Canada’s main stock index touched a record high 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 sprang to a new record high, taking on 70.2 points, to pause for lunch at 19,815.67.
The Canadian dollar spiked 0.37 cents to 82.81 cents U.S.
Royal Bank of Canada rose $1.53, or 1.2%, to $125.98, while Canadian Imperial Bank of Commerce picked up while Toronto-Dominion Bank fell $1.26, or 1.4%, to $87.55
The largest percentage gainers on the TSX were Enerplus, which jumped 13 cents, or 1.7%, to $7.66, and Canaccord Genuity Group, which rose 35 cents, or 2.8%, to $12.81.
Endeavour Silver fell 14 cents, or 1.6%, the most on the TSX, to $8.59. The second biggest decliner was Village Farms International, down 23 cents, or 2%.
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.
Moreover, 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.
ON BAYSTREET
The TSX Venture Exchange moseyed lower 0.24 points to 955.76.
All but three of the 12 subgroups were higher midday Thursday, with consumer discretionary stocks jumping 1.8%, while energy stocks were 1.2% more energetic, and industrials were stronger 0.6%.
The three laggards were gold, down 0.8%, while health-care and information technology each shed 0.4%.
ON WALLSTREET
U.S. stocks climbed on Thursday as investors digested stronger-than-expected labour-market data.
The Dow Jones Industrials came off its peaks of the day, but remained positive 138.08 points to 34,461.07. Shares of Boeing advanced 4% on optimism about an economic recovery.
The S&P 500 added 12.83 points to 4,208.82.
The NASDAQ gained 28.44 points to 13,766.43.
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 10% 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.
On Thursday, Senate Republicans unveiled their $928-billion infrastructure counteroffer to President Joe Biden’s $1.7-trillion proposal.
Republicans again rejected Biden’s call to raise corporate taxes, contending they could cover infrastructure costs with funds already allocated by Congress or with transportation user fees.
Treasury Secretary Janet Yellen called on congressional leaders to step up spending, saying that inflation-adjusted spending has remained stagnant for 11 years.
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.