September 17, 2021

Stocks in Toronto perked on the last Friday of August, following on the heels of their Americnn cousins, who took cheer at the latest tidings out of the Federal Reserve summit in Wyoming.

The TSX Composite Index advanced 140.49 points to conclude Friday at 20,644.64, for a gain on the week of 305 points, or 1.5%.

The Canadian dollar surged 0.44 cents to 79.27 cents U.S.

Energy stocks propelled the index higher, primarily due to Vermilion Energy, up 42 cents, or 5.3%, to $8.42, while Canadian Natural Resources hopped $1.76, or 4.7%, to $42.30.

Resource stocks also had a field day, with IAMGOLD up 14 cents, or 4.8%, to $3.05, while OceanaGold obtained 13 cents, or 5.9%, to $2.33.

Elsewhere, Fortuna Silver Mines tacked on 28 cents, or 5.4%, to $5.51, while Endeavour Silver climbed 33 cents, or 6.1%, to $5.77.

Consumer staples staggered backward, however, as Jamieson Wellness dropped 51 cents, or 1.4%, to $35.31, while North West Company forfeited 51 cents, or 1.4%., to $35.99.

Among financials, CIBC sagged $1.86, or 1.3%, to $146.33, while Canaccord Genuity gave back 20 cents, or 1.3%, to $15.23,.

On the economic schedule, Statistics Canada’s raw materials price index was up 2.2% on a monthly basis in July and 37.7% year over year. in July, while its industrial product price index fell 0.4% month over month in July, and was up 15.4% year over year.

ON BAYSTREET

The TSX Venture Exchange improved 15.88 points, or 1.8%. to 891.45, for a weekly gain of nearly 27 points, or 3.1%.

All but two of the 12 TSX subgroups were higher, with energy picking up 3%, while gold strengthened 2.9%, and materials sprang up 2.8%.

Consumer staples and financials tripped into the red, each backing off 0.2%.

ON WALLSTREET

Stocks rose on Friday heading for a winning week as Federal Reserve Chairman Jerome Powell prepared the markets for the central bank to pull back on some of its monetary stimulus, saying it’s likely to start tapering its $120 billion in monthly bond purchases this year.

The Dow Jones Industrials leaped 242.68 points to finish the week at 35,455.80.

The S&P 500 gained 39.37 points to 4,509.37, hitting a new record.

The NASDAQ Composite popped 183.69 points, or 1.2%, to 15,129.50, also at a new all-time peak.

The three major stock averages closed the week in the green. The Dow finished up nearly 1%, while the S&P 500 added 1.5% and the NASDAQ gained 2.8%.

Energy stocks led the S&P, after being among the hardest hit on Thursday. Occidental Petroleum climbed nearly 7%, Cimarex Energy rose 6.5% and APA Corp rose 5.9%.

Automakers got a boost with Ford in “drive” 3%, and General Motors rising 2%.

Shares of Workday surged 9% after reporting strong currently earnings and subscription revenue that jumped 23% from last year, while Peloton shares dropped after the exercise equipment company’s fourth-quarter financial results missed Wall Street estimates. Peloton fell 8%.

Powell also said inflation is solidly around the central bank’s 2% target rate, one of the goals of the Fed’s dual mandate. It has “much ground to cover” to reach its other goal of maximum employment, however, though there has “been clear progress” toward it, Powell added.

The Fed has used the term “substantial further progress” as a benchmark for when it will start tightening policy. Based on statements from other Fed officials, a tapering announcement could come as soon as the Fed’s Sept. 21-22 meeting.

Prices for 10-Year Treasurys were higher, with yields fading to 1.30% from Thursday’s 1.35%. Treasury prices and yields move in opposite directions.

Oil prices regained $1.30 to $68.72 U.S. a barrel.

Gold prices spiked $26.20 to $1,821.40 U.S. an ounce.

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