Canada’s resource-heavy main index was unchanged on Friday tracking global optimism around the U.S. Federal Reserve ending its monetary tightening campaign soon, and on gains in miners.
The TSX saw its gains shrink during the morning, and was up only 4.2 points to break for lunch Friday at 20,031.55.
The Canadian dollar inched up 0.12 cents to 75.74 cents U.S.
On the economic beat, Statistics Canada told us foreigners acquired $13.5 billion of Canadian securities in April, following a significant divestment in March. Meanwhile, Canadian investors added $2.4 billion of foreign securities to their holdings, after four consecutive months of reductions.
Also, wholesale trade for April came in at (excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain) fell 1.4% to $80.9 billion in April. The agency goes on to say the decrease was led by the miscellaneous and the food, beverage and tobacco product subsectors.
ON BAYSTREET
The TSX Venture Exchange nicked higher 1.09 points to 613.27.
Eight of the 12 TSX subgroups were higher, with consumer discretionary ahead 0.5%, gold and communications each stronger 0.3%.
The four laggards were co-led by energy and information technology, each off 0.6%, and health-care, losing 0.4%
ON WALLSTREET
Stocks were little changed on Friday as Wall Street closes out a huge week after investors got the pause in rate hikes from the Federal Reserve they were hoping for and encouraging inflation data.
The Dow Jones Industrials remained aloft 52.08 points to break for noon at 34,460.14. The 30-stock index was up 2% for the week, its third positive week in a row.
Markets in the U.S. will be shuttered Monday for Juneteenth.
The S&P 500 moved forward 9.47 points to 4,435.31.
The S&P 500 is up 3% on the week, its best performance since March. It’s the S&P 500’s fifth positive week in a row, the first such streak since November 2021. The benchmark is now up more than 26% from its bear market low.
The NASDAQ index eked higher 7.72 points to 13,790.54. The NASDAQ is up 4% on the week, its best week since March. The index has progressed eight weeks in a row, its best winning streak since 2019.
The S&P 500 and NASDAQ are at their highest levels since April 2022.
The Federal Reserve delivered what investors wanted this week when the central bank left rates unchanged Wednesday after 10 consecutive hikes. While the Fed signaled that two more rate increases were coming this year, many traders and economists on Wall Street believe the Fed could be nearly done. Earlier in the week, the May consumer price index came in at the lowest in two years.
Adobe added more than 2% after beating results and issuing upbeat guidance, the latest tech stock to rally. Nvidia is up 12% this week, adding to its 196% surge this year. Microsoft is up more than 6% this week and hit a record Thursday. Tech shares were the hardest hit initially when the Fed embarked on its rate-hiking campaign.
Consumer inflation expectations fell in June, with one-year assumptions for price pressures declining to 3.3% from 4.2% in May. The headline reading from the University of Michigan Survey of Consumers came in at 63.9, higher than estimates of 60.2 from Dow Jones.
Prices for the 10-year Treasury withered, raising yields to 3.76% from Thursday’s 3.72%. Treasury prices and yields move in opposite directions.
Oil prices moved higher 38 cents to $71.00 U.S. a barrel.
Gold prices gained $2.60 to $1,973.30 U.S. an ounce.