Canada's main stock index inched higher on Thursday, helped by financials and technology stocks on optimism that the U.S. Federal Reserve's recent rate hike might be the last in its tightening cycle.
The TSX sagged 2.4 points to observe noon EDT Thursday at 20,559.24.
The Canadian dollar inched up 0.06 cents to 75.78 cents U.S.
Rate-sensitive technology stocks climbed, led by a jump of $3.21, or 14.8%, in shares of Celestica, to $24.96, after the electronics company reported quarterly results.
Endeavour Silver docked $1.19, or 3.6%, to $31.65, and was among the top losers on the benchmark index. First Majestic Silver gained 78 cents, or 2.1%, to $37.61, however.
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 lost 7.36 points, or 1.2%, to 612.89.
Seven of the 12 TSX subgroups were better, as health-care improved 3.8%, information technology ahead 1%, and financials, eking up 0.4%.
ON WALLSTREET
The S&P 500 rose Thursday after traders absorbed a strong GDP number and Meta earnings results.
The Dow Jones Industrials index gained another 58.34 points to pause for lunch Thursday at 35,578.46.
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 25.55 points to 4,592.30.
The NASDAQ index climbed 157.95 points, or 1.1%, to 14,285.23.
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 3.95% from Wednesday’s 3.87%. Treasury prices and yields move in opposite directions.
Oil prices soared $1.31 to $80.09 U.S. a barrel.
Gold prices slumped $25.20 to $1,944.90 U.S. an ounce.
S&P 500 Vaults on Strong Earnings
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