Equities in Canada’s largest centre opened higher on Friday, driven by shares of precious metal miners as demand for gold, a safe-haven asset, rose due to concerns on global growth and political uncertainties.
The S&P/TSX Composite Index gained 52.1 points to kick off the final session of the week at 15,332.88 – better than 1,000 above where it closed on New Year’s Eve.
The Canadian dollar regained 0.52 cents to 75.42 cents U.S.
Credit Suisse raised the rating on Acadian Timber to outperform from neutral. Acadian shares gathered 36 cents, or 2.1%, to $17.20.
Credit Suisse started coverage on Largo Resources with an underperform rating. Largo responded by dumping seven cents, or 2.5%, to $2.78.
National Bank of Canada initiated coverage on Richelieu Hardware with an outperform rating. Richelieu shares gained 13 cents to $22.86.
Canaccord Genuity initiated coverage on Troilus Gold with speculative buy rating. Troilus shares were unchanged at 65 cents.
ON BAYSTREET
The TSX Venture Exchange eked up 4.37 points to 597.75
Eight of the 12 TSX subgroups were positive in the first hour, with health-care spreading its wings 2.2%, materials better by 1.8%, and gold, shining 1.7% brighter.
The four laggards were weighed most by communications, down 0.4%, while consumer staples and utilities ditched 0.3% each.
ON WALLSTREET
U.S. stocks rose on Friday as investors looked past a poor Intel earnings report, instead focusing on hope that a government shutdown solution would come soon, as well as a resolution to the U.S.-China trade war.
Speculation that the Federal Reserve may end its balance sheet unwind sooner than expected also added to the bullish tone, as that’s been a major concern of investors.
The Dow Jones Industrials roared higher 273.82 points, or 1.1%, in Friday’s first hour of trade, to 24,827.06, or a gain of 1,500 on the year so far.
The 30-stock index is aiming for its fifth consecutive week of gains.
The S&P 500 hiked 25.58 points, or 1%, to 2,667.91
The NASDAQ Composite leaped 71.71 points, or 1%, to 7,145.17, as member Starbucks gained on strong earnings.
The Wall Street Journal reported that the Federal Reserve is closer than expected to ending its balance sheet unwind. The Fed’s decision is a key consideration for investors as they gauge the extent to which the central bank will tighten its monetary policy.
Treasury Secretary Steven Mnuchin also projected confidence about the status trade negotiations between the U.S. and China in comments to Reuters. Mnuchin said both sides were “making a lot of progress” in the talks.
Intel reported fourth-quarter earnings which beat Wall Street expectations but missed on revenue. The company’s 2019 forecast showed revenue growth of just 1%, with Intel expecting to report first-quarter earnings of 87 cents a share – 14 cents below Wall Street expectations.
Intel continues to search for a new CEO, seven months after Brian Krzanich was forced out. The stock was down more than 7% in trading, but other chip stocks were holding steady.
Starbucks stock gained as the company reported strong sales and earnings growth for its first quarter report. The coffee giant saw revenue climb 9% compared to the same period last year.
Prices for the benchmark for the 10-year U.S. Treasury lost ground, boosting yields to 2.75% from Thursday’s 2.71%. Treasury prices and yields move in opposite directions.
Oil prices improved 30 cents to $53.43 U.S. a barrel.
Gold prices muscled up $14.00 to $1,280.20 U.S. an ounce.
