November 28, 2021

Canada’s main stock index remained in the stratosphere on Friday, aided by strength in resource stocks and a slew of upbeat corporate earnings, putting the benchmark index on course for a whopping weekly gain.

The S&P/TSX Composite popped 113.69 points to finish the session at 21,455.82, for a gain on the week of 418 points, or 1.99%.

The Canadian dollar took on 0.03 cents to 80.34 cents U.S.

A Canadian court is set to pronounce its verdict on which of the dueling boards and chairs of Rogers Communications is legitimate, a dispute that has warped the country’s biggest wireless carrier after a feud in the founding family erupted into the open.

Rogers shares gave up $1.01, or 1.7%, to finish at $58.91.

Elsewhere, energy proved king of the markets Friday, as Arc Resources jumped 95 cents Friday, or 7.9%, to $12.92, while Enerplus improved 83 cents, or 7%,

New Gold led its rivals in the markets for the shiny yellow metal, picking up 11 cents, or 6.2%, to $1.89, while Novagold gained 41 cents, or 4.3%, to $9.65.

Among other resource concerns, First Majestic Silver ballooned 89 cents, or 5.6%, to $16.69, while Silvercorp Metals raced higher 28 cents, or 5.4%, to $5.45.

Health-care stocks, however, took their knocks, primarily Canopy Growth, tumbling $1.94, or 11.7%, to $14.59, while rival Aurora Cannabis lost 26 cents, or 3.1%, to $8.25.

In real-estate, Summit Industrial Income REIT units backed off 34 cents, or 1.4%, to $23.55, while Granite REIT lost $1.26, or 1.3%, to $99.28.

On the economic beat, Statistics Canada says that, after returning to its pre-pandemic level in September, employment held steady, in October, taking on 31,000 jobs. The agency added the unemployment rate fell by 0.2 percentage points to 6.7%.

Elsewhere, Western University’s IVEY Purchasing Managers index dived sharply to 59.3 from 70.4 in September, but higher than the 54.5 figure for October 2020.

Canadian banks and insurers can resume dividend increases and share buybacks and raise executive compensation, the country’s financial regulator said on Thursday, lifting a moratorium it imposed in March 2020 and possibly paving the way for a boost to the sector’s valuation.

Ontario on Thursday projected a smaller budget deficit as stronger-than-expected economic growth helped boost tax revenues and the COVID-19 pandemic fades.

ON BAYSTREET

The TSX Venture Exchange retreated Friday 3.12 points to 985.14, but still shot ahead on the week by 44 points, or 4.75%.

All but two of the 12 TSX subgroups were higher by the closing, with energy pumping 2.7% higher, gold shinier by 2.5%, and materials stronger 1.5%.

The two laggards were health-care, falling 1.6%, and real estate inching back 0.04%.

ON WALLSTREET

U.S. stocks rallied to record levels on Friday after the October jobs report came in better than expected, boosting optimism about the economic recovery.

The Dow Jones Industrial Average leaped 203.72 points to 36,327.95.

The S&P 500 gained 17.47 points to add to Thursday’s all-time high at 4,697.53, celebrating its seventh straight positive day.

The NASDAQ Composite jumped 31.28 points to 15,971.59.

All three major averages reached their respective record closing highs.

A major development from Pfizer regarding its easy-to-administer COVID-19 pill fueled hope for a smooth reopening further, sending shares of airlines and cruise line operators soaring.

Pfizer shares surged nearly 11% after the company said its COVID-19 drug, used with an HIV drug, cut the risk of hospitalization by 89%. Pfizer board member Dr. Scott Gottlieb said Friday that the pandemic could be over in the U.S. by the time President Biden’s workplace vaccine mandates take effect in early January.

The news boosted classic reopening plays. United Airlines shares jumped more than 7%, while American Airlines popped 5.7%. Carnival and Royal Caribbean rallied more than 8% each, while Norwegian Cruise Line advanced 7.9%.

Recovery stock Expedia saw its shares roar higher by 15.7% a day after the company said renewed travel demand boosted its top and bottom lines higher than analysts had expected.

Peloton shares cratered more than 35% after the fitness platform and maker of interactive treadmills and exercise bikes reported a much larger loss than expected and cut its full-year outlook as fitness buffs headed back to the gym and away from at-home workouts.

The move for stocks came as job gains for the month of October totaled 531,000. Consensus estimates called for 450,000 jobs added, according to Dow Jones. The report also revised September’s disappointing number up to 312,000 job gains from 194,000 previously, and increased its August number by a similar amount.

Prices for 10-year Treasurys jumped sharply, lowering yields to 1.45% from Thursday’s 1.52%. Treasury prices and yields move in opposite

directions.

Oil prices regrouped $2.68 to $81.49 U.S. a barrel.

Gold prices brightened $25.10 to $1,818.60 U.S. an ounce.

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