Equities in Toronto rallied shortly after the open on Friday, reversing some of Thursday's losses, as investors took their cues from global markets optimistic that a deal could be reached over Greece, and Chinese stocks stabilized.
Toronto’s S&P/TSX composite index jumped 103.44 points to open the week’s final session at 14,381.93
The Canadian dollar dropped 0.23 cents at 78.47 cents U.S.
Loblaw Companies said its employees in 69 stores in Ontario have voted to accept a six-year contract, and all ongoing and pending strikes have been canceled. Loblaw said the terms of the contract provide employees and the company "a fair deal and security."
Strikes commenced on July 2 in nine stores and strikes scheduled to commence in 60 additional stores on July 11 have been canceled, Loblaw said. Loblaw shares advanced 10 cents to $63.34.
Teck Resources Ltd agreed to sell future output from its Chile mine to Royal Gold Inc for $525 million upfront payment and 15% of monthly average gold price at each delivery. Under the offtake agreement, Teck will sell all the payable gold produced from the Carmen de Andacollo mine to Royal Gold until 900,000 ounces have been delivered on a monthly basis.
Teck shares picked up 11 cents, or nearly 1%, to $11.48.
National Bank Financial raised the target price on MTY Food Group to $36 as the company delivered a solid second quarter performance as very strong corporate store revenues and in-line margins carried through to the bottom line. MTY shares added a penny to $34.00
On the economic beat, Statistics Canada reported this morning that employment was down 6,400 in June, as gains in full-time work were offset by losses in part-time. The unemployment rate held steady at 6.8% for the fifth consecutive month.
Following gains of 63,000, or 0.4%, in the first quarter of 2015, employment grew by 33,000 (+0.2%) in the second quarter. Full-time work increased by 143,000 in the second quarter, while part-time work declined by 110,000 over the same period.
ON BAYSTREET
The TSX Venture Exchange recovered 3.46 points to 640.17
All but four of the 14 TSX subgroups were positive in the session’s first hour, with global base metals climbing 1.6%, information technology moving higher 1.2%, and financials better by 1%.
The four laggards were weighed mostly by gold, down 0.6%, energy, sliding 0.2%, and materials, 0.1% worse off.
ON WALLSTREET
U.S. stocks surged on Friday as a second day of recovery in Chinese stocks and hopes of a resolution in Greece boosted investor sentiment.
The Dow Jones industrial average spiked 175.11 points, or 1%, to 17,723.73, with Verizon leading all blue chips higher.
The S&P 500 picked up 20.42 points, or 1%, to 2,071.73, with telecommunications leading all sectors higher.
The NASDAQ index gained 55.78 points, or 1.1%, to 4,978.17.
In economic reports, U.S. wholesale trade inventories for May jumped 0.8%, soundly topping estimates for the fastest pace of growth in six months. April's figure was unchanged, showing a 0.4% gain.
There are no major earnings due on Friday.
Traders will also listen to Fed Chair Janet Yellen's midday speech for signals on when the central bank might raise rates, especially given the recent developments in Greece and China.
Greece submitted new reform proposals late Thursday that creditors could evaluate as early as Friday. The parliament in Athens is also scheduled to vote on the proposals later in the day.
Chinese stocks extended gains on Friday, jumping for a second day following government intervention amid hopes of a Greece deal.
Prices for 10-year U.S. Treasuries dipped, raising yields to 2.39% from Thursday’s 2.30%. Treasury prices and yields move in opposite directions.
Oil prices erased 18 cents a barrel to $52.60 U.S.
Gold prices added 60 cents at $1,159.80 U.S. an ounce.
