Telecoms, Energy Prove Big Winners
Stock markets in Canada’s largest centre bolted higher on to end the week as gains in telecoms and energy powered things upward; this, after a strong domestic jobs data cemented expectations of fourth interest rate hike of the year next week.
The S&P/TSX Composite Index climbed 105.17 points to close a short week at 16,371.78
The Canadian dollar gained 0.2 cents at 76.33 centsU.S.
Supporting the market was the telecoms sector, in which BCE Inc and Rogers Communications were the biggest spurs. BCE galloped 89 cents, or 1.7%, to $54.40. Rogers shares popped $1.19, or 1.9%, to $64.11.
Cogeco Communications rose $2.33, or 3.6%, to $66.35, after National Bank of Canada upgraded the stock to “outperform”.
Energy stocks also had a good day, with Imperial Oil gushing 45 cents, or 1%, to $43.85, while Canadian Natural Resources rocketed $1.21, or 2.6%, to $47.78.
Information technology issues found traction, as Constellation Software grew $17.21, or 1.7%, to $1,039.21, while Shopify hiked $2.38, or 4.8%, to $205.14.
Centerra Gold fell 41 cents, or 6%, to $6.43, while Goldcorp lost 20 cents, or 1.1%, to $18.30
Health-care stocks were ailing Friday, too, as Canopy Growth deducted 30 cents to $39.40, while Aphria retreated six cents to $11.69.
On the economic scene, Statistics Canada says the economy created 32,000 jobs in June, after two consecutive months of little change.
However, with more people searching for work, the unemployment rate increased by 0.2 percentage points to 6.0%.
Canada’s merchandise trade deficit with the world totaled $2.8 billion in May, widening from a $1.9-billion deficit in April. Imports rose 1.7% while exports edged down 0.1%.
Western University’s IVEY School of Business reported Friday its Purchasing Managers Index came in for June at 63.1, up from May’s reading of 62.5, and a 61.6 level for June 2017.
The TSX Venture Exchange lost 1.81 points to 740.10
All but two of the 12 TSX subgroups were higher on the day, as telecoms sprang to life 1.7%, energy gushed 1.5%, and information technology spiked 1.3%
The two laggards were gold, down 0.7%, and health-care, off 0.3%.
Stocks rose on Friday on the back of stronger-than-expected employment data. Investors also shrugged off concerns over an escalating trade war between the U.S. and China.
The Dow Jones Industrials was off its highs of the day, but still positive 99.74 points to 24,456.48, with Apple and Microsoft outperforming.
The S&P 500 gained 23.21 points to 2,759.82, with health care rising 1.5%.
The NASDAQ hiked 101.96 points, or 1.3%, to 7,688.39. Facebook rose to an all-time high
U.S. tariffs on $34 billion of Chinese goods came into effect earlier on Friday. China responded to the fresh tariffs by imposing its own retaliatory levies on imports from the States.
A spokesperson for China’sMinistry of Commerce stated Friday that while Beijing had refused to “fire the first shot,” it was obligated to counter the U.S.’ actions after Washington “launched the largest trade war in economic history.”
Boeing rose 0.4%, erasing earlier losses. Caterpillar and General Motors, meanwhile, closed off their lows of the day. These companies are sensitive to trade news because of their overseas revenue exposure.
Biogen shares rose nearly 20% after the company announced positive results from a study on a drug aimed at treating early Alzheimer’s disease.
The U.S. economy added 213,000 jobs in June, while economists expected a gain of 195,000. Unemployment, however, rose slightly to 4% from 3.8%. Wage growth also missed expectations, climbing 2.7% on a year-over-year basis. Economists expected growth of 2.8%.
Prices for the benchmark for the 10-year U.S.Treasury gained slightly, lowering yields to 2.83% from Thursday’s 2.84%. Treasury prices and yields move in opposite directions.
Oil prices regained 88 cents to $73.82U.S. a barrel.
Gold prices faded $2.70 to $1,256.10U.S. an ounce.
This article provided by NewsEdge.