Broad-based rally lifts TSX, loonie
TORONTO — Strong U.S. corporate earnings helped push North American stock indexes higher Thursday, as markets bounced back from modest declines a day earlier.
The S&P/TSX composite index was up 56.89 points to 15,935.37, with energy shares one of the few decliners amid a continuing drop in the price of oil.
The January crude contract was down 17 cents at US$55.35 per barrel — and down US$2.00 from its previous high of US$57.35 on Nov. 6.
In New York, the Dow Jones industrial average climbed 187.08 points to 23,458.36. The S&P 500 index advanced 21.02 points to 2,585.64 and the Nasdaq composite index added 87.08 points to a record high of 6,793.29.
Strong quarterly earnings from Walmart Stores Inc. and Cisco Systems were the prime drivers of the Dow at the closing of markets Thursday.
Shares of Walmart jumped 10.90 per cent after the retail giant reported strong third-quarter results and raised its annual profit outlook. The company said online sales continued to surge and food sales were strong as well. Its shares rose US$9.79 to US$99.62.
Meanwhile, Cisco Systems leapt 5.19 per cent after the internet gear maker reported a bigger profit than analysts expected and said revenue should grow in its next quarter after two years of declines. The stock added US$1.77 to US$35.88.
“It’s a good day for investors,” said Allan Small, a senior investment adviser at Holliswealth. “Overall it’s been a broad-based rally out of the U.S. and a little spillage over to the Toronto markets, with the exception of energy.”
“Walmart was a pleasant surprise, I don’t think anyone was expecting that good of a quarter. And then you’ve got Cisco, they impressed quite a bit.”
U.S. stock indexes likely also got a bump after Republicans rammed a near $1.5 trillion package overhauling corporate and personal taxes through the House on Thursday, Small added. The move edges President Donald Trump and the GOP toward their first big legislative triumph in a year in which they and their voters expected much more.
The Canadian dollar was trading at 78.46 cents US, up 0.17 of a U.S. cent.
The December natural gas contract dropped three cents at US$3.05 per mmBTU. The December gold contract was up 50 cents to US$1,278.20 an ounce and the December copper contract was unchanged at US$3.05 a pound.