Oils at US60 TSX is at an alltime high and Big Tech

TORONTO — Canada’s main stock index rose above its record closing high in late morning trading, boosted by gains in the energy sector.The S&P/TSX composite index was up 41.09 points at 15,932.72, topping its record close set on Feb. 21, but still short of its intra-day record set that same day.The Canadian dollar was trading at 77.57 cents US, down from an average price of 77.94 cents US on Thursday.Gains in technology stocks powered by strong earnings from Microsoft, Amazon and Alphabet lifted the Nasdaq and the S&P on Friday, but losses in Chevron and Merck kept the Dow in the red.Microsoft advanced 6.20 per cent after the world’s largest software company reported further gains from its cloud computing services. Amazon jumped 8.26 per cent and Google-parent Alphabet gained 4.26 per cent after results.End-of-year portfolio playbook: Five tricks you can learn from professional fund managersWhy you’re happy if you own Amazon.com and Alphabet todayThe gains drove the S&P technology index up about 2 per cent. The sector has gained about 30 per cent this year, double the gains in the broader S&P index.“Earnings is driving the positive sentiment at the open,” said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida. “Certainly a lot of enthusiasm for tech stocks that have reported.”As the third-quarter earnings season nears the halfway mark, 74 per cent of the S&P companies topped expectations as of Thursday, above the 72 per cent beat rate for the past four quarters.Adding to the positive sentiment was a data showed the U.S. economy unexpectedly maintained a brisk pace of growth in the third-quarter, despite a hurricane-led drop in consumer spending and construction activities.The Commerce Department said GDP increased at a 3.0 per cent annual rate in the July-September period. Economists polled by Reuters had forecast a 2.5 per cent growth.Energy stocks weighed on the S&P and the Dow. Chevron dipped 3.8 per cent and Exxon fell 1.6 per cent after reporting results. Merck slipped 3.5 per cent after the company reported a fall in revenue due to a cyber attack and loss of market share for many of its older drugs.Mattel plunged about 17 per cent after the toymaker said it would miss its full-year revenue forecast and stop dividend from the fourth quarter.Expedia was slumped 20 per cent after the online travel services company’s profit missed Wall Street’s consensus forecast. Advancing issues outnumbered decliners on the NYSE by 1,217 to 1,180. On the Nasdaq, 1,247 issues rose and 952 fell.Oil prices rose more 1 per cent on Friday on support among the world’s top producers for extending a deal to cut output and as the dollar retreated from three-month peaks.Brent rose 59 cents to US$58.89 a barrel by 10:51 a.m. ET (1451 GMT), after rising to a session high of US$60.08, the highest since July 2015 and more than 35 per cent above its 2017 lows touched in June.U.S. light crude oil was up 78 cents, or 1.48 per cent at US$53.42 after rising to a session high of US$53.52 a barrel. U.S. crude prices have been capped by rising U.S. production.The December gold contract was up $1.30 to US$1,270.90 an ounce and the December copper contract was down one cent to US$3.17 a pound.The Canadian Press with files from Thomson Reuters 2017

Leave a Reply

Your email address will not be published. Required fields are marked *