North American markets gain on positive earnings from industrials, technology sectors
Published Friday, July 23, 2021 4:47AM EDT Last Updated Friday, July 23, 2021 5:20PM EDT
TORONTO -- Stock markets in Canada and the U.S. closed higher Friday after a day of small gains for multiple sectors, including industrials and technology.
Philip Peturrson, chief investment strategist at Manulife Investment Management, said while there were no huge gains Friday, Canada's benchmark stock index has been on the rebound all week after plummeting to its lowest level in months on Monday on investor fears over rising COVID-19 case counts around the world.
The S&P/TSX composite index closed at 19,616.62 Monday but then gained steadily throughout the week. On Friday, the S&P/TSX was up 90.91 points from the previous day's trading at 20,188.43.
“Today I think was a continuation of what we saw the rest of the week, and that would be an alleviation of the fears of the Delta variant - of the fears of any type of slowdown or pause in the recovery - and the market continues to grind higher on positive earnings results that we're seeing coming out of the United States,” Peturrson said.
In New York, the Dow Jones industrial average was up 238.20 points at 35,061.55. The S&P 500 index was up 44.31 points at 4,411.79, while the Nasdaq composite was up 152.39 points at 14,836.99.
The September crude oil contract was up 16 cents at US$72.07 per barrel and the September natural gas contract was up 6.0 cents at US$4.04 per mmBTU. However, the TSX's energy index remained relatively flat with a gain of less than a point.
The TSX industrials index closed higher by 3.21 points at 59.08. The TSX technology index closed higher by 3.38 points at 223.95.
The August gold contract was down US$3.60, at $1,801.80 an ounce and the September copper contract was up 6.2 cents at US$4.40 a pound.
Peturrson said that while some market watchers have speculated - especially after Monday's dip - that the growth phase of the market may be about to hit a peak, he disagrees.
“We're still in recovery from the COVID lockdown, and I think there are a number of data points that support that,” he said. “We haven't even yet entered a normalized expansion. The news as far as I'm concerned is still good. We're still along that path of growth.”
The Canadian dollar traded for 79.52 cents US compared with 79.57 cents US on Thursday. Peturrson said he expects it will hit 80 cents in the near future.
“We're seeing a little bit positive momentum not only in the stocks but also in commodities, and that's being reflected in the Canadian dollar,” he said.
This report by The Canadian Press was first published July 23, 2021.