TSX recovers from Monday losses

Staple sector king of the session

Markets in Toronto recovered well from hefty losses suffered Monday, as consumer staples and financial strengthened, partially to offset
losses in health-care and gold stocks.

The S&P/TSX Composite Index leaped 79.92 points to end the day at 16,330.67

The Canadian dollar recovered 0.32 cents to 76.5 cents U.S.

In the consumer staples sector, Loblaw Companies climbed $1.41, or 2.1%, to $68.76, while Metro gained 67 cents, or 1.6%, to $42.66.

Among financials, Toronto-Dominion Bank added 67 cents to $78.18, Manulife Financial Corp gained 57 cents, or 2.4%, to $24.50, and Royal Bank of Canada added 74 cents to $102.10.

The telecom sector was also prominent, as Rogers Communications gathered 46 cents to $68.02, while BCE took on 41 cents to $53.67.

The health-care sector took some lumps, as Aurora Cannabis declined 58 cents, or 9.8%, to $5.34, while Canopy Growth Co, down $2.89, or 8.3%, to $32.15.

Among golds, Kinross Gold settled six cents, or 1.5%, to $4.03, while Goldcorp slid 29 cents, or 1.9%, to $14.84.

Materials paled as well, as Agnico Eagle Mines lost 70 cents, or 1.4%, to $50.05, while Teck Resources fell 25 cents to $31.18.

ON BAYSTREET

The TSX Venture Exchange erased 7.2 points to finish Tuesday’s session at 673.79

All but three of the 12 subgroups were positive on the day, with consumer staples, popping 1.4%, financials, up 1%, and telecoms, better by 0.9%.

The three laggards were weighed heavily by health-care issues, fading 4.1%, while gold dumped 1.9%, and materials, off 0.7%.

ON WALLSTREET

Stocks rose on Tuesday as a rebound in the Turkish lira from an all-time low lifted investor sentiment.

The Dow Jones Industrial Average muscled up 112.22 points to 25,299.92.

The S&P 500 recovered 18.03 points to 2,839.96. Both Dow and S&P snapped four-day losing streaks.

The NASDAQ jumped 51.19 points to 7,870.89

Tech shares contributed to the gains as Apple rose 0.4%, and Amazon improved 1.2%. Meanwhile, bank stocks rose as Goldman Sachs, Citigroup and Morgan Stanley all closed more than 1% higher.

Home Depot reported second-quarter earnings and revenue easily topped Wall Street estimates. The company also raised its full-year earnings outlook. The stock briefly traded higher before falling 0.5%.

Fusion Connect Inc. and CDK Global Inc. were also scheduled to come out Tuesday with earnings.

The Dow component is the latest company to report better-than-expected quarterly earnings in what has been a very strong reporting season. Through Tuesday morning, 76.8% of S&P 500 companies that have topped analysts' earnings estimates. Corporate earnings have grown more than 24% the second quarter on a year-over-year basis.

Energy shares were the best performers on Wall Street, as the sector rose nearly 1% on the back of a 1.6% gain in U.S. crude. Tech shares also contributed to the gains as Apple and Amazon both rose.

The lira rose more than 4% to trade at 6.56 after falling to a record-low 7.24 per U.S. dollar on Monday. The currency has been under pressure recently as market watchers became jittery over Turkish President Recep Erdogan's control of the economy and Donald Trump saying last week that he supported doubling metal tariffs on the Middle Eastern country.

Tensions between the two countries intensified after a Turkish delegation left Washington last week with no apparent progress on the detention of U.S. pastor Andrew Brunson, who is charged with supporting a group blamed for an attempted coup in 2016.

Prices for the benchmark for the 10-year U.S. Treasury were lower, dropping yields to 2.9% from Monday’s 2.87%. Treasury prices and yields move in opposite directions.

Oil prices inched up one cent at $67.21 U.S. a barrel.

Gold prices picked up $2.70 to $1,201.60 U.S. an ounce.