TSX Hopes to Break out of Slump Friday
Anaergia, Silvercorp in Focus
Canada's main stock index opened higher on Friday after three straight sessions of losses, as commodity prices ticked higher, while investors were hopeful of a deal concerning the U.S. debt limit.
The TSX gained 118.15 points to begin Friday at 19,892.23.
The Canadian dollar nicked higher 0.14 cents to 73.42 cents U.S.
Nippon Steel Corp said it was still in talks with Teck Resources as Japan's top steelmaker remained eager to take a stake in Teck's high-grade coking coal asset, despite Glencore's bid for the miner. Shares in Teck jumped 64 cents, or 1.3%, to $51.77.
Canadian Western Bank said it no longer expected to meet its annual pre-tax, pre-provision income and was targeting lower annual growth than it had previously expected. Western Bank shares dipped $1.26, or 5.2%, to $23.16.
Waste treatment firm Anaergia said that one of its units, Rialto Bioenergy Facility initiated restructuring proceedings, which could have a positive impact on its 2023 cash flows. Anaergia shares docked four cents, or 4.7%, to 81 cents.
Silver miner Silvercorp Metals missed analyst expectations on quarterly earnings and sales. Silvercorp dived 27 cents, or 6.1%, to $4.16.
The TSX Venture Exchange recovered three points to 605.64.
All but one of the TSX subgroups were higher in the first hour, with information technology climbing 1.2%, materials and consumer discretionary stocks up 0.8% each.
Only health-care was negative, fading 3.8%.
Stocks rose Friday as optimism around a potential U.S. debt ceiling deal increased.
The Dow Jones Industrials leaped 350.79 points, or 1.1%, mid-morning Friday to 33,115.44.
The S&P 500 gained 46.18 points, or 1.1%, to 4,197.46.
The NASDAQ popped 196.6 points, or 1.6%, to 12,894.69.
Debt ceiling negotiations weighed on market sentiment this week. The S&P 500 entered Friday's session down about 1% week to date, while the Dow lost nearly 2% in that time. The NASDAQ was higher by 0.3%.
House Speaker Kevin McCarthy left the Capitol Thursday night saying a deal had not been reached yet. However, sources told news outlets that the White House and McCarthy are close to reaching an agreement that would raise the U.S. debt ceiling for two years.
Treasury Secretary Janet Yellen has warned that the U.S. could default on its debt as soon as June 1 if the debt ceiling is not raised.
The corporate earnings season is drawing to a close, but a handful of stocks were moving in response to their reports after the bell. Retailer Gap captured more than 12%, and semiconductor stock Marvell Technology rose more than 22.7%, while Ulta Beauty tumbled 10%.
New data out Friday morning showed inflation rose more than expected in April. The personal consumption expenditures index, the Federal Reserve's preferred gauge of price pressures, increased 0.4% last month and 4.7% from a year earlier.
Prices for the 10-year Treasury slumped a bit, raising yields to 3.83% from Thursday's 3.82%. Treasury prices and yields move in opposite directions.
Oil prices recovered 88 cents to $72.71 U.S. a barrel.
Gold prices surged $5.90 to $1,949.60 U.S. an ounce.
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