Stocks Shrug off Central Bank Decision
Equities in Canada’s largest centre finished in the green Thursday, led by resource issues.
The TSX Composite index strengthened 47.2 points to end Thursday at 20,049.47
The Canadian dollar eked higher 0.16 cents to 82.70 cents U.S.
The Bank of Canada on Wednesday left its key interest rate unchanged at a record low 0.25%, as expected, and said the economy would "rebound strongly" as vaccinations against COVID-19 picked up.
Gold led advancers, with New Gold up 12 cents, or 4.8%, to $2.62, while Alamos Gold picking up 29 cents, or 2.8%, to $10.71.
In other resources, Dundee Precious Metals jumped 36 cents, or 4.4%, to $8.58, while Endeavour Silver Mines flying 39 cents, or 4.5%, to $9.03.
Among utilities, Boralex tacked on $1.08, or 2.8%, to $38.53, while Innergex acquired 45 cents, or 2.2%, to $21.14.
Health-care concerns sagged, with Tilroy sliding $1.76, or 6.8%, to $24.24, while Aurora Cannabis descended 45 cents, or 3.6%, to $11.93.
In financials, Equitable Group settled back $1.66, or 1.2%, to $137.45, while iA Financial dipped 36 cents, or 1.3%, to $69.26.
In the communications field, AcuityAds Holdings gave back $1.16, or 8.3%, to $12.81, while Shaw Communications fell 13 cents to $36.21.
The TSX Venture Exchange gained 3.07 points to 979.91.
All but three of the 12 TSX subgroups ended the day in plus territory, with gold surging 2.3%, materials better by 1.4%, and utilities improving 0.6%.
The three laggards were health-care, sagging 2.4%, while financials dipped 0.2%, and communications faded 0.1%.
The S&P 500 rose to an all-time high on Thursday as investors shrugged off a key inflation report that showed a bigger-than-expected increase in price pressures.
The Dow Jones Industrials came off its high of the day, but still gained 19.1 points to finish at 34,466.24.
The broader index gained 19.63 points to 4,239.18, overtaking its May 7 high after the market traded sideways for a month.
The NASDAQ jumped 108.58 points to 14,020.33.
UPS shares rose about 1% after an upgrade from JPMorgan. Shares of Boeing were higher, but Delta Air Lines slipped.
Video-game retailer and meme stock GameStop fell 27% even after the company tapped former Amazon executive Matt Furlong to be its next CEO and said that sales rose 25% last quarter. The company also said it may sell up to five million additional shares.
Consumer prices for May accelerated at their fastest pace since the summer of 2008 amid the economic recovery from the pandemic-triggered recession, the U.S. Labor Department reported Thursday.
The consumer price index, which represents a basket including food, energy, groceries and prices across a spectrum of goods, rose 5% from a year ago. Economists surveyed by Dow Jones had been expecting a gain of 4.7%.
A separate report released Thursday showed that jobless claims for the week ended June 5 came in at 376,000, versus a Dow Jones estimate of 370,000. The total still marked the lowest of the pandemic era.
Prices for 10-Year Treasurys were sharply higher, lowering yields to 1.44% from Wednesday’s 1.49%. Treasury prices and yields move in opposite directions.
Oil prices regained 19 cents to $70.15 U.S. a barrel.
Gold prices gained $5.80 to $1,901.30 U.S. an ounce.