Stocks Off to Begin Thursday - InvestingChannel

Stocks Off to Begin Thursday

Canada’s main stock index fell on Thursday, with technology stocks leading the declines after the U.S. Federal Reserve signaled that more interest rate hikes are likely.

The TSX shed 19.88 points at the outset Thursday to 19,995.21.

The Canadian dollar ditched 0.36 cents to 75.37 cents U.S.

In company news, Gibson Energy said on Wednesday it will buy South Texas Gateway oil terminal from Buckeye Partners and its partners for $1.1 billion as the company looks to expand into U.S. crude oil export markets. Gibson shares lost 50 cents, or 2.4%, to $20.80.

On the economic beat, the Canadian Real Estate Association stops by with MLS listing for May. Canada Mortgage and Housing Corporation said housing starts numbered 230,205 units in May down from 240,318 units in April.

Meantime, Statistics Canada says manufacturing sales rose 0.3% in April, mainly driven by higher sales in the motor vehicle parts as well as the petroleum and coal product industries.

ON BAYSTREET

The TSX Venture Exchange nicked higher 0.09 points to 610.08.

All but three of the 12 TSX subgroups were lower in the first hour, weighed most by information technology, losing 1.1%, health-care, ailing 0.8%, and gold, duller in price 0.7%.

The three gainers were consumer staples, up 0.6%, energy, 0.4% more energetic, and financials, richer 0.2%.

ON WALLSTREET

The Dow Jones Industrial average rallied more than 200 points and the S&P 500 touched a fresh 13-month high as investors bet the Federal Reserve was close to done raising rates after the central bank this week paused its rate-hiking campaign following 10 consecutive increases.

The 30-stock index leaped 220.82 points to commence trading at 34,200.15.

The S&P 500 climbed 22.53 points to 4,395.12.

The NASDAQ index took on 61.72 points to 13,688.19.

In tech, shares of Microsoft and Oracle were higher with gains above 1%. Alibaba stock climbed 2.5%.

Additional economic data releases Thursday morning gave investors and policymakers better insight on the strength of the labor market and consumer spending. Weekly jobless claims numbers were slightly above estimates at 262,000 compared to a Dow Jones estimate of 245,000, while retail sales ticked up 0.3%.

Fed Chair Jerome Powell said during a post-meeting press conference that the Federal Open Market Committee would use the six weeks until its next meeting to “take into account the cumulative tightening of monetary policy.” He added that a decision on July’s policy move has not yet been made. The upswing on Thursday shows investors remain willing to place bets on the overhang of uncertainty heading into the July FOMC meeting.

Prices for the 10-year Treasury spiked, dropping yields to 3.71% from Wednesday’s 3.80%. Treasury prices and yields move in opposite directions.

Oil prices recovered $1.02 to $69.29 U.S. a barrel.

Gold prices faded 50 cents to $1,968.40 U.S. an ounce.

Related posts

Advisors in Focus- January 6, 2021

Gavin Maguire

Advisors in Focus- February 15, 2021

Gavin Maguire

Advisors in Focus- February 22, 2021

Gavin Maguire

Advisors in Focus- February 28, 2021

Gavin Maguire

Advisors in Focus- March 18, 2021

Gavin Maguire

Advisors in Focus- March 21, 2021

Gavin Maguire