“Dance Like Nobody’s Watching…. And Some Busybody Will Phone The Police” – Terry Broaders
TSX Hits New Record High As Oil, Jobs Rise
The Toronto Stock Exchange’s main index and Wall Street indices all soared to record highs Friday, bolstered by news that U.S. President Donald Trump will soon reveal his tax policy. On Bay Street, the S&P/TSX composite index advanced 111.82 points to 15,729.12, shattering a previous record close of 15,657.63 set on Sept. 3, 2014. The index also set a new intraday record high, reaching 15,736.64 points earlier in the day. That surpassed the old intraday record of 15,685.13, also set on Sept. 3, 2014. The growth was fuelled by the three largest sectors of the market — materials, financials and energy.
Energy stocks, which gained nearly 1% in worth on average, were buoyed by rising oil prices and reports that OPEC members have been about 90% compliant with their commitments to cut crude production thus far, Small said. The March crude contract rose US86¢ to US$53.86 per barrel. Meanwhile, a long-awaited promise from Trump on Thursday that he’ll be revealing the business-friendly tax plan the markets have been waiting spurred on the financials sector where stocks rose on average by nearly 0.5%. The April gold contract shed US90¢ to US$1,235.90 an ounce, while March copper contracts rose about US11.5¢ to around US$2.77 a pound. Meanwhile, the loonie rose 0.32 of a U.S. cent to 76.42¢ US and elsewhere in commodities.
South of the border, Wall Street renewed its so-called Trump bump for another day on the teased tax policy announcement. The Dow Jones industrial average gained 96.97 points to 20,269.37 and the S&P 500 advanced 8.23 points to 2,316.10 for a second straight record-setting day. The Nasdaq composite index meanwhile rose 18.95 points to 5,734.13 for its fourth consecutive day of all-time highs.
Canada’s Unemployment Rate Dips To 6.8%
Canada’s labour market unexpectedly added 48,300 jobs last month, thanks to surges in part-time and private-sector work. Statistics Canada’s employment survey for January shows an increase of 32,400 part-time positions and a gain of 15,800 jobs in the more-desirable category of full-time work. The report also found that the number of private-sector jobs rose 32,400 between December and January, compared with an increase of 7,700 public-sector positions. The unemployment rate fell to 6.8% from 6.9% in December.
“The surprisingly strong trend in employment towards the end of 2016 kept on rolling into the New Year; the 48K rise in jobs was well above the -10,000 expected by the consensus, and leaves the 6-month average at a hot 40,000,” says Andrew Grantham, senior economist at CIBC Capital Markets, in a research note. He predicts “the continued strength” in the labour market will make it harder for the Bank of Canada to sell markets on the idea that a rate cut is still on the table.
Statistics Canada says the vast majority of the new jobs–42,600 positions–were created in the services sector. A consensus of economists had projected the job numbers to stay unchanged last month and for the unemployment rate to hold at 6.9%, according to Thomson Reuters. The country’s job market has seen gains in five out of the last six monthly reports.
Here are the jobless rates last month by province and percentage (previous month in brackets):
Newfoundland and Labrador, 13.8 (15.1)
Prince Edward Island, 9.8 (10.5)
Nova Scotia, 7.7 (8.3)
New Brunswick, 8.9 (9.3)
Quebec, 6.2 (6.5)
Ontario, 6.4 (6.4)
Manitoba, 6.1 (6.3)
Saskatchewan, 6.4 (6.6)
Alberta, 8.8 (8.5)
British Columbia, 5.6 (5.8)
The TSX closed at 15729, up 253 points or 1.63% over the past week. YTD the TSX is up 2.96%.
The DOW closed at 20269, up 197 points or 0.98% over the past week.YTD the DOW is up 2.56%.
The S&P closed at 2316, up 19 points or 0.83% over the past week.YTD the S&P is up 3.44%.
The Nasdaq closed at 5734, up 67 points or 1.18% over the past week.YTD the Nasdaq is up 6.52%.
Gold closed at 1235, up 28.00 points or 1.06% over the past week.YTD gold is up 8.52%.
Oil closed at 53.77, down -0.08 points or -0.15% over the past week.YTD oil is up 2.97%.
The USD/CAD closed at 0.764, down -0.0030 points or -0.39% over the past week.YTD the USD/CAD is up 2.98%.
The MSCI closed at 1808, up 13 points or 0.72% over the past week. YTD the MSCI is up 3.14%.
The Euro Stoxx 50 closed at 3271, down -2 points or -0.06% over the past week.YTD the Euro Stoxx 50 is down -0.61%.
The FTSE closed at 7259, up 71 points or 0.99% over the past week.YTD the FTSE is up 1.62%.
The CAC closed at 4828, up 3 points or 0.06% over the past week.YTD the CAC is down -0.70%.
DAX closed at 11667, up 15.00 points or 0.13% over the past week.YTD DAX is up 1.62%.
Nikkei closed at 19379, up 461.00 points or 2.44% over the past week.YTD Nikkei is up 1.39%.
The Shanghai closed at 3197, up 57.0000 points or 1.82% over the past week.YTD the Shanghai is up 3.00%.
Sources: Bloomberg; Investment Executive; advisor.ca