TORONTO — Canada's main stock index closed up for a fifth day in a row, buoyed by strength in information technology and battery metals, while U.S. stocks were mixed on tech earnings and new economic data.
The S&P/TSX composite index closed up 72.35 points at 19,352.11.
In New York, the Dow Jones industrial average was up 194.17 points at 32,033.28. The S&P 500 index was down 23.30 points at 3,807.30, while the Nasdaq composite was down 178.32 points at 10,792.67.
The Canadian market is being lifted by energy, which makes up a large portion of the TSX, while in the U.S. tech earnings are dragging markets down, said Les Stelmach, senior vice-president and portfolio manager at Franklin Templeton Canada.
“In Canada, obviously, energy is bigger,” he said.
The information technology index in Canada is being lifted by one stock in particular, said Stelmach: Shopify, which reported better-than-expected results Thursday. Shares in the company were up 17 per cent Thursday on the news.
Meanwhile, U.S. tech earnings released this week have been largely disappointing, with Google, Microsoft, and Amazon all publishing weak results, said Stelmach.
“And the big story today in the U.S. is Meta, aka Facebook, which has taken it on the chin in a real way,” he said.
Shares in Meta Platforms, Inc. dropped almost 25 per cent Thursday after earnings fell short of estimates.
The Canadian dollar traded for 73.82 cents US,compared with 73.72 cents US on Wednesday.
Stelmach said while some earnings have been trickling in north of the border, he’s waiting for the rest of the energy sector to report.
“We’re just getting into earnings in earnest,” he said.
He will be watching for inflation’s effect on their budget, but also revenues, which are expected to be softer than last quarter but still strong.
The big energy news of the day is Suncor Energy, which will acquire Teck Resources’ stake in the Fort Hills oilsands project, noted Stelmach.
U.S. GDP data released Thursday was better than expected, but Stelmach said to take the numbers with a grain of salt.
“I don't know that I would really hang my hat on one month's print of GDP,” he said. “I think this will be a process, I think it's still prudent to just remain cautious and watch things develop.”
The December crude contract was up US$1.17 at US$89.08 per barrel and the December natural gas contract was down 24.4 cents at US$5.88 per mmBTU.
The December gold contract was down US$3.60 at US$1,665.60 an ounce and the December copper contract was down 2.6 cents at US$3.52 a pound.
This report by The Canadian Press was first published Oct. 27, 2022.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD=X)
The Canadian Press
