Rally Continues in Toronto

Air Canada in Spotlight

Canada's main stock index rose on Thursday, as a rebound in commodity prices aided oil and materials stocks, although worries about aggressive central bank actions to tame inflation weighed on the global sentiment.

The TSX added 79.6 points to move into lunch hour Thursday at 20,261.04.

The Canadian dollar was flat at 77.40 cents U.S.

Canadian stocks have rallied over 11% since hitting the year's lowest level in mid-July on the back of upbeat earnings and signs of cooling inflation in the United States. However, analysts question if the recovery can continue as recession fears persist.

Among single stocks, Air Canada slipped 12 cents to $19.23, after the airline said it planned to operate flights at 79% of its pre-pandemic capacity this summer.

On the economic front, Statistics Canada said its Industrial Product Price Index declined 2.1% month over month in July and increased 11.9% year over year, while its raw materials price index fell 7.4% month over month in July and was 19.1% higher compared with July 2021.

ON BAYSTREET

The TSX Venture Exchange gained 2.2 points to 662.28.

Eight of the 12 TSX subgroups were lower midday, as health-care slid 2.3%, information technology dipped 0.9%, and communications fell 0.4%.

The four gainers were led by energy, up 2.2%, materials, better by 1.1%, and gold, brightening 0.6%.

ON WALLSTREET

The Dow Industrial Average slipped on Thursday as investors struggled to regain their footing a day after the index snapped a five-day winning streak and a recent market rally appeared to simmer.

The 30-stock index came off its lows of the morning, but remained negative 15.29 points to observe noon hour EDT Thursday at 33,965.03.

The S&P 500 recovered 11.35 points to 4,285.39.

The NASDAQ Composite regained 50.71 points to 12,988.68.

Retail earnings continued on Thursday with reports from Kohl’s, Bath & Body Works and BJ’s Wholesale. The results offered insight into the health of the consumer.

Kohl’s shares slid 8% after the company cut its guidance while BJ’s Wholesale jumped after topping estimates.

Initial jobless data released Thursday also provided clues into the state of the job market, with claims dropping to 250,000 for the week ended Aug. 13.

Treasury prices jumped, weighing yields to 2.86% from Wednesday’s 2.89%. Treasury prices and yields move in opposite direction.

Oil prices hiked $2.09 to $90.20 U.S. a barrel.

Gold prices doffed one dollar to $1,775.70 U.S. an ounce.