TSX Hikes on Energy Boost

Canada's main stock index edged higher on Thursday, boosted by gains in energy shares, while positive comments on interest rates from Bank of Canada Governor Tiff Macklem and U.S. Federal Reserve also lifted sentiment.

The TSX Composite recovered 63.64 points midday to 21,792.19.

The Canadian dollar gained 0.14 cents at 73.01 cents U.S.

Among health-care concerns, Bausch Health shares crumbled $1.06, or 8.8%, to $10.97, after the company's quarterly results.

In corporate news, shares of Air Canada dropped $1.74, or 8.5%, to $18.72 after Canada's largest carrier reported a bigger-than-expected first-quarter loss on higher operating costs tied to labor and aircraft maintenance.

Thomson Reuters gained $16.02, or 7.7%, to $224.43, as the information provider beat first-quarter revenue forecast amid continued investment in artificial intelligence.

Vermilion Energy jumped 59 cents, or 3.8%, to $16.11 and was the top gainer on TSX after its first-quarter revenue fell less than expected.

Macklem told the House of Commons finance committee on Thursday that there is a limit to how far U.S. and Canadian interest rates can diverge but "certainly we're not close to that limit". He had said on Wednesday BoC was getting closer to being able to start cutting interest rates from its current 23-year highs.

On the economic calendar, Statistics Canada says Canada's merchandise exports declined 5.3% in March, while imports were down 1.2%. Thus, Canada's merchandise trade balance with the world went from a surplus of $476 million in February to a deficit of $2.3 billion in March, the largest trade deficit since June 2023.

ON BAYSTREET

The TSX Venture Exchange remained lower 1.74 points to 582.21.

Eight of the 12 subgroups were in positive territory by noon hour, with industrials soaring 1.1%, real-estate better by 0.8%, and information technology gaining 0.7%.

The four laggards were weighed most by health-care, slumping 1.4%, while communications sank 0.9%, and materials were off 0.3%.

ON WALLSTREET

Stocks rose Thursday as investors looked ahead to more corporate earnings and a key labor report set for later in the week.

The Dow Jones Industrials leaped 149.79 points to pause for lunch Thursday at 38,053.05.

The S&P 500 forged ahead 19.85 points to 5,038.24.

The NASDAQ zoomed 125.22 points to 15,730.70.

Chipmaker Qualcomm rose 9% on better-than-expected earnings and strong revenue guidance. Restaurant delivery service DoorDash dropped 13% after reporting a wider loss per share than Wall Street forecast. Used car retailer Carvana soared 34% after reporting its best-ever earnings after the bell Wednesday.

Those moves followed a choppy day on Wall Street as investors reacted to the Federal Reserve’s decision to keep interest rates unchanged.

In the closely-watched press conference, Fed Chair Jerome Powell essentially ruled out an interest rate hike as the central bank’s next move, despite few recent signs of easing inflation.

Thursday’s quarterly earnings reports are dominated by Apple and Amgen after the close, alongside Coinbase and DraftKings

Prices for the 10-year Treasury gained ground, lowering yields to 4.59% from Wednesday’s 4.63%. Treasury prices and yields move in opposite directions.

Oil prices fell 23 cents to $78.77 U.S. a barrel.

Gold prices slid $1.40 to $2,309.60.