Stocks Start on Right Foot - InvestingChannel

Stocks Start on Right Foot

Equities in Canada’s largest market opened higher on Thursday as mining stocks tracked higher bullion prices, while government data showed that domestic wholesale trade most likely rose by 1.1% in May sequentially.

The TSX Composite index regained 65.64 points to move into mid-morning Thursday at 20,230.03.

The Canadian dollar handed back 0.17 cents to 81.25 cents U.S.

Enbridge said on Wednesday that construction on its Line 5 oil pipeline tunnel under the Great Lakes will be delayed, after the U.S. Army Corps of Engineers announced the project will undergo a tougher environmental review. Shares in Enbridge picked up 13 cents to $49.21.

Westport Fuel Systems jumped 23 cents, or 3.5%, to $6.78, and Magna International rose $3.48, or 3%, to $117.85, after Goldman Sachs upgraded the auto parts maker’s stock.

In the economic docket, Statistics Canada reported the number of employees receiving pay or benefits from their employer—measured in SEPH as payroll employment—increased by 166,900 (+1.0%) in April.

Export Development Canada’s Trade Confidence Index jumped

19% from end-2020 to mid-2021, the agency declaring the hike largest six-month increase since the survey began in 1999.

ON BAYSTREET

The TSX Venture Exchange gathered 2.97 points to 948.87.

Eight of the 12 TSX subgroups were in the green to commence Thursday, with health-care haler by 2.3%, consumer discretionary flourishing 1.2%, and information technology, up 1%.

The four laggards were weighed by energy, down 0.5%, consumer staples, off 0.2%, and utilities, retreating 0.1%.

ON WALLSTREET

The S&P 500 climbed on Thursday, surpassing its record high set a week ago as the market fully recovered losses triggered by the Federal Reserve’s surprise policy pivot.

The Dow Jones Industrials thundered ahead 276.44 points to 34,150.68.

The S&P 500 regained 28.25 points to 4,270.09.

The NASDAQ climbed 135.69 points, or 1%, to another intraday record of 14,407.42.

A broad group of stocks gained to push the benchmarks to new highs. Communication services, consumer discretionary, health care and tech were the best-performing sectors. Tesla added more than 2%, while GM and Caterpillar each gained about 1%.

Bank shares gained ahead of the Fed’s annual bank stress test results, which are scheduled for release after the bell on Thursday. The test examines how banks fare during various hypothetical economic downturns.

Banks were forced to freeze dividends and stop buybacks during the pandemic. These results should give them the green light to eventually raise payouts. Goldman Sachs shares rose about 1%.

Data out Thursday showed jobless claims totaled 411,000 for the week ended June 19, higher than an estimate of 380,000 from economists polled by Dow Jones.

Prices for 10-Year Treasurys were unchanged, maintaining yields at Wednesday’s 1.49%. Treasury prices and yields move in opposite directions.

Oil prices gave up 18 cents to $72.90 U.S. a barrel.

Gold prices picked up $1.40 to $1,784.80 U.S. an ounce.

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