TSX Gains Thursday



Equities in Toronto were stronger Thursday, largely credited to resource issues, as investors warmed to the idea that interest rates weren’t about to move up any time soon.

The TSX Composite climbed 75.76 points to conclude Thursday at 21,101.54.

The Canadian dollar rallied 0.29 cents at 74.22 cents U.S.

Energy was king of the hill Thursday, led by MEG Energy, stronger 92 cents, or 3.7%, to $25.55, while Tamarack Valley Energy vaulted nine cents, or 2.9%, to $3.22.

Utilities were also smarter, as Algonquin Power & Utilities claimed 32 cents, or 4.1%, to $8.22, while Brookfield Infrastructure got ahold of $1.08, or 2.6%, to $42.56.

Gold stocks were also stronger, with Eldorado Gold picked up 60 cents, or 3.7%, to $16.80, while New Gold moved higher four cents, or 2.4%, to $1.70.

Communications weighed, though, BCE sifting off 52 cents to $54.52, while Rogers slid 54 cents to $63.50.

Consumer staples sagged, as Maple Leaf Foods dipped 50 cents, or 1.9%, to $26.28, while Empire Company lost 65 cents, or 1.8%, to $35.01.

Real-estate stocks also suffered, as Boardwalk REIT units lost $1.58, or 2.2%, to $70.17, while SmartCentres REIT docked 46 cents, or 1.8%, to $24.49.

On the economic slate, Statistics Canada reported the number of employees receiving pay and benefits from their employer—measured as “payroll employment” in the Survey of Employment, Payrolls and Hours—decreased by 88,300 (-0.5%) in November, following a decline of 24,000 (-0.1%) in October.

ON BAYSTREET

The TSX Venture Exchange was unchanged Thursday at 550.17.

Eight of the 12 subgroups faced upward by day’s end, with energy rumbling 1.4%, utilities, better 1.2%, and gold, more solid 0.9%.

The four laggards were weighed most by communications, off 0.4%, consumer staples, trailing Wednesday by 0.3%, and real-estate weaker 0.2%.

ON WALLSTREET

The S&P 500 rose for a sixth straight day, overcoming a slump in Tesla as data indicated continued economic growth.

The Dow Jones Industrials boarded the “up” elevator 242.74 points to 38,049.13.

The S&P 500 index gained 25.61 points to 4,894.16, grabbing yet another all-time record.

The NASDAQ held onto gains of 28.58 points to 15,510.50.

Despite Thursday’s underperformance, the NASDAQ has outperformed this week, tracking to finish up 1.3%. The S&P 500 has advanced 1.1%, while the Dow is 0.5% higher on the week. Both the S&P 500 and NASDAQ have finished higher for past five sessions.

But a selloff in Tesla, a retail investor favorite, weighed on the market. Shares plunged 12% after the electric vehicle maker posted disappointing fourth-quarter results and warned of lower vehicle volume growth for 2024.

On the other hand, IBM jumped more than 9% after the technology company posted adjusted earnings and revenue that beat analysts’ predictions.

More than one-fifth of S&P 500 companies that have reported financials this earnings season, according to FactSet. Nearly 74% of those have surpassed Wall Street expectations, the firm’s data shows.

Gross domestic product data showed the U.S. economy grew at a rate of 3.3% in the fourth quarter. That’s much higher than the 2% expectation from economists polled by Dow Jones, underscoring continued economic resiliency despite interest rate hikes.

Thursday’s report also included encouraging data on the inflation front. The price index for personal consumption expenditures rose 2.7% on an annualized basis, down from 5.9% a year prior. So-called core PCE, which excludes food and energy, increased by 3.2%, down from 5.1%.

Prices for the 10-year Treasury gained, lowering yields to 4.13% from Wednesday’s 4.18%. Treasury prices and yields move in opposite directions.

Oil prices regained $2.15 to $77.24 U.S. a barrel.

Gold prices recaptured $3.50 to $2,019.50.

S&P Runs Win Streak to 6



Source link

About The Author