Canada’s main stock index opened higher on Friday as investors cheered softer retail sales data which cemented bets of a June interest rate cut by the Bank of Canada, while resource stocks led gains on higher commodity prices.
The TSX jumped 122.81 points to begin Friday at 22,323.60.
The Canadian dollar hiked 0.3 cents at 73.12 cents U.S.
On a weekly basis, the benchmark index looks set for its biggest drop since mid-April, having dipped 141 points, or 0.6% since last Friday.
Gildan Activewear said its board of directors resigned, and chief executive Vince Tyra stepped down to be replaced by former top boss Glenn Chamandy. Gildan shares picked up $1.44, or 3%, to $50.25.
Lightspeed Commerce climbed 79 cents, or 4%, to the top of TSX at $20.74, after CIBC upgraded its rating to “outperformer” from “neutral” and hiked its price target on the stock.
In matters economic, retail sales decreased 0.2% to $66.4 billion in March. On a weekly basis, the benchmark S&P/TSX index looks set for its biggest drop since mid-April.
Traders now anticipate the Bank of Canada to cut interest rates at its June 5 monetary policy meeting with a 60% probability, owing to the drop in inflation and lackluster economic growth.
ON BAYSTREET
The TSX Venture Exchange recovered 1.82 points to 603.65.
All but two of the 12 TSX subgroups were higher mid-morning, with gold better by 1.2%, while materials improved 1%, and energy gained 0.9%.
The two laggards proved to be communications, which lost 0.02%, while utilities were off 0.01%.
ON WALLSTREET
Stocks were slightly higher on Friday, following the worst session in more than a year for the Dow Jones Industrial Average.
The Dow Jones Industrials sagged 17.78 points to 39,047.48.
The S&P 500 regained 22.27 points to 5,290.11
The NASDAQ grew 118.74 points to 16,736.03.
The S&P 500 is tracking for a weekly loss of 0.7%, while the Dow is on pace to drop about 2.4%. The NASDAQ is the outperformer, with a modest gain of 0.3%.
Shares of Workday fell more than 10% after the company reduced its subscription revenue guidance for the full year. Intuit also fell 8.3% on weak forward guidance. Meanwhile, Deckers Outdoor surged 11% after posting an earnings and revenue beat.
During Thursday’s session, chipmaker Nvidia added more than 9%, propelled by strong guidance in addition to an earnings beat and a 10-for-1 stock split. Nvidia has become a key bellwether for the broader market, and is the de facto leader of the so-called “Magnificent Seven.” Nvidia was last trading marginally lower Friday.
The rise in the artificial intelligence darling did not help the market, with the three major averages ending Thursday’s session lower. The Dow suffered its worst session since March 2023.
Demand for durable goods was much higher than expected in April, the Commerce Department reported Friday. Orders for long-lasting items such as appliances, cars and airplanes rose 0.7% for the month, slightly below the 0.8% increase in March but far better than the Dow Jones consensus estimate for a 1% decline. Excluding transportation items, orders still accelerated 0.4%. However, new orders were flat, excluding defense.
Prices for the 10-year Treasury were unchanged from Thursday’s 4.48%. Treasury prices and yields move in opposite directions.
Oil prices picked up 67 cents to $77.54 U.S. a barrel.
Gold prices regained $3.70 to $2,340.90.