Toronto stocks climbed on Friday, led by rate-sensitive technology shares, after a slew of economic data fueled hopes that the Federal Reserve’s recent rate hike might be the last in its tightening cycle.
The TSX ballooned 180.15 points as morning became afternoon, to 20,565.52.
The Canadian dollar was unchanged at 75.59 cents U.S.
Shares of TC Energy fell $2.20, or 4.7%, to $45.10 on Friday after the Keystone pipeline operator disclosed plans to spin off its liquids business to focus on transporting natural gas.
Economically speaking, Statistics Canada reported real gross domestic product rose 0.3% in May, as services-producing industries advanced 0.5% while goods-producing industries contracted 0.3%.
ON BAYSTREET
The TSX Venture Exchange zoomed 7.32 points, or 1.2%, to 618.89.
All but one of the 12 TSX subgroups had gained ground by midday with health-care leaping 2.4%, while energy and information technology progressed 1.8% each.
Only real-estate was in the red, and only 0.3% at that.
ON WALLSTREET
Stocks rose Friday with the Dow Jones Industrial Average and S&P 500 set to close out their third winning week in a row as a measure of inflation closely watched by the Federal Reserve came in at its lowest in nearly two years.
The 30-stock index leaped 224.67 points to greet noon at 35,507.39.
The S&P 500 Index rebounded 47.69 points to 4,585.10.
The NASDAQ index popped 279.36 points, or 2%, to 14,329.45.
All the major averages are on pace for weekly gains. The 30-stock average is up 0.9%, while the tech-heavy index is up more than 2%. The S&P 500 is 1.1% higher.
Earnings season continued with Dow member Procter & Gamble shares gaining more than 3%. The consumer goods company behind Tide and other brands beat analysts’ earnings and revenue expectations in its most recent quarter.
Intel jumped more than 6% as investors applauded a return to profitability, while Roku climbed 24% after beating Wall Street expectations on both the top and bottom lines.
On the other hand, Ford Motor shares fell 4% even though the automaker beat estimates and raised guidance. The company said its electric vehicle adoption was taking longer than expected due to higher costs.
June data for the personal consumption expenditures price index continued to show easing inflation. The gauge showed PCE gained 0.2% month-over-month, in line with the 0.2% increase expected by economists polled by Dow Jones. Core PCE rose 4.1% from the year-ago period, lower than the anticipated 4.2%.
The data is of particular interest after the central bank raised interest rates earlier this week in a widely expected move. The Fed targets inflation at 2% annually.
Prices for the 10-year Treasury jumped, lowering yields to 3.97% from Wednesday’s 4.01%. Treasury prices and yields move in opposite directions.
Oil prices docked 32 cents to $79.77 U.S. a barrel.
Gold prices climbed $15.20 to $1,960.50 U.S. an ounce.