Stocks Remain Strong Through Noon Hour

Canada's main stock index slipped on Thursday following a mixed bag of results, while gloomy forecasts by U.S. companies and an early
reading showing the economy contracted again on the other side of the border exacerbated recession fears.

The TSX gained 64.84 points to move into noon hour EDT Thursday at 19,319.40.

The Canadian dollar eased 0.10 cents to 78 cents U.S.

Weighing on the index, Bausch Health dropped $5.64, or 50.6%, to $5.50, its lowest level in more than 25 years, dragging the healthcare index down.

Agnico Eagle Mines jumped $4.11, or 8.1%, to $54.77, on reporting better-than-expected quarterly earnings, while cannabis producer Tilray Brands gained 32 cents, or 7.7%, to $4.50, on a jump in revenue.

Cenovus Energy regained 18 cents to $23.81, even as it reported a near 11-fold surge in second-quarter profit, helped by its purchase of rival Husky and rising energy prices after the Russian invasion of Ukraine.

Ballard Power Systems jumped $1.37, or 15.1%, to $10.44, tracking the jump in U.S. clean energy stocks after Democratic Senator Joe Manchin, a key swing vote, told Senate Majority Leader Chuck Schumer on Wednesday he will now support proposal for new climate change spending.

On the economic calendar, Statistics Canada reported the number of employees receiving pay or benefits from their employer decreased by 26,100 (or 0.1%) in May, the first decline since May 2021.

ON BAYSTREET

The TSX Venture Exchange pushed higher 8.54 points, or 1.4%, to 628.30.

All but three of the 12 TSX subgroups moved higher, with gold brighter 3%, materials stronger 2.4%, and health-care haler 1.3%.

The three laggards were communications, down 0.3% in the first hour, while information technology and financials each fell 0.2%.

ON WALLSTREET

U.S. equities rose on Thursday even after the latest GDP showed a second-straight contraction as investors bet the economic downturn would soon cause the Federal Reserve to end its aggressive hiking campaign.

The Dow Jones Industrials came out of their hole and leaped 224.59 points to pause for midday at 32,422.18.

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The S&P 500 restored 27.72 points to 4,051.33

The NASDAQ regained 56.46 points to 12,088.89.

All of the major averages cut steeper losses from earlier in the session and are on pace for a winning week as well as their best month of 2022.

The moves came after the Bureau of Economic Analysis reported U.S. economic growth fell 0.9% in the second quarter. The Dow Jones estimate was for a gain of 0.3%. First-quarter GDP declined by 1.6%.

Investors also continued to monitor companies’ second-quarter results Thursday. Shares of Meta Platforms dipped 5.9% on the back of disappointing quarterly numbers.

Shares of Comcast slid more than 9% after reporting it failed to add broadband subscribers for first time ever.

Charter Communications fell 7%. The communication services sector was down by 2%, after posting its best daily performance since April 2020 on Wednesday.

Stanley Black & Decker shares tumbled about 15% after the manufacturing company missed earnings and revenue estimates and cut its earnings guidance.

Nearly 49% of S&P 500 companies have reported earnings through Thursday’s open. Of those companies 71.5% have beaten estimates.
Investors are looking ahead to results from Apple, Amazon, Intel and Roku slated for after the bell.

Treasury prices rose, lowering yields to 2.71%, from Wednesday’s 2.79%. Treasury prices and yields move in opposite directions.

Oil prices gained 81 cents to $98.07 U.S. a barrel.

Gold prices gathered $31.80 to $1,750.90 U.S. an ounce.