Canada's main stock index rose on Thursday, led by energy shares after an unexpected rise in Chinese exports raised hopes of a revival in global demand and boosted oil prices.
The S&P/TSX Composite Index came off its highs of the morning, but remained positive 91.3 points, to greet noon EDT at 14,922.04.
The Canadian dollar recovered 1.02 cents to 71.58 cents U.S.
The largest percentage gainers on the TSX were Primo Water, which jumped $1.67, or 12.4%, to $15.17, and Tourmaline Oil which rose 66 cents, or 4.9%, to $14.26. Both stocks gained after reporting strong first-quarter results.
Bausch Health fell $1.31, or 5.4%, the most on the TSX, to $22.97, after posting a first-quarter loss. Spin Master, which also reported a quarterly loss, was the second-biggest decliner, with its shares falling seven cents to $17.89.
Western University’s IVEY School of Business put out its Purchasing Managers’ Index for April, and revealed the index fell yet again to 22.8 from March's reading of 26, and way down from April 2019's level of 55.9.
ON BAYSTREET
The TSX Venture Exchange gained 4.04 points to 482.86.
Seven of the 12 TSX subgroups were positive midday with energy higher by 2.3%, consumer discretionary 2.2% more solid, and gold shining brighter 1.3%.
Health-care weighed most among the five laggards, down 1.2%, communications, sliding 0.4%, and utilities, off 0.3%.
ON WALLSTREET
The NASDAQ Composite rose on Thursday, clawing back its steep losses for the year, as tech shares added to their recently strong gains while investors mounted bets on the U.S. economy reopening soon.
The Dow Jones Industrials triumphed 394 points, or 1.7%, to 24,056.34.
The S&P 500 advanced 48.96 points, or 1.7%, to 2,897.20.
The tech-heavy index traded 1.6% higher as Apple shares also gained more than 1%.
Facebook, Amazon, Netflix and Alphabet, are all up at least 15% this quarter and are positive for 2020. Microsoft, another major tech stock, has rallied more than 16% this year and for the quarter.
Thursday marked the first time one of the major averages was up year to date since the coronavirus pandemic led to the closure of nonessential businesses, sparking massive layoffs and a historic market selloff.
In corporate news, Peloton reported revenues surged 66% during its fiscal third quarter as more Americans bought fitness equipment for at-home use during the coronavirus pandemic.
Critically, Peloton said it is seeing demand from new customers who’ve been inspired to buy one of its bikes amid the COVID-19 outbreak.
Peloton shares rose more than 11%.
Stocks that would benefit from the reopening of the economy also gained in early trading, including Hilton Worldwide and MGM Resorts. Hilton traded 1.8% higher while MGM gained 1.7%. Carnival traded more than 4% higher while Norwegian Cruise Line gained 5.1%.
Thursday’s gains came even as another 3.17 million Americans filed for unemployment benefits last week, bringing the seven-week total to 33.5 million. But while jobless claims continue to rise, last week’s tally was the lowest since shortly after the coronavirus was declared a pandemic.
States such as California and New York have unveiled plans to gradually reopen the economy. Other states, including Georgia, have already let some nonessential businesses resume operations.
Meanwhile, China posted better-than-expected exports for April. Data from the General Administration of Customs released on Thursday showed exports rose 3.5% in April, versus expectations of a 15.7% decrease from economists.
Recent data out of China, where the earliest cases of the coronavirus were reported, have been closely watched by investors as the country was one of the first to ease lockdown measures
Prices for the 10-Year Treasury were higher, lowering yields to 0.64% from Wednesday’s 0.70%. Treasury prices and yields move in opposite directions.
Oil prices advanced 44 cents to $15.46 U.S. a barrel.
Gold prices leaped $28.30 to $1,716.80 U.S. an ounce.
Dow Balloons Near 400, NASDAQ Turns Positive for Year
