Canada’s main stock index opened higher on Friday and was set to finish the week on a strong note boosted by gains in the energy sector, while hopes that the U.S. central bank is likely forgo more interest rate hikes further aided gains.
At 9:31 a.m. ET, the Toronto Stock Exchange’s S&P/TSX composite index was up 84.13 points, or 0.42%, at 20,137.2.
The S&P 500 and the Dow opened higher on Friday as Treasury yields extended declines from the previous session after recent weak economic data supported bets of a dovish pivot by the Federal Reserve next year.
The Dow Jones Industrial Average rose 19.35 points, or 0.06%, at the open to 34,964.82.
The S&P 500 opened higher by 1.31 points, or 0.03%, at 4,509.55, while the Nasdaq Composite dropped 12.24 points, or 0.09%, to 14,101.44 at the opening bell.
The yield on the 10-year Treasury note dropped further to a two-month low on Friday and was last at 4.414%.
“Momentum buying is increasing and it’s increasing because bad news right now is good news for the stock market,” said Peter Cardillo, chief market economist at Spartan Capital Securities.
“We had a slew of macro indicators that were weak and that kept yields from reversing and the downward trend seems to be in place. That’s what’s propelling stocks here.”
Wall Street’s three main indexes were poised to gain about 2% for the week, also on course for their third straight week of gains, as multiple data, including the consumer and producer prices index, pointed towards easing inflationary pressures.
While money markets have fully priced in the Fed will hold rates steady at the current 5.25%-5.50% level in its December meeting, they also see a near 69% chance of at least a 25 basis point rate cut in May 2024, according to the CME Group’s FedWatch tool.
Investors will now await comments due later in the day from Fed officials, including policy voting member Chicago Fed President Austan Goolsbee, for any cues on the monetary policy trajectory.
Shares of The Gap jumped almost than 19% in early trading after the fashion retailer breezed past Wall Street profit forecasts even as sales lagged from a year ago.
It’s been a busy week for retail earnings, with Target, Home Depot and Macy’s all reporting better-than-expected profits for the most recent quarter, though sales have lagged over the same period last year.
A report from the Commerce Department this week echoed those results, as Americans cut back on spending in October, ending six straight months of gains and pushing retail sales down 0.1%.
Wall Street’s stocks drifted to a mixed finish Thursday as market momentum slowed following the sizzling rally of the first half of November.
The S&P 500 edged up by 0.1% and was comfortably on track for a third straight winning week. The Dow industrials slipped 0.1% and the Nasdaq composite gained 0.1%.
November is on track to be the S&P 500′s best month in a year on rising hopes for a “Goldilocks” economy that’s just right for markets.
Several reports indicated the U.S. economy is slowing. Slightly more workers applied for unemployment benefits last week. The number is low relative to history, but a softening in the job market could prevent strong raises in wages that the Fed fears could help keep inflation high.
In Europe at midday, Germany’s DAX and the CAC 40 in Paris each were 0.9% higher, while Britain’s FTSE 100 surged 0.7%.
British retail sales volumes saw an unexpected decline in October, falling 0.3% from the month before according to data released Friday.
In Asian trading, Hong Kong’s Hang Seng sank 2.1%, to 17,454.19, dragged lower by a 9.8% slump in shares of Chinese e-commerce giant Alibaba following its cancellation of a plan to spin off its cloud computing unit. The company cited uncertainties due to U.S. chip restrictions. Alibaba shares dropped as much as 10% in New York on Thursday.
The Shanghai Composite index edged 0.1% higher to 3,054.37.
Tokyo’s Nikkei 225 index gained 0.5% to 33,585.20 after Bank of Japan Gov. Kazuo Ueda indicated, in comments to parliament, that the central bank has no immediate plans to change its ultra-lax monetary policy, which has kept the benchmark interest rate at minus 0.1% for years.
The gap between Japan’s negative interest rate and the U.S. benchmark rate of over 5.25% has pushed the value of the U.S. dollar much higher against the Japanese yen, complicating planning for corporations and raising costs for imports. But Ueda said the weak yen has both positives and negatives.
On Friday, the U.S. dollar was trading at 149.23 Japanese yen, down from 150.73 yen. The euro rose to $1.0870 from $1.0853.
In South Korea, the Kospi fell 0.7% to 2,469.85. Australia’s S&P/ASX 200 slipped 0.1% to 7,049.40. Taiwan’s Taiex gained 0.2% and the Sensex in Mumbai dropped 0.2%.
The yield on the 10-year Treasury fell to 4.41% early Friday from 4.44% Thursday. Just last month, it was above 5% at its highest level since 2007 and raising worries on Wall Street as it undercut prices for stocks and other investments. The yield on the 2-year Treasury also edged down, to 4.83% from 4.85% late Thursday.
A barrel of benchmark U.S. crude for delivery in December was up 95 cents at $74.04. On Thursday, it tumbled $3.76 to settle at $72.90. Brent crude, the international standard, gained $1.06 to $78.48 per barrel.
Reuters and The Associated Press
https://news.google.com/rss/articles/CBMinQFodHRwczovL3d3dy50aGVnbG9iZWFuZG1haWwuY29tL2ludmVzdGluZy9tYXJrZXRzL2luc2lkZS10aGUtbWFya2V0L21hcmtldC1uZXdzL2FydGljbGUtcHJlbWFya2V0LXN0b2Nrcy1ib25kcy1pbi1ldXBob3JpYy1tb29kLW9pbC1zdWJkdWVkLWFmdGVyLXNoYXJwLWZhbGwv0gEA?oc=5
2023-11-17 10:40:12Z
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