The Toronto market has been kept afloat by relatively strong economic growth. The energy sector rose 2.6 percent. US crude prices rose 2.4 percent and closed at US $53.90 a barrel as the top producers agreed that they would extend a deal to cut output.
Among energy shares Canadian Natural Resources rose 2.8 percent and Encana Corp. climbed 4.9 percent.
The more dovish stance on raising interest rates bodes well for corporate earnings according to Bryden Teich, portfolio manager at Avenue Investment Management who said: “It means the economy is given a longer runway to continue to grow. The longer the economy has to continue to grow and build momentum and they’re on the sidelines, the better it is for the market.”
The S & P/ TSX rose 61.88 or .39 percent to close at 15,953.51. This was the seventh consecutive week of gains at the Toronto market. Teich saw the index reaching 16,200 to 16,300 by the year end if the economy continues on course and corporate earnings are good.
Not all earnings news was positive today. Cameco suffered a third quarter loss and its stock fell 6.3 percent. Another loser was First Quantum Minerals that lost 1.9 percent after also suffering a third quarter loss.
In the US news was mostly positive as well for share prices. Technology shares rose as Amazon, and Alphabet Inc. posted stellar profits for the quarter. The Nasdaq 100 set a record and its biggest gain since March of last year.
The S & P 500 index also hit a new high as the US had its strongest consecutive quarters of growth in GDP in three years.
The US markets also extended their winning street to its seventh week. The Dow Jones rose a marginal 0.1 percent to 23,434, but the S & P 500 was up 0.8 to 2,581 for the new record. In reaching its new record, the Nasdaq rose even more at 2.2 percent to 6,201.
