Canada’s main stock index jumped on Thursday, led by the financial sector that gained on upbeat quarterly results from industry giants, while a slowdown in the U.S. economic growth for the first quarter lifted market sentiment.
The S&P/TSX Composite Index remained positive 177.81 points by noon EDT Thursday to 22,075.79.
The Canadian dollar hiked 0.28 cents at 73.09 cents U.S.
EQB Inc was the top performer on the financials index, jumping $7.13, or 9%, to $85.96, as the bank beat its first-quarter revenue estimates.
The Royal Bank of Canada added $6.78, or 4.8%, to $147.74 after surpassing analysts’ estimates for quarterly profit, driven by strength in its capital market business and core personal banking segment.
Canadian Imperial Bank of Commerce also beat profit expectations on capital markets strength, advancing $3.24, or 5%, to $67.90.
The information technology index was the sole decliner, after Descartes Systems slipped $7.22, or 5.4%, to $126.67, to the bottom of the TSX following its quarterly results.
In matters economic, payroll numbers came out for March, and showed the number of employees receiving pay and benefits from their employer increased by 51,400 (+0.3%) in March following an increase of 14,600 (+0.1%) in February. On a year-over-year basis, payroll employment was up by 232,100 (+1.3%) in March.
ON BAYSTREET
The TSX Venture Exchange remained buoyant 1.6 points to 610.62.
All but one of the 12 subgroups were positive, with financials stronger 1.6%, while utilities grabbed 1.2%, and gold shone brighter 1%.
Only information technology lost ground, and only 0.8% at that.
ON WALLSTREET
Stocks fell Thursday, as shares of Salesforce slid on a quarterly revenue miss and soft guidance, and traders looked ahead to the release of key U.S. inflation data.
The Dow Jones Industrial Average lost 319.19 points to move into afternoon at 38,122.35.
The S&P 500 slid 16.49 points to 5,250.40.
The NASDAQ lost 88.08 points to 16,832.50.
Salesforce plunged more than 20% after missing revenue expectations for the fiscal first quarter. The company’s earnings and revenue outlook for the second quarter also fell short of the Street’s estimates. On the other hand, Foot Locker rallied more than 22% on stronger-than-expected earnings per share.
Thursday’s moves come amid a tough, holiday-shortened trading week. The S&P 500 has slipped around 1.2%, while the NASDAQ Composite has shed 0.7% — putting both on track to snap five-week winning streaks. The Dow has tumbled more than 2%, on pace for its second straight losing week.
Despite the rocky week, the indexes are all on track to end the trading month, which also concludes with Friday’s closing bell, higher. The NASDAQ Composite has taken on more than 7% in May, the S&P 500 having jumped more than 4%. The Dow has risen just 0.7% in the month.
Investors are looking toward Friday’s release of the personal consumption expenditures price index report for April, which is the Federal Reserve’s preferred inflation gauge.
Prices for the 10-year Treasury strengthened, lowering yields to 4.56% from Wednesday’s 4.74%. Treasury prices and yields move in opposite directions.
Oil prices ditched 79 cents to $78.44 U.S. a barrel.
Gold prices added 80 cents to $2,342.00.