Stock market: Toronto bounces, New York stops the bleeding

A solid rebound gave the Toronto Stock Exchange its best performance in a year as New York managed to balance itself in a fairly volatile session.

Fueled by a recovering energy sector, Toronto is emerging from a sluggish streak to say the least. After four sessions of significant declines, the S & P / TSX index regained some of the ground lost Thursday with a gain of 183 points (1.32%) to reach 14053 points.

Several titles abused in recent days have recovered. Alimentation Couche-Tard jumped 2.86%, with CN and PC gaining 2% and 3.62% respectively. MTY advanced 5.27%.

New York ended on a mixed note, managing to raise its head as the positive economic information broadcast in the United States and the hope of a possible boost from the Federal Reserve eased investor anxiety a little.

According to final results, the Dow Jones lost 0.15% or 24.50 points to 16,117.24 points, finishing lower for the sixth consecutive session.

The Nasdaq, predominantly technological, has appreciated by 0.05% or 2.07 points to 4,217.39 points.

The S&P 500 extended index nibbled 0.01% or 0.27 points to 1,862.76 points.

Wall Street thus limited the breakage after being strongly shaken Wednesday and early Thursday by heightened concerns about the global economy.

Shortly after the opening, the Nasdaq dropped to 4,131.65 points, dropping more than 10% from its last peak on September 2.

After such a downward movement, “the sellers had run out of steam and left the place,” commented Art Hogan of Wunderlich Securities.

Investors were won over by the good news on the US economy released on Thursday.

On the employment side, weekly jobless claims in the United States fell to their lowest level in 14 years during the week ended October 11.

Industrial production, for its part, rebounded more than expected in September in the country and the increase in manufacturing activity in the Philadelphia region slowed less than expected in October.

On the corporate front, investment bank Goldman Sachs, whose profits soared 60%, and medical insurance and health services provider UnitedHealth, which raised its annual profit forecast, both raised published results that exceeded expectations.

Comments from James Bullard, chairman of the Fed’s regional office in Saint Louis, Missouri, “suggesting that the central bank should consider delaying the end of asset purchases (scheduled for the next Monetary Committee meeting in late October). ) also helped the indices overcome the downward movement, ”analysts Charles Schwab said.

On Bloomberg Television, the Federal Reserve official said that “the FOMC might consider taking a break” from closing asset purchases, “waiting for new economic data and assessing how the US economy is doing on the market. rest of the year “.

This “intriguing” remark, however, did not come from a voting member of the FOMC, Art Hogan stressed. Above all, they show “a difference of opinion within Fed officials”.

The bond market ended sharply lower after starting the session higher. Sign of lower interest, the yield of 10-year Treasury bills rose to 2.153% against 2.090% Wednesday night, and that of 30-year bonds to 2.936% against 2.876% the day before.

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