TORONTO — Energy and technology lifted Canada’s main stock index mid-week, while U.S. stock markets staged a late rally on the eve of that country’s Thanksgiving holiday due to positive economic data including jobless claims hitting a 52-year low.
“After a difficult start to the day, equity markets staged a fairly healthy rebound,” said Candice Bangsund, portfolio manager for Fiera Capital.
“The catalyst for the rebound today was largely a result of the U.S. economic data that revealed that the economy remains on solid ground.”
Initial jobless claims fell to 199,000 last week in the U.S., the lowest level since 1969, while consumer spending data strengthened despite a sharp acceleration in inflationary pressures.
Consumer prices rose 5% compared with the same period last year, the fastest 12-month gain since the same stretch ending in November 1990.
The core inflation number, which the U.S. Federal Reserve watches closely, accelerated 4.1 per cent in October from the prior year, in line with forecasts.
“I think the data just underscores the underlying strength in the economy and the fact that stronger inflationary pressures have not yet cut into the economy or the outlook for the U.S. economy,” she said.
While retail sales are expected to be strong this holiday season, large retailer Gap saw its shares plunge 24.1%, while Nordstrom’s fell 29% after reporting very weak quarterly results amid supply chain problems.
The S&P/TSX composite index closed up 94.66 points to 21,548.43.
In New York, the Dow Jones industrial average rebounded in late trading and was down just 9.42 points at 35,804.38. The S&P 500 index was up 10.76 points at 4,701.46, while the Nasdaq composite was up 70.09 points at 15,845.23.
Trading volumes were thin late in the day ahead of the Thanksgiving holiday. U.S. markets will be closed on Thursday and shut early on Friday.
The Canadian dollar traded for 78.88 cents US compared with 78.70 cents US on Tuesday.
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