Slight Gains for TSX to Begin June

Canada's main stock index was little changed on Thursday as data showing domestic factory activity contracted in May offset investor optimism over a likely pause in U.S. rate hikes and a debt ceiling deal.

The TSX began Thursday up 27.79 points to 19,600.03.

The Canadian dollar gained 0.19 cents to 73.89 cents U.S.

Among individual stocks, Laurentian Bank of Canada beat quarterly adjusted earnings and raised dividend. Laurentian shares picked up 90 cents, or 2.9%, to $31.47.

Credit Suisse turned bullish on utility Boralex, while Eight Capital started coverage on AI services platform Coveo Solutions Inc with a "buy" rating. Boralex shares picked up $1.19, or 3.2%, to $38.70, while those for Coveo climbed 44 cents, or 6.1%, to $7.62.

On the economic scene, the S&P Global Canada Manufacturing PMI sank below 50 for the second time in three months, to 49 in May after hitting 50.2 in April. Any reading below 50 indicates contraction in the sector.

ON BAYSTREET

The TSX Venture Exchange dipped 1.13 points to 596.95.

Eight of the 12 TSX subgroups lost ground, with information technology down 0.9%, health-care sliding 0.3%, and utilities off 0.2%.

The four gainers were led upward by gold, up 1.1%, while consumer discretionary and materials each carved out gains of 0.9%.

ON WALLSTREET

The S&P 500 was near flat Thursday after the U.S. House passed a debt ceiling bill in a crucial step to avoid a U.S. default, with the measure now moving it to the Senate.

The Dow Jones Industrials lost 61.76 points to open Thursday at 32,846.41.

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The much-broader S&P 500 nicked up 3.8 points to 4,183.63.

The NASDAQ regained 17.29 points to 12,952.57, as a nearly 6% tumble in Salesforce following its earnings report dragged on the index.

The tech-heavy NASDAQ ended May with a 5.8% gain as enthusiasm around artificial intelligence continued to boost related stocks. But gains were hard to come by outside of tech, with the S&P 500 inching up 0.3% in the month and the Dow falling almost 3.5%.

Beyond the debt ceiling battle, investors are looking ahead to the Federal Reserve’s June 13-14 policy meeting as another possible market catalyst. Philadelphia Fed President Patrick Harker said Wednesday that he’s leaning toward skipping a rate hike at the upcoming gathering. But Friday’s payrolls report could change his mind, he said.

Data from ADP showing private payrolls grew more than economists expected in May, coming in at 278,000 against a 180,000 consensus estimate from Dow Jones. Meanwhile, the number of jobless claims filed last week was smaller than economists forecasted. Both data points show continued resiliency in the labor market, a closely watched area of the economy given concerns that sustained strength could prompt the Fed to once again raise interest rates at its policy meeting later this month.

The Fiscal Responsibility Act passed by a vote of 314-117 with bipartisan support. Senate Majority Leader Chuck Schumer, D-N.Y., said he hopes “we can move the bill quickly here in the Senate and bring it to the president’s desk as soon as possible.”

Concern over a possible U.S. debt default lingered on Wall Street throughout May — which concluded Wednesday. Last month was also marked by a dramatic rally in artificial intelligence-related stocks.

Prices for the 10-year Treasury gained ground, lowering yields to 3.60% from Wednesday’s 3.64%. Treasury prices and yields move in opposite directions.

Oil prices inched upward seven cents to $68.16 U.S. a barrel.

Gold prices acquired $6.20 to $1,988.30 U.S. an ounce.