TSX cloSeS higher on poSiTive U.S. daTa
TORONTO • The Toronto stock market closed slightly higher Thursday amid reassuring economic data from the United States.
The S&P/TSX composite index rose 12.29 points to 13,362.06, held back by declines in base metals and utilities stocks.
Sharply lower oil prices helped push the Canadian dollar down US0.59¢ to US94.38¢.
U.S. indexes were higher as the Dow Jones industrial average climbed 24.53 points to 16,097.33, Nasdaq gained 27 points to 4,044.75, while the S&P 500 index edged up 4.48 points to 1,807.23.
“Today’s economic news was generally favourable,” said Terry Sandven, chief equity strategist for U.S. Bank Wealth Management. “In the absence of bad news, the path of least resistance for equities is up.”
As traders get set to wind down for the U.S. Thanksgiving holiday on Thursday when U.S. markets will be shuttered, they took in data showing U.S. jobless insurance claims, which are a proxy for layoffs, fell by 10,000 last week to 316,000. Economists had expected a slight rise.
Orders for U.S. durable goods fell 2% in October, which was in line with expectations. Excluding transportation, orders dipped 0.1%. A key gauge of the manufacturing sector in the U.S. Midwest showed slower expansion. The Chicago purchasing managers index fell to a higher-than-expected 63 in November from 65.9 in October.
Meanwhile, the U.S. Conference Board said its leading economic indicator rose 0.2% in October. That data gives an indication on where the U.S. economy is heading over the next six months.
And the University of Michigan released its latest reading on U.S. consumer sentiment. It rose to 75.1 in November from 73.2 in October, better than the 73 reading that had been expected.
The TSX gold sector led advances, up 1.2% as traders bought into a segment that is down almost 50% year to date as gold prices have also fallen amid speculation that the U.S. Federal Reserve is set to taper its monthly US$85-billion of bond purchases, which have kept rates low and supported a stock market rally. Also, inflation is very low in many parts of the world.
“It’s only going to go down for so long and all of a sudden, you have to think that it’s time to turn around and move it up,” said Fred Ketchen, manager of equity trading at ScotiaMcLeod.
December bullion shed early gains and fell US$3.60 to US$1,237.80 an ounce.
The telecommunications sector was ahead 0.7% as Rogers Communications Inc. was up 96¢, or 2%, to $47.19 a day after reaching a 12-year, $5.2-billion agreement with the National Hockey League that gives the company the league’s broadcast and multimedia rights in Canada.
Gains in railway stocks also lifted the TSX as Canadian National Railways Co. ran up $1.17 to $118.61 while financials were also positive.
The energy sector lost 0.34% as the January crude contract fell US$1.38 to US$92.30 a barrel. Supply data from the U.S. Energy Department for last week showed oil supplies rose about three million barrels, versus a decline of 1.5 million barrels that had been expected.