Energy Lifts TSX out of Monday Doldrums

Altus, Boat Rocker in Focus

Canada's energy-heavy main stock index opened higher on Tuesday, as oil prices hit their highest levels in at least three years, with miners limiting gains.

The TSX Composite recovered 52.22 points to begin Tuesday at 20,104.47.

The Canadian dollar took on 0.07 cents to 79.49 cents U.S.

RBC cut the rating on Air Canada to sector perform from outperform. Shares in the “Maple Leaf Airline” docked 45 cents, or 1.9%, to $23.71.

TD Securities resumed coverage on Altus Group with a buy rating. Altus shares gathered 48 cents to $61.55.

Canaccord Genuity initiated coverage on Boat Rocker Media with a buy rating. Boat Rocker heightened 15 cents, or 2.1%, to $7.15.

On the macroeconomic scale, Statistics Canada said our merchandise exports increased 0.8% in August, while imports decreased 1.4%.

That means Canada's merchandise trade balance with the world remained in a surplus position, widening from $736 million in July to $1.9 billion in August.


The TSX Venture Exchange gained 2.33 points to 862.49

Eight of the 12 TSX subgroups were up in the first hour, with energy soaring 1.5%, while information technology picked up 0.6%, and financials ahead 0.5%.

The four laggards were weighed most by gold, down 0l9%, materials, off 0.6%, and utilities sliding 0.2%.


The major averages rebounded on Tuesday following a technology-centered market rout in the previous session.

The Dow Jones Industrials surged 229.13 points 34,232.05

The S&P 500 picked up 34.92 points to 4,335.41

The NASDAQ Composite jumped 140.58 points to 14,396.07.

Mega-cap technology names were solidly in the green on Tuesday. Netflix rose 3.5%, Amazon gained 1.6% and Apple and Alphabet advanced more than 1% each. Facebook shares rose 1% following a 5% slide on Monday due to a whistleblower’s claims and a site outage.

Energy stocks rose again as oil prices continued their climb. U.S. oil prices topped $79 per barrel on Tuesday. Exxon Mobil and ConocoPhillips each gained more than 1%. Chevron advanced 2.7%.

In Washington, lawmakers are still trying to agree to raise or suspend the U.S. borrowing limit and avert a dangerous first-ever default on the national debt. The Treasury Department warned last week that lawmakers must address the debt ceiling before Oct. 18 when officials estimate the U.S. will exhaust emergency efforts to honor its bond payments.

Still, some believe the outlook for equities remain robust after the weak September as the economy continues to rebound from the Covid crisis.

Prices for 10-year Treasurys sagged, raising yields to 1.52% from Monday’s 1.48%. Treasury prices and yields move in opposite directions.

Oil prices gained $1.37 to $78.99 U.S. a barrel.

Gold prices slumped $16.30 to $1,751.30 U.S. an ounce.