Stocks north of the border managed to hold onto gains they sustained throughout much of Tuesday, as the nation’s largest lenders joined a global rally in financial shares amid speculation the U.S. central bank is prepared to raise interest rates this summer.
The S&P/TSX Composite Index remained afloat 33.27 points – off its highs of the morning -- to close Tuesday at 13,952.85
The Canadian dollar dipped 0.01 cents to 76.08 cents U.S.
Canadian markets were shuttered Monday for the Victoria Day holiday.
In Canada, Bank of Nova Scotia gained 66 cents, or 1.1%, to $63.76, and Royal Bank of Canada added 67 cents to $78.52 to lead a gain among the big banks. The nation’s largest lenders now sit at the highest level in a year before Bank of Montreal kicks off the second-quarter earnings schedule on Wednesday.
The Bank of Canada is also set for its next policy decision on Wednesday, with the renewed speculation of an interest-rate increase at the Fed lowering the pressure on the central bank to cut its own lending rates to keep the currency competitive for exports. Higher U.S. rates weaken the Canadian dollar, making this country more attractive for foreign investment.
Suncor Energy gained 89 cents, or 2.6%, to $35.39, and Imperial Oil Ltd. rose 52 cents, or 1.3%, to $41.54.
Weighing on markets were gold issues, primarily Kinross Gold, falling 79 cents, or 12.2%, to $5.71, and Yamana Gold, off 60 cents, or 9.7%, to $5.62.
ON BAYSTREET
The TSX Venture Exchange slumped 10.83 points, or 1.6%, to 675.31.
All but three of the 13 TSX subgroups were positive on the day, as financials and consumer discretionary stocks spiked 1.2% each, while consumer staples picked up 1%.
The three laggards were gold, down 6.2%, materials, sliding 4.3%, and metals and mining, down 3%.
ON WALLSTREET
U.S. stocks closed more than 1% higher Tuesday, following encouraging reports on the housing market and sharp gains in European stocks.
The Dow Jones Industrials flew 213.12 points, or 1.2%, to 17,706.05, with Goldman Sachs, UnitedHealth and Home Depot contributing the most to gains as nearly all member stocks rose.
The S&P 500 was positive 28.43 points, or 1.4% to 2,076.47, with information technology leading all 10 sectors higher.
The NASDAQ Composite leaped 95.27 points, or 2%, to 4,861.06, with Apple up more than 1.5%.
Toll Brothers traded more than 8.5% higher and remained on pace for its best day since 2013. The luxury homebuilder reported earnings that beat on both the top and bottom line, as the company sold more luxury homes at higher prices, mainly in California. The firm also raised its forecast for home sales.
In other earnings news, Best Buy reported earnings that beat on both the top and bottom line but gave current-quarter forecast below Street forecasts.
AutoZone posted earnings that missed expectations and revenue below estimates, primarily due to weather-related factors in certain areas of the country and a legal charge
New home sales for April jumped 16.6% to a seasonally-adjusted annual rate of 619,000 units, topping expectations and the highest level since January 2008.
In other U.S. economic news, the Richmond Fed index for May showed minus one.
Prices for the 10-year Treasury gained back lost strength, lowering yields back to Monday’s 1.86%. Treasury prices and yields move in opposite directions.
Oil prices gained 70 cents a barrel to $48.78 U.S.
Gold prices plummeted $21.35 to $1,227.78 U.S. an ounce.
