Big Rise for Stocks on TSX

Bank Stocks Surge to Lift U.S. Markets

Stocks continued on their incredible recent hot streak in Toronto Wednesday, powered again by energy stocks, with an assist from Air Canada and other industrial firms.

The S&P/TSX Composite Index jumped 96.63 points to close Wednesday at 15,389.60, a level it hasn’t seen in months.

The Canadian dollar withered 0.28 cents to 81.09 cents U.S.

Energy stocks again carried the day in Toronto, as shares of Cenovus Energy heightened 92 cents, or 8%, to $12.40, while Crescent Point Energy climbed 41 cents, or 4.6%, to $9.50.

Air Canada far and away led the pack of industrials making their way toward the sky, with the Maple Leaf airline obtaining $2.55, or 10.9%, to $25.88, while West Fraser Timber jumped $1.53, or 2.2%, to $71.00

Among consumer discretionary issues, Magna International soared 73 cents, or 1.2%, to $64.31, while Ritchie Bros. Auctioneers gained 64 cents, or 1.7%, to $38.04.

Gold stocks put a weight on things, though, with Kinross Gold surrendering 20 cents, or 3.6%, to $5.35, and Barrick Gold dropping 46 cents, or 2.2%, to $20.27.

Among other resource issues, Agnico Eagle Mines dipped 53 cents, or 0.9%, to $57.72, while Agrium settled $1.16 to $132.01

ON BAYSTREET

The TSX Venture Exchange slipped 1.09 points to 776.66

Eight of the 12 TSX subgroups were positive on the day, with energy gushing 2.3%, industrials rumbling along 1.2%, while consumer discretionary stocks climbed 0.8%.

The four laggards were weighed most by gold, down 1.3%, materials, skidding 0.6%, and real-estate, off 0.2%.

ON WALLSTREET

The S&P 500 and Dow Jones industrial average closed at record highs and bank stocks surged after the Federal Reserve indicated another rate hike this year was possible and that it would begin the unwinding of its balance sheet next month.

The Dow added 41.79 points to Tuesday’s all-time high at 22,412.59, with Boeing and McDonald's contributing the most to the gains.

The S&P 500 nicked ahead 1.59 points above Tuesday’s all-time record to 2,508.24, with energy and industrials contributing the most to the gains

The NASDAQ fell 5.28 points to Tuesday’s peak to 6,456.04, with Apple and Microsoft both lower.

Following the Fed's announcement, shares of major banks including PNC Financial Services, Bank of America and Citi were all up more than 1%. Investors now reportedly see a 70% chance of a rate increase by the end of December.

On Wall Street, shares of FedEx rose more than 2% after trading sharply lower in the pre-market. The shipping giant said Tuesday it now expects earnings between $11.05 and $11.85 per share, below its previous projection between $12 and $12.80 per share.

The company said it adjusted its outlook to account for the impact of the TNT Express cyberattack, which FedEx said "significantly affected" the worldwide operations of the segment.

General Mills was one of the worst performers in the S&P 500, falling more than 5% after the company posted weaker-than-expected profit. Net income fell to $404.7 million while the company earned 71 cents per share, short of expectations of 76 cents per share.

The U.S. Labor Department reported that consumer prices rose 0.4% last month, making August's gain the largest in seven months and lifting the year-over-year increase in the CPI to 1.9%.

The National Association of Realtors said on Wednesday existing home sales decreased 1.7% to a seasonally adjusted annual rate of 5.35 million units last month. That was the lowest level since August 2016.

Prices for the benchmark 10-year Treasury note sagged, raising yields to 2.27% from Tuesday’s 2.25%. Treasury prices and yields move in opposite directions.

Oil prices hiked 93 cents a barrel to $50.29

Gold prices sank $5.90 to $1,304.70 U.S. an ounce