The Canadian market is up in positive territory Thursday morning, led by gains in materials stocks thanks to a surge in gold prices. Energy and consumer discretionary stocks are finding some support, while shares from other sectors are turning in a mixed performance.
Data showing stronger than expected Canadian and U.S. GDP growth contribute to the positive mood in the market.
Canada\'s economy is expected to have grown by 0.4% in February 2024, with increases in mining, quarrying, & oil & gas extraction, manufacturing, and finance & insurance offsetting decreases in utilities.
In January, the GDP expanded by 0.6%, more than the preliminary estimate of 0.4%,
Another data from Statistics Canada showed average weekly earnings of non-farm payroll employees in Canada rose by 3.9% year-on-year to $1,228 in January 2024,
A report from the Canadian Federation of Independent Business said that its business barometer in Canada, a long-term index reflecting 12-month forward expectations for business performance in the country, fell to 52.7 in March, from an upwardly revised 55.1 in February.
Data from the Commerce Department showed the U.S. economy unexpectedly grew by more than previously estimated in the fourth quarter of 2023.
Revised data showed real gross domestic product surged by 3.4% in the fourth quarter compared to the previously reported 3.2% jump. Economists had expected the pace of GDP growth to be unrevised.
The benchmark S&P/TSX Composite Index is up 78.85 points or 0.36% at 22,185.93, and is just a few points off a 52-week high.
Novagold (NG.TO) and Seabridge Gold (SEA.TO) are gaining 4.5% and 4.4%, respectively. First Quantum Minerals (FM.TO), Iamgold (IMG.TO), Equinox Gold Corp (EQX.TO), MAG Silver Corp (MAG.TO), Ssr Mining (SSRM.TO) and First Majestic Silver Corp (FR.TO) are up 3 to 4%.
Consumer discretionary stock Brp Inc (DOO.TO) is up more than 6%. reported net income of C$188.2 million or C$2.46 per share for the fourth quarter, lower than C$365.1 million or C$4.54 per share in the same quarter a year ago. Revenue for the quarter declined to C$2.692 billion from C$3.076 billion in the previous year.
For fiscal 2025, BRP expects normalized earnings per share to be in the range of $7.25 to $8.25. Revenue for the year is expected between $9.1 billion and $9.5 billion.
Canada Goose Holdings (GOOS.TO) is up 3% and Gildan Activewear (GIL.TO) is gaining 1.5%. Sleep Country Canada Holdings (ZZZ.TO), Canadian Tire Corp (CTC.A.TO), Spin Master (TOY.TO) and Restaurant Brands International (QSR.TO) are up 0.6 to 1%.