Early Gains Sighted as TSX Wraps up Week
Equities in Toronto opened higher on Friday, boosted by gains in the information and technology sector, after concerns around immediate U.S. military involvement in the Israel-Iran conflict were temporarily allayed.
The TSX Composite Index regained 79.39 points to begin the week’s last session at 26,585.39
The Canadian dollar skidded 0.18 cents to 72.84 cents U.S.
The White House said on Thursday President Donald Trump will decide on whether to join Israel in the war in the next two weeks.
Diplomatic efforts are also underway, with the U.K., French and German delegates scheduled to meet Iranian officials in Geneva later in the day.
In other major developments, Prime Minister Mark Carney said on Thursday Canada could increase counter tariffs on U.S.-produced steel and aluminum if he does not reach a broader trade deal with Trump within 30 days.
The economic calendar was a busy one Friday, with retail sales hiking 0.3% to $70.1 billion in April.
The new housing price index decreased by 0.2% percent in May from -0.4% in April.
Statistics Canada also reported its Industrial Product Price Index declined 0.5% month over month in May and increased 1.2% year over year. Its Raw Materials Price Index fell 0.4% month over month and declined 2.8% year over year.
ON BAYSTREET
The TSX Venture Exchange fell 1.94 points to 714.03.
All but three of the 12 TSX subgroups were ahead of the game starting out, led by health-care, better by 0.9%, information technology, improving 0.6%, and industrials, up 0.5%.
The three laggards were utilities and energy, each slipping 0.3%, and consumer staples, inching down 0.03%.
ON WALLSTREET
Stocks were relatively unchanged on Friday after Federal Reserve Governor Christopher Waller said inflation was tame enough that the central bank could cut rates at its next meeting, a more optimistic view than Chair Jerome Powell gave on Wednesday.
The 30-stock index regained 81.4 points to start Friday at 42,253.06.
The S&P 500 index notched 0.79 points to 5,981.66.
The NASDAQ Composite dipped 27.49 points, to 19,518.78.
For the week, the S&P 500 has traded up with a gain of 0.4%. The 30-stock Dow has risen by 0.3%, while the NASDAQ has jumped about 1%.
CarMax shares surged $3.22 or 5% early Friday, to $67.55, after its first-quarter results topped Wall Street’s expectations.
Markets were closed Thursday for the “Juneteenth” holiday.
Stocks were relatively unchanged on Friday after Federal Reserve Governor Christopher Waller said inflation was tame enough that the central bank could cut rates at its next meeting, a more optimistic view than Chair Jerome Powell gave on Wednesday.
Fed Chair Jerome Powell said Wednesday the central bank was in no hurry to cut benchmark rates and will remain data dependent, especially as it remains unclear how Trump’s tariffs will impact the economy. Stocks closed slightly lower that day following those remarks.
Trump ripped into Powell again Thursday, saying the Fed Chair is costing the U.S. “hundreds of billions of dollars” by delaying rate cuts.
Investor fears around the conflict between Israel and Iran, which has yet to cool, were tamed after Trump said Thursday that he would decide whether to strike Iran within the next two weeks but wanted to allow for “a substantial chance of negotiations.”
Prices for the 10-year Treasury were lower, lifting yields to 4.42% from Wednesday’s 4.39%. Treasury prices and yields move in opposite directions.
Oil prices dropped 15 cents to $74.99 U.S. a barrel.
Gold prices slid $25.40 to $3,384.50 U.S. an ounce.
