Wall Street took its flagship indices, the Dow Jones and the S&P / 500, to new records on Thursday, praising the dovish tone of the European Central Bank and the hope of good employment figures on Friday.
The Dow Jones Industrial Average rose 0.40%, or 70 points to 17,554 points and the S&P / 500 index expanded 0.37% or 7.50 points to 2031 points, new levels in closing. Nasdaq also finished in positive territory, gaining nearly 18 points (0.38%) to 4638 points.
In Toronto, the S&P / TSX has offered a modest gain of 15 points (0.1%) to 14 563 points, resistant to lower crude oil prices.
The price of crude West Texas Intermediate (WTI) fell 0.71 US dollar (0.9%) at $77.97, while Brent crude lost $0.15 at $82.38.
The engineering firm SNC-Lavalin, which has just announced the elimination of 4,000 jobs worldwide, including about 1,000 in Canada, hit a yearly low of 42.20 dollars during the session. The stock ended the day down by 3.73 dollars (8.07%) at $42.47.
Brokers have enthusiastically received the announcement about “encouraging figures on the US economy on the side of jobless as the country’s productivity,” noted experts Charles Schwab.
On the labor market, new jobless claims in the US fell more sharply than expected, according to the Labor Department.
Productivity in the US rose more than expected in the third quarter, even though it has slowed down compared to the previous quarter, according to estimates from the Labor Department.
Traders also digested “the monetary policy decisions from the European Central Bank (ECB) and the Bank of England (BoE),” continued analysts.
The head of the ECB, Mario Draghi, hinted on Thursday at a monthly press conference that new measures to support the economy were considered, if necessary. An announcement welcomed by European stock and accompanied by a fall in the euro against the dollar in particular.
The Bank of England (BoE) kept its rate on Thursday, as expected, at 0.50%, and left unchanged the total amount of its program of asset, which reached its maximum redemption rate, opting for a wait.
Some corporate earnings also drew the attention of US investors including, the welcomed Californian electric car manufacturer Tesla, taking 6.51% to 246.00 dollars, which also expressed convincing sales forecasts.
The better than expected results were shown by News Corp., the media company of Rupert Murdoch, despite the continued decline in advertising revenue of its newspapers, which allowed it to gain 2.68% at $15.71.
The Microsoft IT group, which on Thursday announced the availability of a lighter version of its flagship product, the Office suite, comprising Word, Excel and PowerPoint, rose from 1.07% to 48.37 dollars.
Allergan, maker of Botox anti-wrinkle treatment, coveted by Canadian rival Valeant (-0.93% to 130.58 dollars), which announced on Thursday that it had been approached by another group but did not reveal the identity of a possible merger, rose 1.69% to 199.63 dollars.
The bond market retreated a bit. The yield on 10-year Treasury progressed to 2.353% against 2.350% Wednesday night, and so did 30-year Treasury at 3.076% against 3.065%.