TSX Springs Ahead of Victoria Day Weekend

Equities in Canada’s largest centre extended gains on Friday ahead of a long weekend, led by miners and energy stocks, and on increased optimism on a deal over the U.S. debt ceiling that could avert a catastrophic default.

The TSX picked up 91.84 points to open Friday at 20,388.93.

The Canadian dollar inched higher 0.02 cents to 74.10 cents U.S.

Canadian markets will be shuttered Monday for Victoria Day.

Among company news, Edenbrook Capital, which owns 10.4% of Absolute Software Corp, said the deal to take the software firm private by Crosspoint Capital Partners significantly undervalued the firm. Absolute shares gained 21 cents, or 1.4%, to $15.49.

The Competition Bureau said it was suing Cineplex for advertising movie tickets at a lower price than what many consumers actually have to pay. Cineplex fell six cents to $9.97.

The union representing WestJet's pilots reached a tentative agreement with the Onex-owned airline, averting a strike set to begin as early as Friday. Onex shares fell six cents to $9.97.

In the economic docket, Statistics Canada says retail sales decreased 1.4% to $65.3 billion in March.

The agency says sales decreased in five of the nine subsectors, led by 4.4% decreases at motor vehicle and parts dealers and 3.9% drops at gasoline stations and fuel vendors.

ON BAYSTREET

The TSX Venture Exchange regained 1.62 points to 610.65.

All but one of the 12 TSX subgroups were in plus territory, with energy issues gushing 1.1%, while information technology and communications each up 0.6%.

Only consumer staples held out against the positive tide, nosing down 0.02%.

ON WALLSTREET

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The S&P 500 rose Friday as Wall Street continued monitoring the situation surrounding the debt ceiling, and traders looked to wrap up a solid week of trading.

The Dow Jones Industrials advanced 88.01 points to kick off the week’s last session at 33,623.96.

The S&P 500 progressed 14.27 points to 4,212.32.

The NASDAQ added 17.29 points to 12,706.13.

Foot Locker plunged 25% after missing first-quarter expectations on the top and bottom lines. Meanwhile, Deere rose 4% after beating fiscal second-quarter expectations.

The major averages are headed for weekly gains. The S&P 500 is up 2% week to date. That would be its biggest one-week advance since March. The NASDAQ, meanwhile, has risen 3.5% for the week. That would also be its best weekly performance since March. The Dow is up 0.8%.

A chunk of those gains came Thursday, as traders mounted bets that a U.S. debt ceiling deal could be reached. Comments from House Speaker Kevin McCarthy Thursday seemed to suggest a potential deal could come as soon as next week.

Nevertheless, SoFi’s Liz Young advised caution for investors, saying there are troubling signs ahead even as stocks continue to trade in a tight range in search of a catalyst.

Prices for the 10-year Treasury skidded, raising yields to 3.70% from Thursday’s 3.65%. Treasury prices and yields move in opposite
directions.

Oil prices regained 47 cents to $72.41 U.S. a barrel.

Gold prices recovered $3.40 to $1,963.20 U.S. an ounce.