TORONTO - Canada's main stock index gained 100 points Thursday, led by gains in energy, technology and financials, while U.S. stock markets fizzled to a mixed close following earnings from Nvidia.
The S&P/TSX composite index closed up 100.51 points at 23,227.49.
In New York, the Dow Jones industrial average was up 243.63 points at 41,335.05. The S&P 500 index was down 0.22 points at 5,591.96,while the Nasdaq composite was down 39.60 points at 17,516.43.
All eyes were on Nvidia, as the semiconductor giant at the forefront of the artificial intelligence boom reported its latest earnings Wednesday after the market closed.
Nvidia saw its revenues and profits for its fourth quarter soar year over year, beating expectations. But the company鈥檚 share price fell more than six per cent Thursday.
The results didn鈥檛 appear to meet the high bar set for the company, said Pierre-Beno卯t Gauthier, vice-president of investment strategy at IG Wealth Management.
鈥(The results) were not bad, and they were not mind-blowing either,鈥 said Gauthier.
鈥淏ut the expectation for this company is to blow minds quarter after quarter, and it鈥檚 clearly not going to happen.鈥
However, unlike previous trading sessions when a fall or a leap in Nvidia stock would drive the entire market鈥檚 direction, the overall reaction this time was tame, said Gauthier. The Nasdaq and the S&P 500 traded in the green for most of the day before dipping near the end, while the Dow gained 0.6 per cent.
That鈥檚 a sign of the continued broadening in equities that鈥檚 been unfolding in recent months, said Gauthier, with investors selling off Nvidia stock not in favour of cash or bonds, but of other areas in the stock market.
鈥淎nyone taking profits from Nvidia right now is putting them elsewhere, and today was a great example of that,鈥 he said.
As time goes on, Nvidia won鈥檛 be able to grow at the same frenzied rate, said Gauthier: 鈥淭he results are going to get more normal in time.鈥
Helping boost markets鈥 outlook on Thursday was news that the U.S. Commerce Department upgraded its assessment of U.S. economic growth for the second quarter.
The news conflicted with disappointing earnings from Dollar General in the U.S., noted Gauthier.
He said that鈥檚 a sign that American consumers are 鈥渟plit in two鈥 鈥 many with higher incomes and asset levels continue to spend at a rate that鈥檚 keeping the economy steady, while others with lower incomes are 鈥渢apped out.鈥
In Canada, CIBC tied up the big bank earnings with strong results that beat analysts鈥 expectations. This quarter, several banks disappointed with their results while others did just the opposite.
The Canadian banks used to be a 鈥渂ig block鈥 when it came to earnings, said Gauthier.
鈥淭here is a lot of disparity between the revenue streams of the Canadian banks,鈥 he said, adding that means investors need to ensure their holdings in bank stocks are diversified.
The Canadian dollar traded for 74.22 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.39 at US$75.91 per barrel and the October natural gas contract was up four cents at US$2.14 per mmBTU.
The December gold contract was up US$22.50 at US$2,560.30 an ounce and the December copper contract was up less than a penny at US$4.22 a pound.
鈥 With files from The Associated Press
This report by 香港六合彩挂牌资料 was first published Aug. 29, 2024.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
