TSX Climbs at Open


Equities in Canada opened higher on Thursday as investors cheered a slowdown in U.S. economic growth for the first quarter, while the financials sector led gains on support from upbeat second-quarter results from Royal Bank of Canada.

The S&P/TSX Composite Index turned skyward 172.66 points to begin Thursday to 22,070.64.

The Canadian dollar recovered 0.19 cents at 73.09 cents U.S.

In corporate news, Royal Bank of Canada reported a rise in second-quarter profit as the lender’s personal and commercial banking unit benefited from higher interest income. RBC shares vaulted $5.14, or 3.7%, to $146.10.

Brookfield, together with Brookfield Renewable Partners and Singapore’s Temasek Holdings, has entered into exclusive discussions to buy a majority stake in French renewable power producer Neoen valuing it at around $6.6 billion. Brookfield Corporation shares grabbed $1.01, or 1.8%, to $58.62.

In matters economic, payroll numbers came out for March, and showed the number of employees receiving pay and benefits from their employer increased by 51,400 (+0.3%) in March following an increase of 14,600 (+0.1%) in February. On a year-over-year basis, payroll employment was up by 232,100 (+1.3%) in March.

ON BAYSTREET

The TSX Venture Exchange recaptured 2.33 points to begin Thursday at 611.35.

All but one of the 12 subgroups were positive, with financials stronger 1.4%, while gold climbed 1.2%, and utilities grabbed 0.9%.

Only information technology missed breakeven, and only 0.9% at that.

ON WALLSTREET

Stocks fell Thursday, as shares of Salesforce slid on a quarterly revenue miss and soft guidance, and traders looked ahead to the release of key U.S. inflation data.

The Dow Jones Industrial Average lost 377.11 points, or 1%, to begin Thursday’s session at 38,064.43.

The S&P 500 slid 17.89 points to 5,249.06.

The NASDAQ lost 67.47 points to 16,853.11.

Salesforce plunged more than 18% after missing revenue expectations for the fiscal first quarter. The company’s earnings and revenue outlook for the second quarter also fell short of the Street’s estimates. On the other hand, Foot Locker rallied more than 28% on stronger-than-expected earnings per share.

Thursday’s moves come amid a tough, holiday-shortened trading week. The S&P 500 has slipped around 1%, while the NASDAQ Composite has shed 0.4% — putting both on track to snap five-week winning streaks. The Dow has tumbled more than 2%, on pace for its second straight losing week.

Investors are looking toward Friday’s release of the personal consumption expenditures price index report for April, which is the Federal Reserve’s preferred inflation gauge.

Prices for the 10-year Treasury strengthened, lowering yields to 4.57% from Wednesday’s 4.74%. Treasury prices and yields move in opposite directions.

Oil prices ditched 28 cents to $78.95 U.S. a barrel.

Gold prices moved higher $4.90 to $2,346.10.



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