Healthcare, Bank Stocks Lift TSX

(RTTNews) - After a positive start and a subsequent fall into negative territory, the Canadian stock market recovered swiftly and stayed firm right till the end to finish modestly higher on Thursday.

Healthcare stocks were in great demand. Consumer discretionary, industrials, financials and telecommunications stocks were the other notable gainers. Energy stocks declined, tracking weak crude oil prices. Materials stocks ended on a mixed note.

Investors continued to keep track of the developments on the NAFTA front. Canada's Foreign Affairs Minister Chrystia Freeland and her U.S. trade counterpart continue to negotiate, aiming to find a compromise that would help finalise the NAFTA ahead of the October 1 deadline.

"Trade agreements do take some time, both to negotiate and to update, because the economy is complicated and trade agreements are complicated," said Freeland. When asked about whether she could hear the clock ticking, she is reported to have said, "Canada's sole objective, the only target that we are aiming for, is getting a good deal for Canada, so that's what we're focused on.

Canadian Prime Minister Justin Trudeau said on Wednesday that he wanted to see flexibility from the United States if the two sides are to reach a deal on renewing the North American Free Trade Agreement.

The benchmark S&P/TSX Composite Index ended up 64.83 points, or 0.40%, at 16,214.75, after scaling a low of 16,147.05 and a high of 16,225.34 intraday. On Wednesday, the Index ended down 46.12 points, or 0.28%, at 16,149.92.

The Capped Healthcare Index climbed up 6.31%. Aurora Cannabis Inc. (ACB.TO) jumped 12.7%, Canopy Growth Corporation (WEED.TO) surged up 6.5%, HEXO Corp. (HEXO.TO) gained 4.85%, Bausch Health Companies Inc. (BHC.TO) advanced by 4% and Aphria Inc. (APH.TO) added 3.5%.Cronos Group Inc. (CRON.TO) gained 9.2%/ Aleafia Health Inc. and Cronos Group Inc. announced the commencement of a joint medical cannabis study to improve the management and treatment of insomnia and daytime sleepiness.

The Consumer Discretionary Index gained 1.78%. Magna International Inc. (MG.TO) ended up 3.7%. The company announced today that its powertrain unit has signed an agreement to sell its global Fluid Pressure & Controls business to South Korea-based Hanon Systems, for approximately $1.23 billion.

The Stars Group Inc. (TSGI.TO) ended 4.5% up, while Restaurant Brands International Inc. (QSR.TO) and Dollarama Inc. (DOL.TO) both gained about 1.85%.

The Capped Industrials Index gained 1.16%. Canadian National Railway Company (CNR.TO) and Bombardier Inc. (BBD.B.TO) added 2.1% and 2.6%, respectively. SNC-Lavalin Group Inc. (SNC.TO), Air Canada (AC.TO), Ritchie Bros. Auctioneers (RBA.TO), Waste Connections Inc. (WCN.TO) and Toromont Industries (TIH.TO) gained 0.6% to 1.1%.

The Capped Financial Index ended up 0.61%. Royal Bank of Canada (RY.TO), Toronto-Dominion Bank (TD.TO) and Canadian Imperial Bank Of Commerce (CM.TO) gained 0.5% to 0.7%, while Bank of Nova Scotia (BNS.TO) advanced by 1.1%. Bank of Montreal (BMO.TO) and National Bank of Canada (NA.TO) ended flat.

In the Energy Index, Suncor Energy Inc. (SU.TO), Canadian Natural Resources (CNQ.TO) and PrairieSky Royalty (PSK.TO) lost 1.2% to 1.7%. Baytex Energy Corp. (BTE.TO) ended 2.5% down and Husky Energy Inc. (HSE.TO) declined by 2.75%, while Imperial Oil (IMO.TO) gained 1.1%.

Among materials stocks, Nutrien (NTR.TO) and CCL Industries Inc. (CCL.B.TO) declined by 1.4% and 1.1%, respectively. Teck Resources (TCK.B.TO) gained more than 1.5% and Wheaton Precious Metals Corp. (WPM.TO) added 1.2%. Lundin Mining Corporation (LUN.TO) ended 3.7% up.

Information technology stock Shopify Inc. (SHOP.TO) gained 1.2%, BlackBerry (BB.TO) ended 1.5% up and Descartes Systems Group Inc. (DSG.TO) surged up 1.8%. Celestica Inc. (CLS.TO) declined by over 4.75%.

The U.S. market ended on a buoyant note, with the Dow and the S&P 500 reaching record closing highs, as investors to shrug off concerns about the escalating trade dispute between the U.S. and China.

The European markets ended higher, extending their recent winning streak. Asian markets ended on a muted note on Thursday.

In economic news, the Organization for Economic Cooperation & Development downgraded it global growth projections for both 2018 and 2019. According to Interim Economic Outlook, the global economy will grow 3.7% each this year and next. In May, the OECD had projected 3.8% expansion for 2018 and 3.9% for 2019.

The United States will expand 2.9% in 2018 and 2.7% in 2019, the agency said. China's growth is seen at 6.7% this year and 6.4% in 2019.

In U.K., retail sales grew unexpectedly in August, gaining 0.3% month-on-month, data from the Office for National Statistics revealed. However, it was slower than the 0.9% increase seen in July. Sales were expected to fall 0.2% in the month.

In U.S. economic news, data released by the Labor Department showed initial jobless claims unexpectedly dipped to their lowest level in nearly fifty years in the week ended September 15th. The report said jobless claims edged down to 201,000, a decrease of 3,000 from the previous week's unrevised level of 204,000.

A separate report from the Conference Board said its leading economic index rose by 0.4% in August after climbing by an upwardly revised 0.7% in July.

Meanwhile, the National Association of Realtors' report showed existing home sales were unexpectedly flat in August, with sales growth in the Northeast and Midwest offset by downturns in the South and West.

In commodities, crude oil futures for October expired at $70.80 a barrel today, losing $0.32, or 0.55%, for the session. Crude oil futures for November delivery ended lower by $0.45, or 0.6%, at $70.32 a barrel.

Natural gas futures for October were up $0.050, or 1.72%, at $2.958 per million btu.

Gold futures for December ended up $3.00, or about 0.30%, at $1,211.30 an ounce, the highest settlement price so far this month.

Silver futures for December settled at $14.305 an ounce, gaining $0.025 for the session.

Copper futures for December ended up $0.0105, at $2.7400 per pound.