New Peak for TSX

WSP in Focus

Equities in Canada’s largest centre hit a record high on Tuesday, helped by mining stocks, while the prospect of strong corporate earnings further lifted investor sentiment.

The TSX Composite gained 56.62 points to open Tuesday at 21,014.99.

The Canadian dollar picked up 0.13 cents to 80.94 cents U.S.

Canaccord Genuity raised the rating on Ivanhoe Mines to buy from speculative buy. Ivanhoe shares kicked off the week’s second session up 25 cents, or 2.5%, to $10.15.

CIBC initiated coverage of Softchoice Corp. with an outperform rating. Softchoice shares picked up 26 cents to $29.31.

CIBC raised target price on WSP Global to $180.00 from $166.00. WSP shares acquired $1.05 to $167.34.

ON BAYSTREET

The TSX Venture Exchange jumped 6.41 points to 944.22.

All but three of the 12 TSX subgroups climbed the charts Tuesday, led by gold’s 1.2% gain, materials progress of 0.7%, and information technology, better by 0.4%.

The three laggards were energy, down 0.3%, while industrials and communications were each off 0.2%.

ON WALLSTREET

U.S. stock indexes gained on Tuesday as major companies continued to report strong third-quarter earnings, easing concerns that persistent COVID cases and rising costs would derail corporate America’s profit recovery.

The Dow Jones Industrials recovered 131.62 points to 35,390.23.

The S&P 500 gained 20.74 points to 4,507.20.

The NASDAQ Composite gained 59.69 points to 15,081.50.

Dow member Travelers saw its shares gain more than 2% after the insurance company’s quarterly earnings report topped expectations.
Johnson & Johnson also beat third-quarter earnings expectations by 25 cents per share. The health-care stock ticked up around 2%.

Procter & Gamble continued the bullish trend with better-than-expected earnings, but its shares dipped more than 1%. The consumer products giant said it is raising prices to cover rising commodity and freight costs and warned that inflation may continue.

Elsewhere, Walmart shares gained more than 1% after Goldman Sachs added the big box retailer to its conviction buy list, saying the stock could rally nearly 40%.

As of Tuesday morning, 82% of S&P 500 companies that have reported earnings beat expectations, according to FactSet. Taking into account those reports and estimates for those to come, third-quarter profit growth will come in at 30%,

Prices for 10-year Treasurys lost some ground, raising yields to 1.62% from Monday’s 1.59%. Treasury prices and yields move in opposite directions.

Oil prices faded 29 cents to $82.15 U.S. a barrel.

Gold prices regrouped 12.10 to $1,777.80 U.S. an ounce.

Markets Ahead on Earnings