Equities in Canada’s biggest market went skyward on Friday and was on track for its fourth consecutive weekly gain, as signs of potential easing in U.S.-China trade tensions and a stronger-than-expected U.S. jobs report boosted investor sentiment.
The TSX Composite Index pushed higher 235.96 points, or 1%, to end the day and the week at 25,031.51. On the week, the index added 321 points, or 1.3%.
The Canadian dollar regained 0.20 cents at 72.41 cents U.S.
Beijing on Friday said it was “evaluating” an offer from Washington to hold talks over U.S. President Donald Trump’s 145% tariffs on China, signaling that trade tensions between the world’s two largest economies were easing.
But China added that Washington needed to show “sincerity” in negotiations and should be prepared to cancel its unilateral tariffs.
Trump’s wavering tariffs have kept investors on the edge over the last few months, as they upended supply chains and forced some companies to pull earnings forecasts.
In corporate news, Magna International missed first-quarter profit estimates and said that it plans to implement cost-cutting measures to cushion the hit from Trump’s tariffs. Magna shares plunged $2.66, or 5.5%, to $45.84.
Elsewhere, Bombardier advanced $3.93, or 4.8% to $86.47, after at least three brokerages raised target price on the stock after the business jet manufacturer reported higher first-quarter revenue on Thursday.
Industrials prove the engine of growth Friday, as NFI Group claimed 63 cents, or 5.3%, to $12.50, while Canadian National Railways gained $7.60, or 5.7%, to $139.98.
In tech issues, Celestica proved the leader, tacking on $6.43, or 5.2%, to $129.94, while Computer Modeling Group moved up 23 cents, or 2.9%, to $8.11.
In financials, IA Financial Group hiked $4.90, or 3.3%, to $137.02, while Brookfield Asset Management gained $1.89, or 2.6%, to $75.61.
Gold sank, with Alamos Gold down $1.50, or 4.2%, to $34.12, while Oceanagold docked 12 cents, or 2.5%, to $4.63.
Pan American Silver shed 79 cents, or 2.4%, to $32.47, while G Mining Ventures dropped 37 cents, or 1.9%, to $18.75.
Telecoms also suffered, as TELUS unloaded 38 cents, or 1.8%, to $20.72, while Quebecor ditched 28 cents to $37.52.
ON BAYSTREET
The TSX Venture Exchange regained 10.25 points, or 1.6%, to 656.40. On the week, the gain was 2.58 points, or 0.4%.
Eight of the 12 subgroups were higher on the day, with industrials surging 1.9%, information technology climbing 1.3%, and financials richer 1.1%.
The four laggards were weighed most by gold and telecoms, each off 0.8%, and materials, down 0.6%.
ON WALLSTREET
Stocks rose on Friday as Wall Street digested a better-than-expected non-farm payrolls report for April, which eased recession fears and lifted the S&P 500 for its longest winning streak in just over two decades.
The Dow Jones Industrials popped 564.47 points, or 1.4%, to 41,317.43.
The much broader index rose 82.53 points, or 1.5%, to 5,686.67, for its longest winning streak since November 2004.
The NASDAQ Composite soared 266.99 points, or 1.5%, to 17,977.73.
With Friday’s gains, the S&P 500 has now recovered its losses since April 2, when President Donald Trump announced his “reciprocal” tariffs. This comes a day after the tech-heavy NASDAQ accomplished the same feat.
The Dow is on track for a 2.5% advance, while the NASDAQ is up 2.7% week to date.
The Street was also mulling over earnings reports from two “Magnificent Seven” members. Apple slid 3.7% after posting fiscal second-quarter revenue from its services division that fell short against analyst estimates.
Additionally, the iPhone maker said it expects to add $900 million in costs in the current quarter due to tariffs. Amazon shares, meanwhile, were marginally lower after the company issued light guidance, highlighting “tariffs and trade policies” as factors.
Payrolls grew by 177,000 in April, above the 133,000 that economists polled by Dow Jones had anticipated. That figure is still down sharply from the 228,000 added in March but much better than feared after recession worries grew last month. The unemployment rate stood at 4.2%, in line with expectations.
Investors were already upbeat prior to the strong jobs report after China said that it is evaluating the possibility of starting trade negotiations with the U.S.
Still, Chinese authorities reaffirmed their belief that the U.S. should remove all unilateral tariffs, saying in a statement that “if the U.S. wants to talk, it should show its sincerity and be prepared to correct its wrong practices and cancel the unilateral tariffs.”
Prices for the 10-year Treasury fell sharply, raising yields to 4.31% from Thursday’s 4.21%. Treasury prices and yields move in opposite directions
Oil prices sagged 68 cents to $58.56 U.S. a barrel.
Prices for gold jumped $18.00 to $3,240.20 U.S.