TSX Flies to Record Highs

Railways in Focus


Equities in Canada’s largest centre maintained record highs midday Tuesday, helped by mining stocks, while the prospect of strong corporate earnings further lifted investor sentiment.

The TSX Composite gained 68.72 points to 21,054.09.

The Canadian dollar picked up 0.16 cents to 80.97 cents U.S.

Endeavour Silver and SilverCrest Metals were the largest percentage gainers on the TSX. Endeavour took on 11 cents, or 2%, to $5.76, while SilverCrest obtained 15 cents, or 1.7%, to $9.25.

Investors are focused on the earnings of major railroad operators, including Canadian National Railway and Canadian Pacific Railway. CN inched up three cents to $153.03, while CP lost 25 cents to $90.62.

ON BAYSTREET

The TSX Venture Exchange jumped 7.37 points to 945.18.

The 12 TSX subgroups were split right down the middle, with real-estate developing 1%, while information technology and health-care each growing 0.9%.

The half-dozen laggards were weighed most by communications stocks, sagging 0.3%, while materials and consumer staples each shed 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 vaulted 179.13 points to 35,437.74.

The S&P 500 gained 29.44 points to 4,515.90.

The NASDAQ Composite spiked 99.23 points to 15,121.04.

Dow member Travelers saw its shares gain more than 3% 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 3%.

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%,

Other major reports after the bell Tuesday include Netflix and United Airlines.

Prices for 10-year Treasurys lost some ground, raising yields to 1.63% from Monday’s 1.59%. Treasury prices and yields move in opposite directions.

Oil prices regained 83 cents to $82.37 U.S. a barrel.

Gold prices regrouped 4.80 to $1,770.500 U.S. an ounce.