Baystreet.ca - Equities in Canada’s largest market opened higher on Friday, lifted by energy shares, ahead of U.S. Federal Reserve Chair Jerome Powell's highly anticipated speech later in the day.
The TSX Composite Index recovered 107.73 points to begin the week’s final session at 23,145.20
The Canadian dollar gained back 0.15 cents to 73.65 cents U.S.
In corporate news, the Teamsters union said workers at Canadian National Railway (TSX:CNR) will return to work after the government moved to end the lockout that threatened the economy. Shares in CN triumphed $2.23, or 1.4%, to $158.41.
However, work stoppage at Canadian Pacific Kansas City (TSX:CP) is expected to continue. CP shares grabbed $1.50, or 1.4%, to $110.93.
On the economic slate, retail sales decreased 0.3% to $65.7 billion in June. Sales were down in four of nine subsectors and were led by decreases at motor vehicle and parts dealers.
ON BAYSTREET
The TSX Venture Exchange recovered 4.01 points to 575.28.
All 12 TSX subgroups were up in the first hour, with materials jumping 1.3%, health-care ahead 1%, and industrials ahead 0.9%.
ON WALLSTREET
Stocks rose Friday after Federal Reserve Chair Jerome Powell indicated interest rate cuts were on the horizon.
The Dow Jones Industrial index roared ahead 405.64 points, or 1%, first thing Friday to 41,118.42.
The S&P 500 index regained 66.93 points, or 1.2%, to 5,637.57.
The NASDAQ recovered 305.58 points, or 1.7%, to 17,924.24.
Technology stocks rallied with particular strength as investors grew hopeful that a lower-rate environment would benefit this group. Nvidia (NASDAQ:NVDA) and Tesla (NASDAQ:TSLA) both jumped around 4%, while Advanced Micro Devices (NASDAQ:AMD) popped more than 2%.
The three major averages are heading for a winning week despite some pressure on Thursday from rising Treasury yields. The S&P 500 advanced 1.2% on the week, while the NASDAQ is now up about 1.3%, while the Dow has added 0.9%.
Stocks took a leg up after Powell signaled decreases to interest rates ahead during his speech in Jackson Hole, Wyoming. But Powell did not provide specific information on when or how big any cuts to the borrowing cost would be.
Prices for the 10-year Treasury jumped, lowering yields to 3.81% from Thursday’s 3.87%. Treasury prices and yields move in opposite directions.
Oil prices picked up $1.44 at $74.45 U.S. a barrel.
Gold prices tagged on $34.90 to $2,551.50.