TSX Enjoys Small Gains at Outset

Xebec, Smartcentres REIT Units in Forefront

Canada's main stock index opened higher on Wednesday, as heavyweight energy and mining stocks tracked stronger commodities, with investors awaiting minutes from the U.S. Federal Reserve's latest meeting for clues on its policy stance.

The TSX Composite index jumped 57.58 points to begin the day at 20,357.61.

The Canadian dollar added 0.13 cents to 80.40 cents U.S.

The San Rafael mine in northern Mexico operated by Americas Gold and Silver Corp will reopen following months of talks with the country's main mining union, Mexico’s economy ministry said on Tuesday. Americas shares gained six cents, or 3.3%, to $2.03.

Teck Resources on Tuesday estimated third-quarter steel-making coal sales would be reduced by 300,000-500,000 tonnes due to a rail service disruption from the wildfires in British Columbia. Teck shares picked up 73 cents, or 2.6%, to $28.35.

Scotiabank re-initiated coverage on Smartcentres REIT with a sector perform rating. Units of Smartcentres faded 21 cents to $29.92.

Canaccord Genuity raised the rating on Xebec Adsorption to buy from hold. Xebec shares lost four cents to $4.50.

Western University reported its IVEY School of Business’ Purchasing Managers Index progressed to 71.9 in June, up from 64.7 in May, and much better than the 58.2 reading for June 2020.

ON BAYSTREET

The TSX Venture Exchange dumped 10.68 points to 953.52.

Eight of the 12 TSX subgroups were in the green, led by energy, ahead 0.8%, while information technology and materials each climbed 0.7%,

The four laggards were weighed most by health-care, down 0.2%, while financials and consumer discretionary stocks each lost 0.1%.

ON WALLSTREET

The S&P 500 advanced on Wednesday, helped by gains in technology stocks, after the index ended a seven-day winning streak in the
previous session.

The Dow Jones Industrials added 85.23 points to 34,662.50,

The S&P 500 regained 12.1 points to 4,355.64

The NASDAQ gained 55.09 points to 14,718.73, yet another intraday high for the index.

With falling rates and concern about peaking economic growth, investors have rediscovered their old Big Tech favorites. Apple and Amazon are both up double digit percentage returns over the past month, far outpacing the S&P 500's 2.8% return.

Major technology names like Apple, Facebook and Google-parent Alphabet rose at the open on Wednesday. Shares of Amazon rose nearly 1% after the e-commerce giant gained nearly 5% in the previous session.

Energy stocks were in the green as oil prices increased. Occidental Petroleum, APA Corp. and Pioneer Natural Resources all rose more than 1%.

Bank shares including Goldman Sachs and Bank of America continued their retreat on Wednesday as long-term bond yields fell further, hurting the industry’s profitability prospects.

Investors will be listening to hear more clues on the direction of the Federal Reserve’s monetary policy when it releases its latest meeting minutes Wednesday afternoon.

The Fed’s minutes are expected to be dovish with the central bank looking for progress in the labour market and not worried that recent inflation will become a persistent trend.

Prices for 10-Year Treasurys gained ground, lowering yields to 1.32% from Tuesday’s 1.36%. Treasury prices and yields move in opposite directions.

Oil prices took on 72 cents to $74.09 U.S. a barrel.

Gold prices gained $10.80 to $1,805 U.S. an ounce.