Canada's main stock index was moving forward on Tuesday as gains in the materials sector countered losses in the energy sector following a drop in oil prices.
The S&P/TSX Composite Index recovered 50.75 points to wind into noon hour Tuesday at 16,396.22
The Canadian dollar eked up 0.02 cents at 76.77 cents U.S.
The materials sector was boosted by shares of First Quantum Minerals, which jumped 64 cents, or 3.4% to $19.77 after posting quarterly results.
Elsewhere in the mining sector, Lundin Mining rose 15 cents, or 2.1% to $7.20 after a rating upgrade.
WestJet Airlines fell $1.95, or 9.8% to $18.00, to be the top laggard on the TSX, followed by shares of Shopify, down $10.75, or 5.6% to $181.11, after results.
On the economic front, Statistics Canada reported real gross domestic product was up 0.5% in May, after increasing 0.1% in April. In all, 19 of 20 industrial sectors registered increases.
The agency’s industrial product price index rose 0.5% in June, primarily as a result of higher prices for primary non-ferrous metal products and motorized and recreational vehicles.
StatsCan’s raw materials product index also rose 0.5%, mainly on the strength of higher prices for animals and animal products and metal ores, concentrates and scrap.
ON BAYSTREET
The TSX Venture Exchange lost 1.34 points to 704.61
All but two of the 12 subgroups had grown positive by noon, with materials surging 0.8%, real-estate 0.6% more solid, and utilities 0.5% to the good.
The two lone laggards were energy, 0.5% less energetic, and health-care, ailing 0.1%.
ON WALLSTREET
Stocks traded higher on Tuesday after a report said the U.S. and China are seeking talks to defuse an escalating trade conflict between the two countries.
The Dow Jones Industrials gained 122.14 points at 25,428.97, with 3M, Caterpillar and Boeing as the best-performing stocks in the index.
The S&P 500 stepped forward 15.18 points to 2,817.78, as industrials rose nearly 2%.
The NASDAQ muscled up 51.02 points to 7,681.02.
Both the S&P 500 and NASDAQ came into Tuesday's session with three-day losing streaks as they were pressured by a steep decline in tech.
Shares of big exporters Boeing and Caterpillar jumped more than 1.5% on the report. Deere's stock also gained more than 4%.
Tech has lost 5.4% over the past three sessions after mixed results from some of the largest companies in the sector. Last week, Facebook reported weaker-than-expected revenue and disappointing global daily active users, a key metric for the company. Twitter, meanwhile, posted fewer-than-expected monthly users for the previous quarter.
These results have led some investors to lose faith in the so-called FANG trade, which is responsible for the lion's share of the S&P 500's gains this year.
The corporate earnings season continued on Tuesday with Dow-components Procter & Gamble and Pfizer reporting better-than-expected earnings. Shares of Procter were flat, while Pfizer's stock gained 0.5%
Apple, another Dow component, is scheduled to report Tuesday after the close.
Nearly 60% of the S&P 500 has released its quarterly results, with 78% of those companies posting better-than-expected earnings
The Federal Reserve started a two-day monetary policy meeting on Tuesday, with an announcement scheduled for Wednesday. Investors are not expecting a rise in interest rates, however, but discussion on trade or where the Federal Reserve is thinking of heading could be talked about.
Media reports have it that the world's largest economies are trying to restart talks in order to avoid a full -blown trade war. The report said Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He are talking privately about the matter.
Prices for the benchmark for the 10-year U.S. Treasury went higher, lowering yields to 2.96% from Monday’s 2.98%. Treasury prices and yields move in opposite directions.
Oil prices were down $1.27 to $68.86 U.S. a barrel.
Gold prices regained 80 cents to $1,232.70 U.S. an ounce.
