Stocks in Toronto were subdued on Friday, as a rise in financials offset losses in energy stocks, though the benchmark is set to post weekly gains on hopes that the U.S. Federal Reserve is nearing an end to its rate-hike cycle.
The TSX diminished 4.92 points to stop for lunch at 20,272.72.
The Canadian dollar backed off 0.05 cents to 75.80 cents U.S.
Earlier this week, the Bank of Canada had lifted lending rates, as expected, to 5% and indicated further hikes as the central bank looks to bring down sticky inflation.
Meanwhile, dock workers at ports along Canada’s Pacific coast and their employers accepted a tentative wage deal on Thursday, ending a 13-day strike that disrupted trade at the country’s busiest port and risked worsening inflation.
Among individual stocks, TELUS International (Cda) tumbled $5.38, or 27.9% to $13.89, after the IT services company estimated a loss for the second quarter in preliminary results.
Pine Cliff Energy fell nine cents, or 5.7%, to $1.49, after Stifel downgraded the stock to “hold” from “buy”.
First Quantum Minerals slipped 29 cents to $34.58, after Raymond James downgraded the rating on copper miner to “market perform” from “outperform”.
Ero Copper lost 73 cents, or 2.5%, to $28.60, after Raymond James downgraded the stock.
Economically speaking, Statistics Canada said manufacturing sales rose 1.2% in May, mainly on higher sales of chemical products, motor vehicles, and machinery.
The Canadian Real Estate Association reported Friday that national home sales edged up 1.5% month-over-month in June. Actual (not seasonally-adjusted) monthly activity came in 4.7% above June 2022.
ON BAYSTREET
The TSX Venture Exchange eased 0.72 points to 631.33.
Still, eight of the 12 TSX subgroups were reaching upward by noon, with gold and consumer staples growing 0.8%, while industrials advanced 0.5%.
The four laggards were weighed most by energy, off 1.8%, communications, off 1.7%, and health-care stepping back 1.5%
ON WALLSTREET
Stocks rose Friday as strong earnings results from some of the biggest banks and companies kicked off earnings season.
The Dow Jones Industrials gained 124.94 points by midday Friday to 34,520.08.
The S&P 500 was higher 7.32 points to 4,517.36.
The NASDAQ index grabbed 42.53 points to 14,181.10.
Wall Street is coming off its fourth consecutive day of gains, with the NASDAQ and S&P 500 reaching their highest levels since April 2022.
JPMorgan Chase rose 1% after its second-quarter earnings topped expectations. The bank was boosted by higher interest rates and rising interest income. Wells Fargo also gained more than 3% on the back of better-than-expected results.
UnitedHealth shares jumped 7.3% after the insurance giant reported better-than-expected earnings and revenue. The company also raised the lower end of its full-year earnings guidance.
Prices for the 10-year Treasury lost strength, raising yields to 3.81% from Thursday’s 3.76%. Treasury prices and yields move in opposite directions.
Oil prices flopped $1.13 to $75.76 U.S. a barrel.
Gold prices dulled $1.50 to $1,962.30 U.S. an ounce.