TSX Finds Way into Green

Canada's main stock index fell on Thursday, with technology stocks leading the declines after the U.S. Federal Reserve signaled that more interest rate hikes are likely.

The TSX regained 12.17 points at noon Thursday to 20,027.26.

The Canadian dollar inched up 0.06 cents to 75.58 cents U.S.

Gibson Energy lost 1.6%, hitting an over two-year low intraday, as the energy infrastructure company plans to buy South Texas Gateway oil terminal from Buckeye Partners and its partners for $1.1 billion to expand into U.S. crude oil export markets.

Guru Organic Energy gained 5% after Stifel upgraded its rating on the beverage stock to "buy" from "hold".

On the economic beat, the Canadian Real Estate Association stops by with MLS listing for May. Canada Mortgage and Housing Corporation said housing starts numbered 230,205 units in May down from 240,318 units in April.

Meantime, Statistics Canada says manufacturing sales rose 0.3% in April, mainly driven by higher sales in the motor vehicle parts as well as the petroleum and coal product industries.

ON BAYSTREET

The TSX Venture Exchange nicked higher 1.03 points to 611.02.

Eight of the 12 TSX subgroups were lower midday, weighed most by health-care, ailing 1.3%, gold, duller in price 1%, and information technology, down 0.9%.

The four gainers were energy, growing 1.5%, consumer staples, up 0.3%, and financials, richer 0.1%.

ON WALLSTREET

Read:

• Novel Mechanisms Leading the Charge in Fight Against Cancer, Opening Door to New Drugs & Therapies

• Significant Oncology Results Set to be Delivered as Oral Presentations at ASCO 2023

• Promising New Cancer Treatment Data to Be Presented at 2023 ASCO Annual Meeting

• Global Lithium Supply Under Pressure as South American Nations Discuss "Lithium OPEC"

• International Lithium Buyers Looking to South America to Fill Supply Gaps

The Dow Jones Industrial Average on Thursday rallied more than 300 points and the S&P 500 touched a fresh 13-month high, as investors bet the Federal Reserve was close to done raising rates after the central bank this week paused its rate-hiking campaign following 10 consecutive increases.

The 30-stock index leaped 339.93 points, or 1%, to pause for lunch at 34,319.26.

The S&P 500 added 35.4 points to 4,407.99.

The NASDAQ index perked 99.68 points to 13,726.16.

Additional economic data releases Thursday morning gave investors and policymakers better insight on the strength of the labour market and consumer spending. Weekly jobless claims numbers were slightly above estimates at 262,000 compared to a Dow Jones estimate of 245,000, while retail sales ticked up 0.3%.

Fed Chair Jerome Powell said during a post-meeting press conference that the Federal Open Market Committee would use the six weeks until its next meeting to “take into account the cumulative tightening of monetary policy.” He added that a decision on July’s policy move has not yet been made. The upswing on Thursday shows investors remain willing to place bets on the overhang of uncertainty heading into the July FOMC meeting.

Prices for the 10-year Treasury spiked, dropping yields to 3.74% from Wednesday’s 3.80%. Treasury prices and yields move in opposite directions.

Oil prices recovered $2.12 to $70.39 U.S. a barrel.

Gold prices regained 60 cents to $1,969.50 U.S. an ounce.