TSX Stages Mini-Recovery

Equities in Canada’s largest centre rose on Thursday as data showed domestic manufacturing activity expanded in September at its fastest pace in more than two years, bolstering optimism around a post-coronavirus economic recovery.

The TSX gained 43.3 points to open Thursday at 16,164.68.

The Canadian dollar added 0.02 cents to 75.16 cents U.S.

The largest percentage gainer on the TSX was CAE, which jumped $1.17, or 6%, to $20.65, after BMO upgraded the rating of the flight simulator maker’s stock to outperform from market perform.

Its gains were followed by Brookfield Property Partners L.P, which rose 57 cents, or 3.6%, to $16.60.

JP Morgan cut the rating on Cenovus Energy to underweight from neutral. Cenovus fell 25 cents, or 4.8%, to $4.94. The second-biggest decliner was NovaGold Resources, down 36 cents, or 2.3%, to $15.50.

Canaccord Genuity raised the price target on Dye & Durham to $28.00 from $18.00. Dye and Durham gained 49 cents, or 2.2%, to $22.71.

ATB Capital Markets raised the price target on Parkland Corp to $44.00 from $42.00. Parkland shares began the day down three cents to $35.18.

On the economic slate, Statistics Canada said the value of building permits for August rose 1.7% to $8.1 billion in August, driven by an increase in the residential sector in Ontario and Quebec.

Also, the Markit Manufacturing Purchasing Managers Index registered 56.0 in September, up from 55.1 in August, to signal the sharpest improvement in operating conditions since August 2018.

ON BAYSTREET

The TSX Venture Exchange recovered 8.7 points, or 1.2%, to 715.21.

All but three of the 12 TSX subgroups were higher in the first hour, with information technology picking up 1.4%, real-estate 1.1% more solid, and health-care haler by 0.8%.

Energy lost 1.7%, while consumer staples fell backward 0.4%. Communication shares were unchanged soon after the opening bell.

ON WALLSTREET

U.S. stocks were little changed on Thursday to kick off a new month and quarter as investors monitored progress on lawmakers’ negotiations on further fiscal stimulus.

The Dow Jones Industrial Average eked ahead 12.01 points to 27,793.71.

The S&P 500 gained 4.92 points, to 3,367.92.

The NASDAQ added 77.05 points to 11,244.56.

The major averages are coming off their first down month since March. The 30-stock Dow lost 2.2% in September, a typically weak month for equities. The S&P 500 fell 3.9% for the month, while the technology-heavy NASDAQ dropped 5.2%.

However, all three benchmarks achieved strong gains for the third quarter. The S&P 500 rose 8.5% in the quarter for its sixth positive quarter in seven and the index is up 5% for the year.

Major technology shares provided the broader market with some support as Amazon, Microsoft, Alphabet, Apple and Facebook climbed at least 1% each. The S&P 500 tech sector was the biggest winner among the 11 groupings, jumping 1.4%.

The House of Representatives delayed a vote on the Democrats’ $2.2-trillion rescue package on Wednesday evening to allow for more talks, which some saw as a sign that a deal can still be reached.

White House chief of staff Mark Meadows told reporters late Wednesday that President Donald Trump has extended an offer for more than $1.5 trillion in stimulus. No further details were given on the exact figure except that anything around $2 trillion and above would be a “real problem.”

Sentiment was lifted by better-than-expected weekly jobless claims report. The U.S. Labor Department said first-time filers for unemployment benefits came in at 837,000 in the week ending Sept. 26. Economists polled by Dow Jones expected a total of 850,000.

Prices for the 10-Year Treasury stepped, raising yields to 0.69% from Wednesday’s 0.68%. Treasury prices and yields move in opposite directions.

Oil prices retreated $1.82 to $38.40 U.S. a barrel.

Gold prices rallied $12.30 to $1,907.80 U.S. an ounce.