New York in­dices break records, while TSX falls short of crack­ing high

Cape Breton Post - - CLAS­SI­FIEDS/BUSI­NESS -

Ma­jor New York stock in­dices sur­passed record highs Thurs­day, while the Toronto Stock Ex­change’s main in­dex failed to muster up the roughly 40 points more it needed to do the same.

The Dow Jones in­dus­trial av­er­age ad­vanced 118.06 points to 20,172.40, and the S&P 500 added 13.20 points to 2,307.87. The Nas­daq com­pos­ite mean­while reached its third con­sec­u­tive record-break­ing day, ris­ing 32.73 points to 5,715.18.

The in­dices jumped on com­ments from U.S. Pres­i­dent Don­ald Trump about his long­promised tax re­forms, said Kathryn Del Greco, vice pres­i­dent and in­vest­ment ad­viser with TD Wealth.

Trump re­port­edly said he’ll re­veal a “phe­nom­e­nal’’ tax an­nounce­ment in the next two to three weeks. He made the re­marks while meet­ing with air­line and air­port ex­ec­u­tives.

“That’s put a re­ally pos­i­tive tone into par­tic­u­larly the U.S. mar­ket, which had been wait­ing pa­tiently for news on the tax re­form,’’ said Del Greco.

A sec­ondary boost came from a U.S. La­bor Depart­ment re­port re­leased Thurs­day morn­ing that showed fewer Amer­i­cans are seek­ing un­em­ploy­ment ben­e­fits — a sign the U.S. econ­omy is re­cov­er­ing, she said.

The growth south of the bor­der helped push the S&P/TSX com­pos­ite in­dex higher.

Still, it fell short of its pre­vi­ous all-time high of 15,657.63 points set in Septem­ber 2014 after reach­ing an in­tra­day high ear­lier Thurs­day of 15,635.82 points.

The TSX gained 63.26 points to 15,617.30, with the en­ergy sec­tor driv­ing its growth.

En­ergy stocks gained more than two per cent in worth on av­er­age, with strong earn­ings from Canada’s largest oil and gas com­pany by mar­ket cap­i­tal­iza­tion and a rise in the price of oil. Sun­cor En­ergy (TSX:SU) re­leased its fourth quar­ter re­sults for its 2016 fi­nan­cial year Thurs­day and out­per­formed an­a­lyst ex­pec­ta­tions.

The com­pany said its net earn­ings were $531 mil­lion or 32 cents per share, com­pared to a net loss of $2 bil­lion or $1.38 cents per share in the same three months of 2015.

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