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Stocks Warm to Bank Rate Cut


Toronto stocks climbed on Wednesday after the Bank of Canada trimmed its key policy rate.

The central bank reduced its target for the overnight rate to 4.75%, with the Bank Rate at 5% and the deposit rate at 4.75%. The Bank is continuing its policy of balance sheet normalization.

The S&P/TSX Composite Index rocketed 146.59 points to pause for lunch hour Wednesday at 22,124.77.

The Canadian dollar let go of 0.02 cents at 72.97 cents U.S.

In company news, waste management giant GFL Environmental is reported to have hired a financial adviser to review two buyout offers. GFL began the faced noon EDT ahead $1.65, or 3.3%, to $52.30.

Utilities led the pack, as Boralex jumped $1.01 ,or 2.9%, to $35.84, while Innergex Renewable marched along 22 cents, or 2.1%, to $10.55.

Tech issues also scored well, as Coveo Solutions triumphed 46 cents, or 6.4%, to $7.69, while Dye & Durham captured 59 cents, or 4.8%, to $12.85.

ON BAYSTREET

The TSX Venture Exchange edged up 2.56 points to 597.99.

All 12 subgroups gained ground, led by information technology climbed 1.3%, while materials and real-estate each climbed 1.2%.

ON WALLSTREET

The S&P 500 rose Wednesday as Nvidia hit a record to lead major tech stocks higher. Weak labour market data also gave investors hope the Federal Reserve might move to lower interest rates later this year.

The Dow Jones Industrials regained 52.32 points to hit noon EDT at 38,763.61.

The much-broader index grabbed 39.85 points to 5,331.19.

The NASDAQ popped 234.35 points, or 1.4%, to 17,091.23.

As for Nvidia, its shares galloped $34.28, or 2.9%, to $1,198.65.

Along with Nvidia, other tech shares were leading Wednesday’s gains. Hewlett Packard Enterprise climbed more than 13% after fiscal second-quarter revenue topped Wall Street estimates. CrowdStrike jumped 7% on stronger-than-expected earnings and guidance.

Fellow technology and AI play’s Meta Platforms gathered 2%, and Alphabet climbed 1%.

Private payroll data from ADP showed hiring slowed to 152,000 jobs last month, far below the 175,000 economists polled by Dow Jones expected. The data is the latest sign of weakness in the labor market that investors hope will give the Federal Reserve enough evidence to cut benchmark interest rates.

Traders also regarded data on activity in the services sector. Business services PMI rose more than expected to 53.8 compared to an estimate from Dow Jones that called for 50.7. Attention will turn to weekly jobless claims numbers on Thursday and Friday’s all-important May jobs report.

Job opening and labour turnover data from Tuesday morning showed 8.059 million vacancies in April, the lowest level in more than three years.

Prices for the 10-year Treasury slid, raising yields to 4.29% from Tuesday’s 4.33%. Treasury prices and yields move in opposite directions.

Oil prices recovered 20 cents to $73.45 U.S. a barrel.

Gold prices gained $26.90 to $2,374.30



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