Equity markets in Toronto enjoyed slight gains, as investors remained cautious ahead of the U.S. Federal Reserve's two-day policy meeting, which starts later today.
The S&P/TSX composite index gained 21.57 points to begin Tuesday at 12,838.45
Encana Corp. has shut 397 out of 1,241 wells in the Denver-Julesburg basin, Colorado, as a result of recent flooding in the state, a company spokesman said on Monday. Encana shares prospered 14 cents to $18.43.
Hudson's Bay Co. said on Monday that Harrods executive Marigay McKee will become president of Saks Inc after it acquires the upscale U.S. department store operator. Bay shares faded six cents to $17.38.
On the economic slate this morning, Statistics Canada reported that July manufacturing sales rose 1.7% to $49.5 billion in July. The market call was for a gain of only 0.5%.
ON BAYSTREET
The TSX Venture Exchange slid 0.54 points to 939
All but three of the 14 Toronto subgroups were higher at the outset, information technology leading the way with a gain of 1%, while health-care stocks put on 0.5% and financials picked up 0.4%.
The three laggards were materials, off 0.4%, utilities, down 0.3%, and the metals and mining group, sliding 0.1%.
ON WALLSTREET
Stocks continued their September rally even as investors focus on a meeting of the Federal Reserve, which could decide to trim its quantitative easing program on Wednesday.
The Dow Jones Industrials picked up 50.88 points to begin Tuesday at 15,545.70
The S&P 500 index gained 5.35 points to 1,702.95. The NASDAQ advanced 17.75 points to 3,735.60
Shares of Microsoft rose after the company boosted its dividend by 22% and announced a $40-billion U.S. share buyback plan.
Airline stocks rose after JPMorgan upgraded Delta and U.S. Airways to overweight from neutral. Shares of Southwest, Jetblue and Alaska were also rising on the upgrade.
Shares of JPMorgan Chase were higher following reports that the bank is set to pay at least $700 million U.S. in fines in connection with the "London Whale" trading debacle.
The Fed has been pumping liquidity into the system by buying bonds and other securities worth $85 billion U.S. per month, providing support to markets around the world. Investors are concerned about the impact that scaling back this massive program will have on stocks and bond yields.
On the economic front, the U.S. Consumer Price Index rose just 0.1% in August, a sign that inflation remains tame.
Prices for the 10-year U.S. Treasury eked up, lowering yields to 2.86% from Monday’s 2.87%. Treasury prices and yields move in opposite directions.
Oil prices fell 75 cents to $105.84 U.S. a barrel.
Gold prices were lower by $5.10 at $1,312.70 U.S. an ounce.
Related Stories
