Toronto stocks rose at the market open on Thursday, buoyed by rate-sensitive technology stocks after U.S. inflation data fanned hopes that the Federal Reserve is nearing the end of its rate hike cycle.
The TSX hopped 149.43 points to open Thursday’s session at 20,424.70.
The Canadian dollar gained 0.21 cents to 74.72 cents U.S.
Algonquin Power & Utilities said it was considering a sale of its renewable energy business, while among company earnings, Canadian Tire Corp reported a drop in quarterly revenue. Algonquin stock dropped 31 cents, or 3%, to $10.11.
Manulife Financial reported better-than-expected quarterly profit on Wednesday, while pot-producer Canopy Growth again raised going concern doubts. Shares in Manulife surged 53 cents, or 2.1%, to $26.40, while those for Canopy gave back a penny, or 1.6%, to 60 cents.
Two of Canada's biggest pension funds are exploring options including a sale of Cubico Sustainable Investments that could value the renewable energy firm at about $6 billion or more, including debt.
ON BAYSTREET
The TSX Venture Exchange regained 2.22 points to 605.77.
All but one of the 12 TSX subgroups were positive in the first hour, with consumer staples strengthening 1.3%, information technology soaring 1.2%, and financials, up 0.8%.
The lone laggard proved to be health-care, down 1.1%.
ON WALLSTREET
Stocks rose Thursday after a key inflation reading showed slightly less year-over-year inflation growth than expected.
The Dow Jones Industrials jumped 437.77 points, or 1.3%, to start Thursday at 35,561.13.
The S&P 500 added 54.88 points, or 1.2%, to 4,522.40.
The NASDAQ index popped 205.87 points, or 1.5%, to 13,927.88.
Disney gained 1% after announcing an upcoming price hike for ad-free Disney+ subscriptions. The media giant also reported fiscal third-quarter earnings per share that beat expectations. Wynn Resorts advanced nearly 4% on a better-than-expected report.
More than 90% of S&P 500 companies have reported earnings for the quarter as of Thursday morning. Of those, about four-fifths have beat Wall Street expectations,
July consumer prices gained 3.2% on an annual basis, less than the 3.3% consensus from economists polled by Dow Jones. On a month-to-month basis, inflation increased 0.2%, in-line with estimates. The report also said real average weekly earnings were unchanged last month in another positive sign.
Still, the report had some signs of sticky inflation. Excluding food and energy, the so-called core July CPI reading was up 4.7% on an annual basis, far above the Fed’s 2% target. And headline inflation was above the 3% annual rate in June.
Prices for the 10-year Treasury were unchanged, keeping yields at Wednesday’s 4%.
Oil prices faded 52 cents to $83.88 U.S. a barrel.
Gold prices hiked $2.30 to $1,952.90 U.S. an ounce.
