TSX closes slightly lower with trade tensions, corporate earnings in focus

Investing.com - Canada’s main stock exchange slipped minimally on Friday, with traders eyeing the prospects of U.S. trade deals and a bevy of U.S. corporate earnings.

By the 4:00 ET close, the S&P/TSX 60 index had dropped by 0.2 points, or 0.01%.

Toronto Stock Exchange’s S&P/TSX composite index lowered by 17 points, or 0.1%, after jumping 254.85 points, or 1%, on Thursday, logging its highest closing level since April 2. The average is edging nearer to erasing its decline since the start of the year.

Analysts cited by Reuters said that strong U.S. company results, hopes that the Trump administration can secure a raft of trade deals, and a potential Federal Reserve interest rate cut in June have helped to bolster sentiment.

With Canada’s federal election looming on April 28, voters and markets are scrutinizing campaign platforms for signals on spending and deficits. CIBC (TSX:CM) Chief Economist Avery Shenfeld warned investors shouldn’t place too much weight on the fiscal projections offered by either major party, saying, "There could be quite a gap between what’s there in print... and what we might see on budget day.”

U.S. stocks close slightly higher

U.S. stock indexes were marginally higher on Friday, as investors assessed earnings from Google-owner Alphabet (NASDAQ:GOOGL) and a possible de-escalation of trade tensions.

At the 4:00 ET close, the Dow gained 20.1 points or 0.05%. The S&P gained 40.4 points or 0.7%, and the Nasdaq jumped 216.9 points or 1.3%.

The main Wall Street indices closed Thursday with sold gains, putting them on a three-day winning streak and on course for a positive week.

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As of Thursday’s close, the S&P 500 has a week-to-date gain of nearly 4%, the Dow Jones Industrial Average is up more than 2% and the NASDAQ Composite is more than 5% higher.

In Thursday earnings, Google (NASDAQ:GOOGL) reported strong earnings for the first quarter and announced a $70 billion stock buyback. Google stock is up 2.2% in response to the results, as of 1:10 ET.

Intel Corporation (NASDAQ:INTC) also reported strong earnings on Thursday evening, but offered weak guidance bolstered by tariff fears. Intel stock is down in trading by 7% today, as of 1:10 ET.

In Friday morning’s earnings barrage, AbbVie Inc (NYSE:ABBV) beat expectations, and raised its full-year outlook on strong results from its Skyrizi and Rinvoq immunology drugs. Shares of Abbvie gained throughout the day, and are now up 2.7% at 1:15 ET.

Oil heads for weekly drop 

Both the Brent and West Texas Intermediate crude contracts were set to decline this week after Reuters reported that several oil producing nations in the OPEC oil group are pushing to accelerate output hikes in June, extending May’s surprise boost, as internal disputes over quota compliance deepen.

OPEC and allies like Russia, known as OPEC+, will meet on May 5 to finalize their plans for June output levels.

However, Oil prices rose on Friday, as Crude Oil WTI Futures rose 0.6% to $63.19 per barrel, and Brent Oil Futures increased by 0.7% to $66.98 a barrel by 5:50 ET.

Gold falls as risk appetite boosted

Gold prices fell slightly as risk appetite improved amid signs of the U.S. and China potentially backing down from a bitter trade conflict.

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As of 5:50 ET, Gold futures lowered by 0.5%, pricing near the $3,330/oz mark.

A recovery in the dollar -- from three-year lows -- also pressured broader metal prices. But gold still remained in sight of a $3,500 an ounce record high hit earlier this week.

(Scott Kanowsky also contributed to this article)

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