay and benefits from their employer—measured as "payroll employees" in the Survey of Employment, Payrolls and Hours—increased by 23,300 in May, excluding federal government public administration.
ON BAYSTREET
The TSX Venture Exchange sagged 5.59 points to 614.66.
The 12 TSX subgroups were evenly divided in the first hour, with health-care and information technology each growing 1.5%, while consumer staples increased but 0.8%.
The half-dozen laggards were weighed most by gold, down 2.8%, materials, sliding 1.6%, and communications, off 0.5%.
ON WALLSTREET
Stocks rose Thursday with the Dow Jones Industrial Average headed for a 14-day advance, as traders absorbed a strong GDP number and Meta earnings results.
The 30-stock index gained another 57.64 points to begin Thursday at 35,520.12.
The longest winning streak ever for the Dow was in June 1897, when the index rose for 14 consecutive sessions. That was roughly one year after the Dow was incepted in May 1896.
The S&P 500 Index added 26.02 points to 4,592.77.
The NASDAQ index climbed 139.32 points to 14,266.61.
Meta Platforms shares popped 8% on better-than-expected results and strong guidance. The company’s numbers were boosted by a rebound in ad revenue. Meanwhile, Chipotle Mexican Grill dropped about 7% as sales fell short of estimates.
Earnings results have generally been stronger-than expected. Of the companies that have reported thus far, 81% have beaten analyst expectations, according to FactSet data.
The GDP data and earnings are the latest signals the U.S. economy is more resilient than expected and could dodge a recession, as inflation shows continued signs of easing.
Gross domestic product showed a rise of 2.4% in the second quarter, which was better than the 2% increase expected by economists polled by Dow Jones. The report also suggested price pressures are easing, with the personal consumption expenditures price index rising 2.6% in the second quarter. That’s lower than the 3.2% increase expected by economists, and the 4.1% rise in the prior quarter.
Prices for the 10-year Treasury shrank, raising yields to 3.94% from Wednesday’s 3.87%. Treasury prices and yields move in opposite directions.
Oil prices soared $1.22 to $80.00 U.S. a barrel.
Gold prices slumped $25.80 to $1,944.30 U.S. an ounce.
Related Stories
