Canada’s main stock index opened higher on Thursday, led by gains in tech and consumer staples stocks, after the U.S. retail sales data quelled recessionary fears in the world’s largest economy.
The TSX Composite Index shot higher 137.73 points, to open Thursday at 22,897.74.
The Canadian dollar eked ahead 0.02 cents to 72.90 cents U.S.
In corporate news, billionaire investor William Ackman said he acquired new stakes in sportswear company Nike and investment management firm Brookfield in the second quarter. Brookfield shares in Toronto captured 67 cents, or 1.1%, to $64.20.
On the economic beat, Statistics Canada told us wholesale trade Wholesale sales fell 0.6% to $82.4 billion in June, while motor vehicle sales paled to 168,000 last month from 184,700 the previous month. The Canadian Real Estate Association reported home sales activity recorded over Canadian MLS® Systems edged back by 0.7% on a month-over-month basis in July, giving back a small portion of June’s post-first rate cut gain.
ON BAYSTREET
The TSX Venture Exchange moved forward 4.95 points to 553.24.
All but two of the 12 TSX subgroups made progress, led by information technology, up 1.8%, health-care, haler by 1,4%, and energy, 1.1% more energetic.
The two laggards were gold, down 0.8%, and communications, eking back 0.02%.
ON WALLSTREET
Stocks rallied on Thursday as investors regained confidence in the economy following encouraging consumer and labor data that helped ease recession worries.
The Dow Jones Industrial index gained 376.24 points to begin Thursday at 40,384.63.
The S&P 500 index picked up 63.63 points, or 1.2%, to 5,518.84.
The NASDAQ barreled ahead 314.63 points, or 1.8%, to 17,507.23.
After a 3% gain this week, the S&P 500 is now less than 3% below its record. The three major U.S. indexes are now trading above their Aug. 2 closing level, which was the session before the global stock market rout on Aug. 5 that was largely driven by investors’ concerns about an economic slowdown and an unwinding of a popular hedge fund currency trade.
Dow component Walmart added to the momentum, with a raised outlook and an earnings report that topped analyst estimates, sending shares up more than 7%. Elsewhere, Cisco Systems jumped more than 5% after announcing a fiscal fourth-quarter earnings and revenue beat and cuts to its global workforce.
Retails sales increased 1% in July, far surpassing an estimate from Dow Jones that forecast a 0.3% uptick. Also separately, weekly jobless claims fell for the week. The data served as a boon to investors and a broader market trying to mount a comeback from an August rout tied to concerns about a slowing economy that arose following July’s disappointing jobs report on August 2.
Prices for the 10-year Treasury withered, raising yields to 3.93% from Wednesday’s 3.82%. Treasury prices and yields move in opposite directions.
Oil prices gained 90 cents at $77.88 U.S. a barrel.
Gold prices advanced $5.10 to $2,485.40.
