Equities in Canada’s largest market advanced on Wednesday, boosted by expectations that minutes from the U.S. Federal Reserve's latest meeting will show it remains committed to stimulating the U.S. economy and by a rise in oil prices that lifted shares of energy producers.
The S&P/TSX composite index climbed 64.07 points to greet noon at 14,589.26
The Canadian dollar slumped 0.24 cents to 91.45 cents U.S.
The Toronto stock market's benchmark index climbed for a second straight session and is up more than 7% this year.
Financials, the index's most heavily weighted sector, rose as Royal Bank of Canada climbed 0.7% to $73.94, and Bank of Montreal was up 0.5% at $74.89.
Shares of energy companies advanced, supported by a gain in the price of oil.
Canadian Natural Resources added 1% to $43.79, and Enbridge jumped 1.2% to $52.70.
In corporate news, Sears Canada posted a bigger quarterly loss as a prolonged winter hurt sales. The stock was little changed.
ON BAYSTREET
The TSX Venture Exchange remained positive 2.26 points to 972.41.
All but three of the 14 Toronto subgroups were positive by noon ET, led by health-care and consumer discretionaries, up 0.8% each, and financials, up 0.6%.
The three laggards were materials, down 0.3%, gold, off 0.1%, and real-estate, dipping 0.01%.
ON WALLSTREET
Stocks surged Wednesday morning and have maintained steam ahead of a major release from the Federal Reserve Board of Governors.
The Dow Jones Industrial Average climbed 117.27 points to 16,491.58
The S&P 500 stayed positive 8.49 points to 1,881.32, and the NASDAQ composite index gained 13.93 points to 4,122.97
Although Target stock was up slightly in early trading despite releasing earnings showing that it continues to struggle in the wake of December's data breaches, its shares have since tipped negative. It's still not a dramatic move as investors had been bracing for the worst.
Tiffany & Co., American Eagle Outfitters and Lowe's also reported earnings. Results continue to be mixed as some consumers are navigating the shifts to online sales and changing consumer preferences and spending habits better than others.
Tiffany's was up almost 10% after posting strong sales growth and profits that were 50% higher than the same time last year, while American Eagle and Lowe's were each down slightly at a little more than 2%.
There was more bite than bark for PetSmart, which opened 7% lower and has stayed there after reporting higher than expected quarterly earnings on lower than expected sales.
Netflix is enjoying a pop, up less than 3%, on news that it's planning a further expansion into Europe by the end of the year.
Meanwhile customer relationships site SalesForce is one of the biggest losers in the S&P 500, with shares down 3.5% despite posting preliminary revenue that was 37% higher than the same time last year as it, like many tech companies, continues to lose money.
Auction site eBay fell around 2% after it reported a data breach affecting user accounts and passwords.
The Fed minutes come out at 2 p.m. ET and could have an influence on markets, as they give investors clues to their thinking on interest rate decisions. Wall Street expects interest rates to stay low for the rest of the year.
Janet Yellen, the chairwoman of the Federal Reserve Board, is giving the commencement address for New York University at Yankee stadium, and investors will be watching alongside the graduates for any crumbs of insight to her own thoughts.
Prices for 10-year U.S. Treasuries fell, raising yields to 2.54% from Tuesday’s 2.51%. Treasury prices and yields move in opposite directions
Oil prices recovered $1.54 to $103.87 U.S. a barrel.
Gold prices retreated $4.70 to $1,289.90 U.S. an ounce.
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