TSX on the Move Thursday - InvestingChannel

TSX on the Move Thursday

Canada’s main stock index rose at open on Thursday as better-than-expected quarterly profits from major lenders helped drive gains in most sectors, while shares of energy producers shrugged off a decline in oil prices.

The TSX added 46.05 points, in Thursday’s first hour at 19,791.52.

The Canadian dollar revived 0.35 cents to 82.79 cents U.S.

The Bank of Canada is likely to cut its bond-buying program again this year, possibly as soon as July, as provinces ease curbs to contain the COVID-19 pandemic and inflation pressures build.

Royal Bank of Canada beat analysts’ estimates for quarterly profit, driven by strength in its capital markets and wealth management units, and as it released some reserves set aside to cover loan losses.

RBC shares gathered $1.05 to $125.50.

A consortium led by a unit of Bombardier won a bid for the rolling stock and rail systems for Mexico’s flagship “Mayan Train” infrastructure project, the government said.

Bombardier shares acquired two cents, or 2.2%, to 95 cents.

Scotiabank raised the target price on Canadian Pacific Railway to $108.00 from $96.00. CP shares chugged along 27 cents to $98.99.

RBC raised the target price on Bank of Montreal to $141.00 from $125.00. BMO shares leaped 82 cents to $126.23.

On the economic beat, Statistics Canada reported that, compared with February 2020, payroll employment in Canada was down by 897,900 (-5.3%) in March 2021.

ON BAYSTREET

The TSX Venture Exchange gained 1.68 points to 957.68.

The 12 subgroups were evenly split soon after the opening, as consumer discretionary stocks surged 1.3%, energy burst forward 1.1%, and financials were richer by 0.6%.

The half-dozen laggards were weighed most by information technology, surrendering 0.7%, gold, down 0.5%, and utilities, off 0.3%.

ON WALLSTREET

U.S. stocks climbed on Thursday as investors digested stronger-than-expected labour-market data.

The Dow Jones Industrials rumbled higher 186.39 points to 34,509.44. Shares of Boeing advanced 4% on optimism about an economic recovery.

The S&P 500 added 12.47 points to 4,208.46.

The NASDAQ gained 17.42 points to 13,755.41.

It looks like gains for the overall market will be capped however, as investors are lightening up on technology shares as they rotate into cyclical stocks. Microsoft, Netflix and Amazon all traded in the red.

Snowflake shares fell 4% after the data-analytics software company reported widening losses. Nvidia’s stock dipped slightly even after the chip giant’s earnings and sales for the first quarter both beat Wall Street expectations. Its revenue grew 88% compared to last year.

Meme stocks, which have jumped this week amid a resurgence in speculative trading, turned higher again on Thursday. GameStop last traded up 1%. AMC Entertainment erased earlier gains and popped another 10%.

Ford was higher again, with the stock up nearly 6% following an upgrade by RBC. The stock jumped 8% on Wednesday after unveiling its electric vehicle strategy.

Initial jobless claims fell to 406,000, hitting a new pandemic low and much less than expected, the U.S. Labor Department reported Thursday. Economists surveyed by Dow Jones had expected a total of 425,000 Americans to have filed unemployment benefits in the week ended May 22.

In a separate report, the Commerce Department left its initial estimate on first-quarter gross domestic product unchanged at 6.4%

Prices for 10-Year Treasurys sagged, raising yields to 1.61% from Wednesday’s 1.58%. Treasury prices and yields move in opposite directions.

Oil prices dropped a nickel to $66.16 U.S. a barrel.

Gold prices fell $8.60 to $1,892.66 U.S. an ounce.

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