Investors breathed a collective sigh of relief over the glad tidings south of the border the U.S. debt ceiling, and showed that relief by going on something of a buying spree.
The TSX bounced 352.38 points, or 1.8%, to end Friday at 20,024.63. The TSX suffered its sixth straight week of declines if losses hold, its longest weekly losing streak in over a year. This week, even with Friday’s gains, the index faltered 326 points, or 1.6%.
The Canadian dollar eked up 0.12 cents to 74.49 cents U.S.
All but two of the TSX subgroups were in positive country, led by the energy sector, in which Baytex was the main star, adding 28 cents, or 6.3% to $4.71, while Headwater Exploration grabbed 42 cents, or 6.5%, to $6.88.
Among consumer discretionary concerns, Gildan Activewear gained $1.03, or 3.7%, to $28.78, while Magna International jumped $3.16, or 4.8%, to $68.75.
Industrials also moved upward, as CAE popped $1.03, or 3.7%, to $28.78, while Ritchie Bros. Auctioneers tacked on $2.74, or 3.9%, to $73.81.
Gold did not fare so well, though, as OceanaGold lost 14 cents, or 4.6%, to $2.90, while Torex Gold backpedaled 82 cents, or 3.8%, to $20.74.
In communications, Rogers dived 49 cents to $59.39.
ON BAYSTREET
The TSX Venture Exchange picked up 3.07 points to 609.08, a loss on the week of 3.7 points, or 0.6%.
All but two of the 12 TSX subgroups prospered Friday, led by energy, 2.8%, consumer discretionary, towering 2.3%, and industrials, rumbling 2%
The two laggards were gold, off 1.9%, and communications, easing 0.03%.
ON WALLSTREET
The Dow Jones Industrial Average surged Friday as traders cheered a strong jobs report and lawmakers passing a debt ceiling bill that averts a U.S. default.
The 30-stock index popped 700.89 points, or 2.1%, to conclude Friday at 33,762.46, for its best one-day gain since November.
The S&P 500 acquired 61.34 points, or 1.5%, to 4,282.36, while the tech-heavy NASDAQ index jumped 139.78 points, or 1.1%, to 13,240.77, reaching its highest level since April 2022 during the session.
The major averages were higher for the week. The S&P 500 jumped 1.9%, and the NASDAQ was 2.1% higher, The Dow’s Friday advance pushed it into positive territory, up 2.1% on the week. The NASDAQ is on pace to end its sixth straight week higher, a streak length not seen for the technology-heavy index since 2020.
Non-farm payrolls grew much more than expected in May, rising 339,000 despite economists polled by Dow Jones expecting a relatively modest 190,000 increase. It marked the 29th straight month of positive job growth.
Recent strong jobs reports have pressured stocks on the notion that the resilient labour market will keep the Federal Reserve in hiking mode. But the stock market seemed to like Friday’s numbers, perhaps concentrating on a wage increase that showed lighter-than-expected inflation and an unemployment rate that ticked higher.
Lululemon shares popped nearly 13% on strong results and a guidance boost, while MongoDB surged more than 28% on a blowout forecast.
Prices for the 10-year Treasury sagged, raising yields to 3.70% from Thursday’s 3.60%. Treasury prices and yields move in opposite directions.
Oil prices jumped $1.83 to $71.91 U.S. a barrel.
Gold prices tailed off $30.80 to $1,964.70 U.S. an ounce.