TSX Continues Hot Streak

Weston, Aritizia in Spotlight

The TSX barreled ahead 202.15 points, or 1.1%, to close Thursday at 19,456.71.

The Canadian dollar advanced 0.15 cents to 78.02 cents U.S.

Energy issues provided the octane as Tourmaline Oil jumped $4.62, or 6.3%, to $78.05, while Precision Drilling muscled up $4.97 or 6.1%, to $86.81.

In consumer staples, George Weston popped $4.61, or 3%, to $158.16, while Alimentation Couche-Tard revved higher $1.58, or 2.9%, to $56.61.

In consumer discretionary stocks, Aritzia vaulted $2.11, or 5.8%, to $38.50, while Canada Goose Holdings acquired 85 cents, or 3.7%, to $5.50.

Weighing on the health-care index, Bausch Health dropped $5.64, or 50.6%, to $5.50, its lowest level in more than 25 years. Ironically, Bausch was the only stock in that sector to lose strength.

On the economic calendar, Statistics Canada reported the number of employees receiving pay or benefits from their employer decreased by 26,100 (or 0.1%) in May, the first decline since May 2021.

ON BAYSTREET

The TSX Venture Exchange rocketed 15.65 points, or 2.5%, to 635.41.

All but one of the 12 TSX subgroups moved higher, with energy rumbling 2%, consumer staples up 1.8%, and consumer discretionary ahead of Wednesday, or 1.7%.

Only health-care took a beating, 11.3% at that, solely the fault of Bausch Health.

ON WALLSTREET

U.S. equities rallied Thursday for the second day in a row even after the latest GDP showed a second-straight contraction, as investors bet the economic downturn would soon cause the Federal Reserve to end its aggressive hiking campaign.

The Dow Jones Industrials went on the attack Thursday, leaping 332.04 points, or 1%, to conclude Thursday at 32,529.63.

The S&P 500 hiked 48.82 points, or 1.1%, to 4,072.43.

The NASDAQ surged 130.17 points, or 1.1%, to 12,162.59.

All of the major averages are on pace for a winning week as well as their best month of 2022.

Traders had a deluge of second-quarter company earnings to digest Thursday. Honeywell and Etsy both reported strong results that boosted their shares 3.7% and 9.9%, respectively. Ford Motor climbed 7.1% after it beat profit and revenue estimates and raised its dividend.

On the flip side, shares of Meta Platforms dipped 5.2% on the back of disappointing quarterly numbers. Shares of Comcast slid 9.1% after reporting it failed to add broadband subscribers for first time ever.

Spirit Airlines rose 5.6% following its announcement that it has agreed to be acquired by JetBlue, after a months-long bidding war.

The moves came after the Bureau of Economic Analysis reported U.S. economic growth fell 0.9% in the second quarter. The Dow Jones estimate was for a gain of 0.3%. First-quarter GDP declined by 1.6%.

Nearly 49% of S&P 500 companies have reported earnings through Thursday’s open. Of those companies 71.5% have beaten estimates.
Investors are looking ahead to results from Apple, Amazon, Intel and Roku slated for after the bell.

Treasury prices jumped, lowering yields to 2.67%, from Wednesday’s 2.79%. Treasury prices and yields move in opposite directions.

Oil prices slid 18 cents to $97.08 U.S. a barrel.

Gold prices gathered $33.10 to $1,750.90 U.S. an ounce.