Energy, Mining Stocks Power Index Up
Equities appeared Friday to have turned a corner, bringing the totals for the month to highs they haven’t seen in months.
The TSX popped 236.21 points, or 1.2%, to close Friday, the week and month at 19,692.82. On the week, the index hurtled higher 710 points, or 3.5%.
The Canadian dollar gathered 0.4 cents to 78.12 cents U.S.
Markets in Canada will be shuttered Monday for Civic Day.
Energy did most of the gaining, with Secure Energy Services springing 41 cents or 6.8%, to $6.46, while Advantage Oil triumphed 54 cents, or 5.2%, to $11.02.
In materials, Capstone Copper hiked 37 cents, or 14.3%, to $2.95, while Ivanhoe Mines captured 56 cents, or $7.92.
Industrials also had a banner day, with Cargojet jumping $5.55, or 3.9%, to $148.44, while TFI International spiked $6.60, or 5.4%, to $127.92.
Only consumer staples stubbed their toes, in part the fault of Loblaw Companies, off $3.24, or 2.7%, to $116.44, while George Weston dipped $5.64, or 3.6%, to $153.08.
On the economic calendar, Statistics Canada reported real gross domestic was essentially unchanged in May as growth in services-producing industries was offset by declines in goods-producing industries.
The TSX Venture Exchange chugged ahead 10.63 points, or 1.7%, to 646.04, for a gain on the week of 38 points, or 6.3%.
All but one of the 12 TSX subgroups moved higher Friday, with energy rumbling 2.8%, materials better by 2.5%, and industrials solidifying 2%.
Only consumer staples ended in the red, and 0.8% at that.
Stocks extended their two-day rally on Friday as investors digested strong tech earnings and looked past concerns about high inflation and a recessionary environment.
The Dow Jones Industrials vaulted 315.5 points to close Friday, the week and July at 32,845.13.
The S&P 500 sprang up 57.86 points, or 1.4%, to 4,130.29
The NASDAQ ballooned 228.10 points, or 1.9%, to 12,390.69.
For the week, the Dow ended higher by 3%, while the S&P 500 took on 4.3% and the NASDAQ gained 4.7%.
The Dow rose to a 6.7% gain for July. The S&P 500 added 9.1% for the month and the NASDAQ, while still in bear market territory, is up 12.4%. Those were the biggest monthly gains for all three indexes since November 2020.
That performance is a stark contrast from the previous six months when stocks tumbled to their June bear market levels. The market reversed as investors’ fears about the aggressive pacing of the Federal Reserve’s interest rate increases started to wane and the idea that inflation has perhaps peaked began to settle in.
On Friday investors also got the final reading of the University of Michigan Consumer Sentiment Index, which came in at 51.5 for July. That’s a slight improvement over the preliminary reading and up from the June all-time low of 50.
More than half of S&P 500 companies have reported earnings, with 72% of those names beating expectations
Treasury prices slid once again, raising yields to 2.68%, from Thursday’s 2.67%. Treasury prices and yields move in opposite directions.
Oil prices added $1.67 to $98.09 U.S. a barrel.
Gold prices gained $9.60 to $1,759.90 U.S. an ounce.