Canada’s TSX climbed to a record high on Monday as investors moved away from defensive stocks in favour of tech names.
It was much the same story in the U.S., with key tech and communications companies boosting the S&P 500 and Nasdaq. By Monday’s close, the TSX added 57 points, while the S&P 500 and Nasdaq rose 15 and 124 points, respectively. The Dow ended the day essentially flat.
Another round of strong performances from tech and financials led the TSX to a record close on Tuesday, topping the 21,000 mark for the first time. In the U.S., investor sentiment continued to strengthen, thanks in large part to a strong start to corporate earning season, despite ongoing supply-chain disruptions and inflation worries. With about 10% of S&P 500 companies reporting by Tuesday, roughly 80% had beaten profit forecasts, according to FactSet. By Tuesday’s close, all four North American equity markets had posted solid gains. Meanwhile, the loonie on Tuesday hit its highest level in more than three months against the greenback as oil prices rose and the U.S. dollar slipped.
In Canadian inflation news, the consumer price index rose 4.4% in September from a year earlier, up slightly from 4.1% in August. Rising gas prices and housing costs continue to fuel much of the surge. It was the sixth consecutive month that inflation had overshot the BoC’s target range of 1% to 3%. In Canada, the TSX climbed 101 points, lifted by industrials and resource names. Meanwhile, the Dow and S&P 500 registered minor gains, while the Nasdaq inched down 7 points.
On Thursday, the U.S. Labor Department reported that initial jobless claims for the prior week fell slightly, down 6,000 to 290,000, the lowest level since the pandemic struck in March 2020. By Thursday’s close, the TSX, Nasdaq and S&P 500 recorded modest gains, while the Dow ended flat.
source https://richarddri.ca/investor-concerns-ease-as-strong-corporate-earnings-lift-equity-markets/
Dri Financial Group 