Wall and Bay streets closed sharply higher on Monday, fueled by surging tech stocks as investors looked forward to a week dominated by earnings, with nearly a fifth of S&P 500 companies due to announce quarterly results. By Monday’s close, the Dow jumped more than 250 points, the S&P 500 climbed 47, and the Nasdaq added 224. In Canada, the TSX rose 128 points, aided by surging Shopify shares.
North American indexes finished mixed Tuesday, as major companies continued to report earnings. Meanwhile, the latest reading on the U.S. purchasing managers indexes showed that business activities continue to contract in January, though at a slower pace, while inflation continues to weigh on sentiment. By Tuesday’s close, the TSX and S&P 500 registered minimal losses, the Dow added 104 points, and the Nasdaq shed 30.
As expected, the Bank of Canada on Wednesday increased its benchmark interest rate by 25 basis points to 4.5%, the highest level in over 15 years. The BOC said it would now pause to assess the economic impact from sharply higher borrowing costs, while not ruling out future rate hikes if conditions warrant.
It was another mixed day of trading on Wall Street as investors parsed a range of corporate earnings, including key bellwether companies, like Microsoft, Boeing and pharmaceutical giant Abbott Laboratories. By Wednesday’s close, the Dow and S&P 500 were essentially flat, while the Nasdaq dropped 21 points. The TSX fell 30 points, weighed down by the industrials sector and disappointing earnings from Canadian National Railway.
According to U.S. Commerce Department data released Thursday, U.S. GDP for Q4 grew at a higher-than- expected annual rate of 2.9%, down slightly from Q3’s 3.2%. Consumer spending remained solid, although down a bit from Q3. The upside GDP surprise was good news for North American markets. The big winner was the Nasdaq, which added nearly 1.8%, while Dow and S&P 500 rose 0.6% and 1.1%, respectively. In Canada, the TSX rose roughly 0.5%.
Dri Financial Group 