TSX hikes as energy prices rally

TD, Element Fleet in focus

Canada's main stock index climbed on Tuesday as higher oil prices lifted energy stocks and concerns around Turkey's currency crisis receded.

The S&P/TSX Composite Index stayed afloat 45.28 points to greet noon at 16,296.03

The Canadian dollar recovered 0.16 cents to 76.34 cents U.S.

The energy sector fared well, getting a boost of 42 cents a share in Suncor Energy to $53.58, and Canadian Natural Resources, up 18 cents to $45.47.

Among financials, Toronto-Dominion Bank added 55 cents to $78.06, Manulife Financial Corp gained 36 cents, or 1.5%, to $24.29, and Royal Bank of Canada added 34 cents to $101.70.

The largest percentage gainers on the TSX were Element Fleet Management which jumped 74 cents, or 12.5%, to $6.64, after posting second quarter results, and Eldorado Gold, which rose three cents, or 2.4%, to $1.29.

Home Capital Group fell $1.20, or 7.9%, to $14.07, the most on the TSX, after the Canadian lender issued its second-quarter report.

The second biggest decliner was Canopy Growth Co, down $2.46, or 7%, to $32.58.

ON BAYSTREET

The TSX Venture Exchange erased 4.84 points by noon to 676.15

Eight of the 12 subgroups were in the green by lunch time, with telecoms ahead 0.7%, financials, up 0.6%, and consumer staples, better by 0.5%.

The four laggards were weighed heavily by health-care issues, fading 3%, while gold dumped 1%, and materials, off 0.4%.

ON WALLSTREET

Stocks rose on Tuesday as a rebound in the Turkish lira from an all-time low lifted investor sentiment.

The Dow Jones Industrial Average popped 109.15 points to 25,296.85,

The S&P 500 recovered 28.33 points to 2,840.26. Both Dow and S&P were also on track to snap four-day losing streaks.

The NASDAQ recouped 18.33 points to 7,869.81

Tech shares contributed to the gains as Apple and Amazon both rose. Meanwhile, bank stocks rose as Goldman Sachs, Citigroup and Morgan Stanley all traded about 1% higher.

Home Depot reported second-quarter earnings and revenue easily topped Wall Street estimates. The company also raised its full-year earnings outlook. The stock rose 0.4% midday.

The Dow component is the latest company to report better-than-expected quarterly earnings in what has been a very strong reporting season. Through Tuesday morning, 76.8% of S&P 500 companies that have topped analysts' earnings estimates. Corporate earnings have grown more than 24% the second quarter on a year-over-year basis.

Energy shares were the best performers on Wall Street, as the sector rose nearly 1% on the back of a 1.6% gain in U.S. crude. Tech shares also contributed to the gains as Apple and Amazon both rose.

The lira rose more than 4% to trade at 6.56 after falling to a record-low 7.24 per U.S. dollar on Monday. The currency has been under pressure recently as market watchers became jittery over Turkish President Recep Erdogan's control of the economy and Donald Trump saying last week that he supported doubling metal tariffs on the Middle Eastern country.

Tensions between the two countries intensified after a Turkish delegation left Washington last week with no apparent progress on the detention of U.S. pastor Andrew Brunson, who is charged with supporting a group blamed for an attempted coup in 2016.

Prices for the benchmark for the 10-year U.S. Treasury were lower, dropping yields to 2.89% from Monday’s 2.87%. Treasury prices and yields move in opposite directions.

Oil prices were unchanged at $67.20 U.S. a barrel.

Gold prices picked up $4.80 to $1,203.70 U.S. an ounce.