Air Canada, Open Text in Focus
Canada's main stock index rose on Friday, as higher crude prices lifted energy shares, while robust earnings from companies including Air Canada beat back concerns over a fallout from the U.S. regional bank turmoil.
The TSX leaped 262.13 points, or 1.3%, to pause for lunch at 20,500.32.
The Canadian dollar muscled up 0.58 cents to 74.51 cents U.S.
Shares of “The Maple Leaf airline” surged $2.31, or 12.6%, to the top of the index, at $20.65, as the airline carrier raised its full-year forecast for core profit.
Technology stocks rose, lifted by a jump of $6.17, or 12.5%, in Open Text to $55.60, after its quarterly results beat.
On the economic beat, Statistics Canada reported the economy created 41,000 jobs in April, almost all of them part-time work. The jobless rate stayed put.
ON BAYSTREET
The TSX Venture Exchange heightened 6.39 points, or 1.1%, to move into Friday afternoon at 613.69.
All but two of the 12 TSX subgroups remained positive midday, led by energy, storming higher 3.5%, information technology clicking 2.3%, and financials, better 1%.
The lone laggards proved to be gold, dulling in price 1.8%, and communications, losing 0.5%.
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 spiked 382.74 points, or 1.2%, to move into the afternoon at 33,510.48.
The S&P 500 spiked 57.2 points, or 1.4%, to 4,118.57.
The NASDAQ Composite popped 204.8 points, or 1.7%, to 12,171.19.
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 3.45% from Thursday’s 3.36%. Treasury prices and yields move in opposite directions.
Oil prices took on $2.47 to $71.07 U.S. a barrel.
Gold prices took a header $33.30 to $2,022.40 U.S. an ounce.
