Equities in Canada’s largest market rose in early trade on Wednesday, as financial stocks gained as investors priced in a greater chance of a interest rate hike and Empire Co Ltd jumped after reporting quarterly results and increasing its dividend.
The S&P/TSX Composite Index inched higher 6.24 points to begin Wednesday’s session at 15,287.46
The Canadian dollar gained 0.48 cents to 76.37 cents U.S.
Utilities proved something of a laggard in the early going Wednesday, as Fortis Inc. lost 18 cents a share to $46.35.
Energy stocks were having some trouble, too, as TransCanada Corp. doffed 67 cents, or 1.1%, to $62.08, while Suncor Energy faded 26 cents to $38.23.
Health-care stocks carried the torch in the first hour, as Valeant Pharmaceuticals gained 19 cents to $22.07.
Empire shares galloped $1.71, or 8.9%, to $20.81.
RBC cut the target price on Aritzia Inc., to $21.00 from $23.00. Shares were static at $15.08.
TD Securities cut the target price on Sandvine Corp. to $4.15 from $4.50. Sandvine shares vaulted 34 cents, or 8.7%, to $4.25.
CIBC cut the rating on Gildan Activewear to neutral from outperform. Gildan shares stepped back 77 cents, or 1.9%, to $40.63.
ON BAYSTREET
The TSX Venture Exchange fell 0.5 points to 769.36
Seven of the 12 TSX subgroups were lower to kick things off Wednesday, as utilities dropped 0.6%, energy lost 0.4%, and gold dipped 0.3%
The five gainers were led by health-care, up 0.7%, consumer staples, picking up 0.5%, and financials, better by 0.3%.
ON WALLSTREET
U.S. stocks traded higher on Wednesday after the European Central Bank tried to walk back remarks made by ECB President Mario Draghi a day earlier.
The Dow Jones Industrials recovered from a near-100-point fall Tuesday, gaining 124.08 points at 21,434.74, with Goldman Sachs and Disney contributing the most gains.
The S&P 500 regained 13.24 points to 2,432.63, with financials rising 1.4% to lead advancers.
The NASDAQ jumped 17.21 points to 6,163.83
A source familiar with Draghi's knowledge told Reuters that Draghi intended to signal tolerance for a period of weaker inflation, not an imminent policy tightening.
Draghi said Tuesday "the threat of deflation is gone and reflationary forces are at play," sending the euro to a one-year high against the dollar. The currency pulled back from those levels on Wednesday following Reuters' report.
The tech sector has been the stalwart of the U.S. stock market, rising about 17% for the year. But the tech sector dropped 1.6% Tuesday.
Financials entered Wednesday's session as the second-best-performing sector over the past month, rising 2.4% amid the prospects of higher interest rates.
In economic news, mortgage applications fell 6% last week, while pending home sales fell for the third straight month in May.
Prices for the benchmark 10-year Treasury note tailed off, raising yields to 2.24% from Tuesday’s 2.21%. Treasury prices and yields move in opposite directions.
Oil prices eased off three cents to $44.21 U.S. a barrel
Gold prices gained $2.60 to $1,249.50 U.S. an ounce.
