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TSX Ends Week with 300+ Gains

Baystreet - Fri May 5, 2023

Equity markets made up Friday for what befell them throughout much of the week, thanks mostly to gains in tech and energy companies, while investors on both sides of the border celebrated mouth-watering jobs figures.

The TSX sprouted wings and flew 303.84 points, or 1.5%, to conclude Friday and the week at 20,542.03. On the week, however, the index fell 94.5 points, or about 0.5%.

The Canadian dollar gained 0.27 cents to 74.21 cents U.S.

Tech shares climbed on the back of Open Text Corp., which surged $5.98, or 12.1%, to $55.41, while Bitfarms bounced 11 cents, or 7.5%, to $1.57.

Energy stocks also had a banner day, with Pason Systems, jumping 98 cents, or 8.7%, to $12.20, while Arc Resources grabbed $1.20, or 7.5%, to $17.25.

Cannabis concerns also claimed their share of fame, with Tilray taking on 29 cents, or 8.5%, to $3.70, while Canopy Growth increased 11 cents, or 6.6%, to $1.79.

Gold stocks moved backward, though, with Wesdome Gold stumbling 24 cents, or 2.6%, to $9.06, while NovaGold dropped 18 cents, or 2.3%, to $7.51.

On the economic beat, Statistics Canada reported the economy created 41,000 jobs in April, almost all of them part-time work. The jobless rate stayed put.

ON BAYSTREET

The TSX Venture Exchange strengthened 8.1 points, or 1.3%, to conclude Friday at 615.40, gaining just more than two points on the week, or 0.3%.

All but one of the 12 TSX subgroups remained positive till the end of the session, led by information technology, clicking 3.6%, energy, storming higher 3.4%and health-care, up 3%.

Only gold missed the party, waning 1.9%.

ON WALLSTREET

Stocks popped on Friday as regional bank shares climbed off their lows and market-darling Apple jumped after posting better-than-expected quarterly earnings.

The Dow Jones Industrials leaped 546.64 points, or 1.7%, to close at 33,674,38.

The S&P 500 grabbed 75.03 points, or 1.9%, to 4,136.25.

The NASDAQ Composite popped 269.01 points, or 2.3%, to 12,235.41.

Despite Friday’s rally, the Dow and the S&P 500 logged their worst week since March. The 30-stock Dow lost 1.24%, while the S&P 500 dropped 0.8%. The NASDAQ eked out a small weekly gain of 0.07%.

The rebound for regional bank stocks was boosted by a note from JPMorgan, which upgraded Western Alliance, Zions Bancorp and Comerica to overweight.

PacWest — which is down sharply this week on news it’s considering strategic options that include a sale — popped 81.7%. Western Alliance also jumped 49.2%.

Stocks rose even as April’s jobs numbers came in hotter than expected. The U.S. economy added 253,000 jobs in April, while Wall Street had expected 180,000 new jobs, according to the Bureau of Labor Statistics.

Shares of regional banking companies have been under pressure this week, as traders fear other institutions could suffer the same fate as Silicon Valley Bank and Signature Bank. Both banks collapsed in March.

Prices for the 10-year Treasury sagged, raising yields to 3.44% from Thursday’s 3.36%. Treasury prices and yields move in opposite directions.

Oil prices took on $2.76 to $71.32 U.S. a barrel.

Gold prices dipped $30.80 to $2,024.90 U.S. an ounce.


Provided Content: Content provided by Baystreet. The Globe and Mail was not involved, and material was not reviewed prior to publication.

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