Equity markets in Canada’s biggest centre opened higher on Wednesday, buoyed by gains for gold miners and other resource stocks as well as several consumer and technology names that beat earnings expectations.
The S&P/TSX Composite improved 48.91 points to begin trading at 14,598.91
The Canadian dollar eked up 0.03 cents to 75.86 cents U.S.
Investor focus was also on quarterly results from major companies including Barrick Gold, Goldcorp and Suncor Energy later in the day.
Barrick opened for business up 68 cents, or 2.5%, to $27.65, while Goldcorp climbed 39 cents, or 1.6%, to $24.55, and Suncor moved higher 25 cents to $35.27.
Sherritt International’s CEO has expressed confidence his company and its partners in a large Madagascar nickel mine will reach agreement soon with lenders to defer repaying project loans for several years.
Sherritt shares were stable at 89 cents each.
An oil spill into a major Canadian river from a Husky Energy Inc pipeline started last week, but flows were not shut down until the following morning.
Husky gained 10 cents a share to $15.70.
Raymond James raised the price target on Bonavista Energy to $3.75 from $3.50. Bonavista shares added a penny to $3.50.
Canaccord Genuity initiated coverage on Whitecap Resources with a buy rating. Whitecap shares picked up 16 cents, or 1.7%, to $9.57.
ON BAYSTREET
The TSX Venture Exchange gained 3.68 points to 774.59
Nine of the 13 subgroups began the day upward, as gold hiked 1.7%, information technology clicked 1.6% higher, and materials gathered 1.5%.
The three laggards were consumer discretionary issues, down 0.7%, telecoms, down 0.5%, and financials, off 0.1%. Real-estate stocks were unchanged in the first hour.
ON WALLSTREET
U.S. stocks traded higher Wednesday, helped by positive reaction to some major earnings reports, ahead of the central bank's decision on monetary policy.
The Dow Jones Industrials picked up 56.15 points to 18,529.90, with Apple and Boeing contributing the most to gains. Coca-Cola had the greatest negative impact.
The S&P 500 tallied 2.09 points to 2,171.27, with information technology leading six sectors higher and consumer staples the greatest decliner.
The NASDAQ advanced 33.41 points to 5,143.58
Apple reported earnings that exceeded expectations on both the top and bottom lines, strong current-quarter revenue guidance, and iPhone and iPad shipments above estimates. Shares gained more than 7.5% in morning trade and were tracking for their best day since April 2014.
Boeing posted a smaller-than-expected loss for the second quarter – its first such loss in seven years -- and cut its full-year forecast, due to previously announced charges from several of its aircraft programs. Revenue beat estimates, and while Boeing cut its full-year forecast to account for those charges, its forecast is above Street estimates.
Coca-Cola reported earnings that beat on revenue that missed. The beverage maker said international headwinds were more severe than anticipated, and that the macroeconomic environment worsened in the quarter. However, the company did see a 3% rise in organic revenue, thanks to better pricing.
Comcast posted earnings that beat on both the top and bottom line, and reported a 3% increase in revenue per cable customer over a year ago. The firm also saw good results for its internet and video businesses.
Anthem reported quarterly earnings that beat on both the top and bottom line. The health insurer said it remains committed to completing its planned acquisition of Cigna despite a Justice Department lawsuit aimed at blocking the deal
In economic news, overall orders for durable goods orders fell 4% in June. Non-defense capital goods orders excluding aircraft increased 0.2% last month, Reuters said.
Pending home sales rose a far less-than-expected 0.2% in June. Oil inventories are due later in the morning.
The Federal Open Market Committee is scheduled to conclude its two-day meeting with a statement at 2 p.m. ET. The Fed is not expected to raise rates, but the statement will be scrutinized for indications on the timing of the next rate hike.
Prices for the 10-year Treasury gained ground, dropping yields to 1.55% from Tuesday’s 1.56%. Treasury prices and yields move in opposite directions.
Oil prices added 11 cents a barrel to $43.03 U.S.
Gold prices grew $8.40 to $1,329.20 U.S. an ounce.
