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Rally Continues into Friday Closing Bell

Baystreet.ca
·3 min read

Equity traders in Toronto warmed to the news that interest rates may not be raised anytime soon, and enjoyed the momentum which carried into the weekend.

The TSX Composite gained 198.5 points, or 1%, to end a recovery week at 19,824.85. On that week, the index gained 1.087 points, or 5.8%.

The Canadian dollar improved 0.41 cents at 73.16 cents U.S.

Gold stocks, well, took the gold, with Equinox surging 42 cents, or 6.7%, to $6.65, while Sandstorm Gold gained 41 cents, or 6.5%, to $6.68. Among materials, First Quantum Minerals rumbled $1.68, or 10.7%, to $17.40, while Endeavour Silver popped 26 cents, or 6.5%, to $6.68.

In real-estate, Colliers International Group rolled $12.90, or 10.9%, to $131.49, while Allied Properties REIT units took on 76 cents, or 4.5%, to $17.81.

Energy, however, plunged, with Paramount Resources tumbling $1.60, or 4.9%, to $31.41, while MEG Energy ditched $1.24, or 4.4%, to $26.88.

In utilities, Brookfield Renewable Partners slid 68 cents, or 2.1%, to $31.45, while Brookfield Infrastructure Partners shed 52 cents, or 1.4%, to $36.86.

Statistics Canada informs us the economy created 18,000, or 0.1%, in October and the unemployment rate rose 0.2 percentage points to 5.7%, marking the fourth monthly increase in the past six months.

ON BAYSTREET

The TSX Venture Exchange gained 5.31 points, or 1%, to 525.25. On the week, the gain was 4.7 points, or 0.9%.

All but two of the 12 TSX subgroups stayed positive, real-estate collecting 3.7%, gold was 3% higher, and materials, up 2.9%.

The two laggards were energy, down 1.4%, while utilities lost 0.02%

ON WALLSTREET

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Stocks rose Friday after a soft jobs report drove bond yields lower to cap the stock market’s best week in 2023.

The Dow Jones Industrials leaped 222.24 points to 34,061.32.

The S&P 500 index progressed 40.56 points to 4,358.34.

The NASDAQ surged 184.09 points, or 1.4%, to 13,478.28.

Equities are on pace for sizable weekly gains as investors grow hopeful that the Federal Reserve’s rate-hiking campaign is over. The Dow was up by more than 5% and on course for its best week since October 2022. The S&P 500 is higher by more than 6%, and on track for its first five-day winning streak since June. The NASDAQ advanced more than 6%.

The October jobs report on Friday came in weaker than expectations, showing the Fed’s attempt to cool the economy and stifle inflation could be working. The U.S. economy last month added 150,000 jobs, below the 170,000 payrolls increase consensus estimate from Dow Jones, and lower than September’s blowout of 297,000 jobs added. The unemployment rate rose to 3.9%, compared to expectations that it would hold steady at 3.8%.

Apple fell 1.5% after the iPhone maker issued a weak revenue outlook for the December quarter. Though the company beat on the top and bottom lines in its fiscal fourth quarter, overall sales declined for the fourth quarter in a row. Elsewhere, Block popped 16% on an earnings beat and a raise on full-year guidance, while Paramount Global jumped 4.5% on a strong quarterly report.

Prices for the 10-year Treasury popped, lowering yields to 4.57% from Thursday’s 4.67%. Treasury prices and yields move in opposite directions.

Oil prices docked $1.49 to $80.97 U.S. a barrel.

Gold prices brightened $6.20 to $1,999.70.