Canada Markets closed

Stocks Muscle Up by Noon

Baystreet.ca
·3 min read

Canada's main stock index inched higher on Thursday, helped by gains in energy stocks on higher oil prices, while a jump in monthly exports and a record pace of U.S. jobs growth also bolstered sentiment.

The S&P/TSX Composite Index leaped 225.31 points, or 1.5%, to greet noon Thursday at 15,740.53.

The Canadian dollar dipped 0.06 at 73.56 cents U.S.

The largest percentage gainers on the TSX were Brookfield Property Partners, which jumped $1.69, or 12.6%, to $15.14, and Ballard
Power Systems which rose $2.54, or 12.2%, to $23.43.

Ero Copper fell 69 cents, or 3.5%, the most on the TSX, to $18.98. The second biggest decliner was Celestica, down 13 cents, or 1.4%,
to $9.19.

Economically speaking, Statistics Canada reported exports increased 6.7% in May. Meanwhile, imports decreased 3.9%. As a result, Canada's merchandise trade deficit with the world narrowed from $4.3 billion in April to $677 million in May.

Also, the Markit Canada Manufacturing Purchasing Managers Index registered 47.8 in June, up from 40.6 in May and well above the survey-record low seen during April (33.0), but below below the neutral 50.0 threshold.

ON BAYSTREET

The TSX Venture Exchange gained 5.74 points to 625.87.

All 12 TSX subgroups gained ground midday, with information technology sprinting 3.7%, real-estate up 2.3%, and energy soaring 1.7%.

ON WALLSTREET

Stocks rose on Thursday as investors cheered a bigger-than-expected increase in jobs in June as the economy tries to claws back from the coronavirus shutdown.

The Dow Jones Industrials popped 227.58 points by noon time at 25,962.55.

The S&P 500 gained 30.45 points, or 1%, to 3,146.31.

The NASDAQ Composite hiked 133.09 points, or 1.1%, to 10,267.72, a new record high.

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Boeing contributed to the gains, rising 0.6% after the airplane maker completed recertification flights for its grounded 737 Max jet.

The major averages, however, cut their gains after Florida reported a one-day spike of more than 10,000 coronavirus cases. The U.S. also reported a record of more than 50,000 cases in one day on Wednesday.

Stocks that would benefit from an economic reopening rolled over. United Airlines and American traded slightly lower after jumping earlier in the day. Cruise operators Carnival, Norwegian Cruise Line and Royal Caribbean were down at least 0.2% each.

The government’s June jobs report showed 4.8 million jobs were created. Economists were expecting 2.9 million jobs were created. The unemployment rate fell to 11.1% from 13.3% in May. Economists were expecting a rate of 12.4%.

Last month, economists forecast a loss of 8 million jobs in May and the economy gained 2.5 million payrolls instead.

Meanwhile, weekly jobless claims data was released Thursday morning.

The U.S. Labor Department said Thursday that initial jobless claims stateside rose by 1.427 million in the week ending June 27. Economists expected initial U.S. jobless claims to rise by another 1.38 million, down from 1.48 million the week earlier.

U.S. markets will be closed on Friday for the July Fourth holiday.

Prices for the 10-Year Treasury gained ground, lowering yields to 0.67% from Wednesday’s 0.68%. Treasury prices and yields move in opposite directions.

Oil prices took on 35 cents to $40.17 U.S. a barrel.

Gold prices added $10.70 to $1,790.60 U.S. an ounce.