TSX Registers Weekly Increase Amid Positive Corporate Earnings Reports

Toronto Stock Exchange Rises to Near Three-Week High Amid Uncertainty

TORONTO, - The Toronto Stock Exchange's S&P/TSX composite index ended the week on a positive note, rising 0.7% to close at 34,077.76 on Friday. This marks the highest closing level since April 20, as investors responded to recent growth in corporate earnings and tempered expectations for interest rate hikes.

The index gained 221.14 points for the day, with the materials group leading the gains as gold prices increased. The group rose 3.3%, outperforming other sectors. The consumer discretionary sector was another bright spot, adding 1.1% as shares of Aritzia jumped 4.5% after the clothing retailer beat earnings estimates.

Despite the positive close, the Canadian economy shed 17,700 jobs in April, pushing the unemployment rate to a six-month high of 6.9%. This weakness in the labor market has led some to believe that the Bank of Canada will keep interest rates unchanged for some time.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

The Bank of Canada's 2-year yield fell 7.4 basis points to 2.860%, extending its pullback from a six-week high of 3.077% on Monday. In contrast, U.S. employment data pointed to labor market resilience, reinforcing expectations that the U.S. Federal Reserve would leave interest rates unchanged for some time.

Enbridge reported first-quarter adjusted profit that surpassed analysts' expectations, but the pipeline operator's shares were down 0.5% for the day, capping gains for the energy sector. U.S. crude oil futures settled 0.6% higher at $95.42 a barrel.