TSX on Verge of 8th Straight Gaining Session

Equities in Toronto made headway on Thursday, although the gains were capped by a dip in energy stocks, while investors remained optimistic on more potential trade deals around the world with the U.S.

The TSX Composite Index jumped 134.04 points midday to 25,826.49

The Canadian dollar subtracted 0.10 cents at 71.44 cents U.S.

In corporate news, Strathcona Resources sold its Montney assets for about $2.84 billion and acquired Hardisty Rail Terminal as part of its "core area consolidation" strategy. Strathcona shares charged ahead $2.74, or 10.1%, to $29.87.

Industrial stocks also rose, with Atkinsrealis Group up $9.43, or 12.4%, to $85.38 after the engineering services firm reported first-quarter profit and revenue above estimates.

Federal Finance Minister Francois-Philippe Champagne said on Wednesday the new Liberal government will table an economic update later in the year, implying no annual budget would be presented in the near term.

On the economic slate, Canada Mortgage and Housing Corporation reports housing starts for all areas in Canada increased 30% in April (278,606 units) compared to March (214,205 units).

Statistics Canada reported manufacturing sales declined 1.4% in March, mainly due to lower sales in the primary metal and petroleum and coal product subsectors. Conversely, the furniture and related product subsector posted the largest monthly gain.

Moreover, wholesale sales (excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain) rose 0.2% to $86.5 billion in March.

The Canadian Real Estate Association reported the number of sales recorded over Canadian MLS Systems was unchanged (-0.1%) between March and April, marking a pause in the trend of declining activity since the beginning of the year.

ON BAYSTREET

The TSX Venture Exchange galloped 3.98 points to 662.63.

All but three of the 12 subgroups by noon hour, with industrials surging 1.9%, while gold hiked 1.6%, and utilities were up 1.2%.

The three laggards proved to be energy, off 1.9%, health-care, ailing 0.6%, and information technology, retreating 0.4%.

ON WALLSTREET

The S&P 500 ticked higher on Thursday, putting its three-day winning streak at risk. The benchmark has been on a tear this week after the Trump administration and China hammered out a temporary suspension of their tit-for-tat tariff dispute.

The Dow Jones Industrials regrouped 118.8 points to break for lunch Thursday at 42,169.86,

Shares of Walmart dipped 1.2% after the company said it could raise prices in response to still-high tariffs from the Trump administration. Walmart reported better-than-expected earnings and revenue that matched Wall Street estimates.

The much-broader index recovered from early losses, collecting 12.66 points to 5,905.24

The NASDAQ Composite dipped 21.65 points to 19,125.16

Tech giants are putting up a strong showing week to date: Nvidia and Tesla are both up more than 14% and 13%, while Meta Platforms has added 10% in the period.

Amazon zoomed 7% and Alphabet is up more than 6% and 8%, The NASDAQ is higher by 6.% this week, trailed by the S&P 500, ahead 3.9%, and the Dow, up 1.7%.

Shares of Foot Locker surged 84% after the company announced that it would merge with Dick’s Sporting Goods for $2.4 billion. UnitedHealth slid 17% after The Wall Street Journal reported, citing people familiar, that the Justice Department is probing the insurer.

A UnitedHealth spokesman later told the media that the insurer has not been notified by the DOJ of the “supposed” investigation reported.

Traders also assessed the state of the economy on Thursday, with an unexpected decline in wholesale prices last month. The producer price index for April declined 0.5% month-over-month, the Bureau of Labor Statistics said.

Economists polled by Dow Jones forecast PPI would increase 0.3% on the month. Retail sales increased 0.1% in April, which matched consensus estimates, while industrial production numbers for April decreased slightly more than expected.

Prices for the 10-year Treasury climbed, lowering yields to 4.46% from Wednesday’s 4.53%. Treasury prices and yields move in opposite directions.

Oil prices capsized $1.85 to $61.30 U.S. a barrel.

Prices for gold regained $31.20 to $3,219.50