TORONTO — Canada’s main stock index posted a small gain Friday, closing out the first trading week of 2024, while U.S. markets also ended the day marginally higher.
The first week of 2024 broke Wall St.’s nine-week winning streak.
Though January tends to be a stronger month, it’s not a surprise to see a “technical reset” after such a robust end to 2023, said Brianne Gardner, senior wealth manager with Velocity Investment Partners at Raymond James Ltd.
The tone in the markets is “a little more defensive” than it was heading into the end of the year, she said.
The S&P/TSX composite index closed up 66.20 points at 20,937.55.
In New York, the Dow Jones industrial average was up 25.77 points at 37,466.11. The S&P 500 index was up 8.56 points at 4,697.24, while the Nasdaq composite was up 13.77 points at 14,524.07.
Friday brought fresh data on the labour market in both Canada and the U.S. for December.
The latest U.S. jobs report showed an unexpected acceleration in hiring, as well as a rise in average hourly pay.
The jobs report showed “the U.S. is in pretty good shape,” said Gardner.
The data in Canada was decidedly weaker, with the total number of jobs virtually unchanged in December, and unemployment holding steady at 5.8 per cent.
However, average hourly wages rose 5.4 per cent year-over-year, up from 4.8 per cent in November.
Higher interest rates have weighed on consumer spending and business investments in Canada, said Gardner.
The data released Friday gives the Bank of Canada more room to lower its key rate in the coming months, she said, though she noted it’s highly unlikely the central bank will start cutting at its January meeting.
Interest rate cuts could happen sooner in Canada than the U.S., said Gardner.
“I think in the U.S. they do have a little bit more of a resilient labour market that could help them achieve a soft landing,” she said.
The Canadian dollar traded for 74.92 cents US compared with 74.88 cents US on Thursday.
The February crude oil contract was up US$1.62 at US$73.81 per barreland the February natural gas contract was up seven cents at US$2.89 per mmBTU.
The February gold contract was down 20 cents US at US$2,049.80 an ounceand the March copper contract was down four cents at US$3.81 a pound.
— With files from The Associated Press
This report by The Canadian Press was first published Jan. 5, 2024.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
